H.B. 755
GENERAL ASSEMBLY OF NORTH CAROLINA
Apr 15, 2019
SESSION 2019 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH50083-MH-20A
Short Title: Travel Insurance Amendments. (Public)
Sponsors: Representatives Corbin, Hardister, and Hunter (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO CREATE A COMPREHENSIVE FRAMEWORK FOR THE SALE OF TRAVEL
3 INSURANCE IN NORTH CAROLINA.
4 The General Assembly of North Carolina enacts:
5 SECTION 1. G.S. 58-33-19 reads as rewritten:
6 "§ 58-33-19. Limited lines travel insurance.
7 (a) As used in this Article, section, the following definitions apply:
8 (1) Limited lines travel insurance producer. – Any of the following:
9 a. A licensed managing general underwriter.
10 b. A licensed managing general agent or third-party administrator.
11 c. A licensed insurance producer as defined by G.S. 58-33-10(7),
12 including:
13 1. A limited lines producer designated by an insurer as the travel
14 insurance supervising entity, as set forth in subsection (h) of
15 this section.
16 2. A limited lines producer appointed by an insurer, as set forth
17 in G.S. 58-33-40, who acts as a landlord or real estate broker
18 engaged in the rental or management of residential property for
19 vacation rental as defined in Chapter 42A of the General
20 Statutes.
21 d. A travel administrator, as defined in G.S. 58-44B-2.
22 (2) Offer and disseminate. – Providing general information, including a
23 description of the coverage and price, as well as processing the application,
24 collecting premiums, and performing other activities that do not require a
25 license and are permitted by the Department.
26 (3) Travel insurance. – Insurance coverage for the personal risks incident to
27 planned travel that includes, but is not limited to, the coverages listed in sub–
28 subdivisions a. through d. of this subdivision. Travel insurance does not
29 include major medical plans that provide comprehensive medical protection
30 for travelers with trips lasting six months or longer, including deployed
31 military personnel or those U.S. citizens working overseas as expatriates.
32 [Travel insurance includes:]following coverages:
33 a. Interruption or cancellation of trip or event.
34 b. Loss of baggage or personal effects.
35 c. Damages to accommodations or rental vehicles.
36 d. Sickness, accident, disability, or death occurring during travel.
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1 e. Emergency evacuation.
2 f. Repatriation of remains.
3 g. Any other contractual obligations to indemnify or pay a specified
4 amount to the traveler upon determinable contingencies related to
5 travel as approved by the Commissioner.
6 Travel insurance does not include major medical plans that provide
7 comprehensive medical protection for travelers with trips lasting longer than
8 six months, including, for example, those working or residing overseas as an
9 expatriate, or any other product that requires another specific insurance
10 producer license.
11 (4)(5) Travel retailer. – A business entity that makes, arranges, or offers travel
12 services planned travel and may offer and disseminate travel insurance as a
13 service to its customers on behalf of and under the direction of a limited lines
14 travel insurance producer.
15 (b) An individual or business entity may apply for a limited lines travel insurance
16 producer license by filing with the Department an application in a form and manner prescribed
17 by the Commissioner. If issued, the license authorizes the limited lines travel insurance producer
18 to sell, solicit, or negotiate travel insurance through a licensed insurer.
19 (c) A travel retailer may offer and disseminate travel insurance under a limited lines
20 travel insurance producer business entity license only if the following conditions are met:
21 (1) The limited lines producer or travel retailer provides all of the following to
22 purchasers of travel insurance:
23 a. A description of the material terms or the actual material terms of the
24 insurance coverage.
25 b. A description of the process for filing a claim.
26 c. A description of the review or cancellation process for the travel
27 insurance policy.
28 d. The identity and contact information of the insurer and limited lines
29 travel insurance producer.
30 (2) At the time of licensure, the limited lines travel insurance producer shall
31 establish and maintain a register on a form prescribed by the Commissioner
32 of each travel retailer that offers travel insurance on the limited lines travel
33 insurance producer's behalf. The register shall be maintained and updated
34 annually by the limited lines travel insurance producer and shall include the
35 name, address, and contact information of the travel retailer and an officer or
36 person who directs or controls the travel retailer's operations, and the travel
37 retailer's federal Tax Identification Number. The limited lines travel insurance
38 producer shall submit the register to the Department upon request. The limited
39 lines producer shall also certify that the travel retailer register complies
40 retailers registered comply with 18 U.S.C. § 1033. The grounds for the
41 suspension, revocation, and the penalties applicable to resident insurance
42 producers shall be applicable to the limited lines travel insurance producers
43 and travel retailers.
44 (3) The limited lines travel insurance producer has designated one of its
45 employees who is a licensed individual producer as the person responsible for
46 the limited lines travel insurance producer's compliance with this Chapter and
47 administrative rules adopted by the Commissioner.
48 (4) The person designated in subdivision (3) of this subsection and the president,
49 secretary, treasurer, and any other officer or person who directs or controls the
50 limited lines travel insurance producer's insurance operations comply with the
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1 fingerprinting requirements applicable to insurance producers in the resident
2 state of the limited lines travel insurance producer.
3 (5) The limited lines travel insurance producer has paid all applicable insurance
4 producer licensing fees as set forth in applicable State law.
5 (6) The limited lines travel insurance producer requires each employee and
6 authorized representative of the travel retailer whose duties include offering
7 and disseminating travel insurance to receive a program of instruction or
8 training, which may be subject to review by the Commissioner. The training
9 material shall, at a minimum, contain instructions on the types of insurance
10 offered, ethical sales practices, and required disclosures to prospective
11 customers.
12 (7) Limited lines travel insurance producers, and those registered under its
13 license, are exempt from the examination and continuing education
14 requirements under G.S. 58-33-30, 58-33-32, and 58-33-130.
