Existing law authorizes the Commissioner of Insurance to license producers of limited lines travel insurance to sell, solicit or negotiate travel insurance. (NRS 683A.265) Existing law sets forth various requirements and restrictions relating to producers of limited lines travel insurance and travel retailers who offer and disseminate travel insurance on behalf of a producer of limited lines travel insurance. (NRS 683A.193-683A.199, 683A.242, 683A.368-683A.3695) Section 49 of this bill repeals the provisions of existing law governing producers of limited lines travel insurance and travel retailers. Sections 2-36 of this bill reenact, reorganize and revise those provisions into a new chapter of the Nevada Revised Statutes governing travel insurance for the purpose of conforming more closely to the Travel Insurance Model Act adopted by the National Association of Insurance Commissioners. Sections 3-19 define words and terms for the purposes of this bill. Section 20 sets forth the applicability of this bill. Section 21 authorizes the Commissioner to issue a license as a producer of limited lines travel insurance to a person who has filed an application with the Commissioner. With certain exceptions, existing law prohibits a person from selling, soliciting or negotiating insurance for any class of insurance unless the person is licensed for that class of insurance. (NRS 683A.201) Existing law prohibits a producer of insurance from acting as an agent unless he or she is appointed as an agent by the insurer. (NRS 683A.321) Section 29 authorizes a producer of insurance licensed for life insurance, accident and health insurance, property insurance, casualty insurance, variable annuities and variable life insurance or personal lines to act as a producer of limited lines travel insurance and sell, solicit or negotiate travel insurance. Sections 29 and 41 of this bill provide that a producer of insurance who is licensed for property insurance and casualty insurance is not required to be appointed by an insurer to act as a producer of limited lines travel insurance and sell, solicit or negotiate travel insurance. Section 22 authorizes a travel retailer to offer and disseminate travel insurance under the license of a producer of limited lines travel insurance under certain conditions. Section 23 requires a producer of limited lines travel insurance to establish and maintain a register of each travel retailer that offers and disseminates travel insurance on behalf of the producer of limited lines travel insurance. Section 24 requires a travel retailer to make available to each prospective purchaser of travel insurance certain written materials. Section 25 prohibits a travel retailer from engaging in certain activities. Sections 26 and 42 of this bill authorize a travel retailer to receive compensation relating to his or her activities authorized by the provisions of this bill. Section 28 makes a producer of limited lines travel insurance responsible for the acts of a travel retailer who offers and disseminates travel insurance under the license of the producer of limited lines travel insurance. Section 27 makes a producer of limited lines travel insurance and a travel retailer subject to: (1) disciplinary action in the same manner as a producer of insurance; and (2) the provisions of existing law governing insurance trade practices and fraud. Section 18 defines “travel protection plan” to mean a product that provides: (1) travel insurance; (2) travel assistance services; (3) a cancellation fee waiver; or (4) any combination of those items. Section 30: (1) authorizes a travel protection plan to be offered for one price for the combined items of the plan if certain conditions are met; and (2) provides that a purchaser of a travel protection plan who cancels the plan is entitled to a full refund under certain circumstances. Section 31 requires: (1) all documents provided to a prospective purchaser of travel insurance to be consistent with the policy of travel insurance itself; and (2) certain information to be provided to a purchaser or prospective purchaser of travel insurance. Sections 32 and 33 set forth certain authorized and prohibited practices in the sale and marketing of travel insurance. Section 15 defines “travel administrator” as a person who directly or indirectly underwrites, collects charges, collateral or premiums from or adjusts or settles claims of residents of this State in connection with travel insurance. Section 34 prohibits a person from acting as a travel administrator unless the person holds: (1) a license as a producer of insurance for a property insurance or casualty insurance line of authority; (2) a license as a managing general agent; or (3) a certificate of registration as an administrator. Section 43 of this bill excludes a travel administrator and the employees of a travel administrator from the definition of “adjuster,” thereby exempting those persons from the licensing requirements applicable to an adjuster. Under existing law, authorized insurers and certain rate service organizations are required to file with the Commissioner all rates and proposed increases thereto, as well as the forms of policies to which the rates apply, certain supplementary rate information and any changes or amendments to the rates. (NRS 686B.070) Existing regulations require an insurer to annually submit to a statistical agent designated by the Commissioner certain information concerning certain