15 (d) Any travel retailer offering or disseminating travel insurance shall make available to
16 prospective purchasers brochures or other written materials that have been approved by the travel
17 insurer and include all of the following:
18 (1) The identity and contact information of the insurer and the limited lines travel
19 insurance producer.
20 (2) An explanation that the purchase of travel insurance is not required in order
21 to purchase any other product or service from the travel retailer.
22 (3) A disclaimer that an unlicensed travel retailer is permitted to provide general
23 information about the insurance offered by the travel retailer, including a
24 description of the coverage and price, but is not qualified or authorized to
25 answer technical questions about the terms and conditions of the insurance
26 offered by the travel retailer or to evaluate the adequacy of the customer's
27 existing insurance coverage.
28 (e) A travel retailer's employee or authorized representative who is not licensed as a
29 limited lines travel insurance producer shall not do any of the following:
30 (1) Evaluate or interpret the technical terms, benefits, and conditions of the
31 offered travel insurance coverage.
32 (2) Evaluate or provide advice concerning a prospective purchaser's existing
33 insurance coverage.
34 (3) Hold himself or herself out as a licensed insurer, licensed producer, or
35 insurance expert.
36 (f) A Notwithstanding any other provision in law, a travel retailer, whose insurance
37 related activities and the activities of its employees and authorized representatives are limited to
38 offering or and disseminating travel insurance on behalf of and under the direction of a limited
39 lines travel insurance producer meeting the conditions stated in this section, is authorized to do
40 so and receive related compensation upon compliance with subdivision (c)(2) of this section by
41 the limited lines travel insurance producer.
42 (g) Travel insurance may be provided under in the form of an individual policy
43 individual, group, or under a group or master blanket policy.
44 (h) As the travel insurance supervising entity, the limited lines travel insurance producer
45 is responsible for the acts of the travel retailer and shall use reasonable means to ensure
46 compliance by the travel retailer with this section.
47 (i) The limited lines travel insurance producer and any travel retailer offering or
48 disseminating travel insurance under the limited lines travel insurance producer license shall be
49 subject to the provisions of Article 63 of this Chapter and to the full enforcement powers of the
50 Commissioner granted by Article 2 of this Chapter.
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1 (j) Any person licensed in a major line of authority as an insurance producer is authorized
2 to sell, solicit, and negotiate travel insurance. A property and casualty insurance producer is not
3 required to become appointed by an insurer in order to sell, solicit, or negotiate travel insurance."
4 SECTION 2. Chapter 58 of the General Statutes is amended by adding a new Article
5 to read:
6 "Article 44B.
7 "Travel Insurance.
8 "§ 58-44B-1. Scope and purpose.
9 (a) The purpose of this Article is to create a comprehensive legal framework within which
10 travel insurance may be sold in this State.
11 (b) The requirements of this Article shall apply to travel insurance which covers any
12 resident of this State sold, solicited, negotiated, or offered in this State and where policies and
13 certificates are delivered or issued for delivery in this State. It shall not apply to cancellation fee
14 waivers and travel assistance services, except as expressly provided herein.
15 (c) All other applicable provisions of this Chapter shall continue to apply to travel
16 insurance except that (i) the specific provisions of this Article shall supersede any general
17 provisions of law that would otherwise be applicable to travel insurance and (ii) in the event of a
18 conflict between this Article and other provisions of this Chapter regarding the sale and
19 marketing of travel insurance and travel protection plans, the provisions of this Article shall
20 control.
21 "58-44B-2. Definitions.
22 As used in this Article, in addition to the definitions in G.S. 58-33-19, the following
23 definitions apply:
24 (1) Aggregator site. – A Web site that provides access to information regarding
25 insurance products from more than one insurer, including product and insurer
26 information, for use in comparison shopping.
27 (2) Blanket travel insurance. – A policy of travel insurance issued to any eligible
28 group providing coverage for specific classes of persons defined in the policy
29 with coverage provided to all members of the eligible group without a separate
30 charge to individual members of the eligible group.
31 (3) Cancellation fee waiver. – A contractual agreement between a supplier of
32 travel services and its customer to waive some or all of the non-refundable
33 cancellation fee provisions of the supplier's underlying travel contract with or
34 without regard to the reason for the cancellation or form of reimbursement. A
35 cancellation fee waiver is not insurance.
36 (4) Eligible group. – Solely for the purposes of travel insurance, two or more
37 persons who are engaged in a common enterprise, or have an economic,
38 educational, or social affinity or relationship, including, but not limited to, any
39 of the following:
40 a. Any entity engaged in the business of providing travel or travel
41 services, including, but not limited to, tour operators, lodging
42 providers, vacation property owners, hotels and resorts, travel clubs,
43 travel agencies, property managers, cultural exchange programs, and
44 common carriers or the operator, owner, or lessor of a means of
45 transportation of passengers, including, but not limited to, airlines,
46 cruise lines, railroads, steamship companies, and public bus carriers,
47 wherein with regard to any particular travel or type of travel or
48 travelers, all members or customers of the group must have a common
49 exposure to risk attendant to such travel.
50 b. Any college, school, or other institution of learning covering students,
51 teachers, or employees or volunteers.
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1 c. Any employer covering any group of employees, volunteers,
2 contractors, board of directors, dependents, or guests.
3 d. Any sports team, camp, or sponsor thereof covering participants,
4 members, campers, employees, officials, supervisors, or volunteers.
5 e. Any religious, charitable, recreational, educational, or civic
6 organization or branch thereof covering any group of members,
7 participants, or volunteers.
8 f. Any financial institution or financial institution vendor, or parent
9 ho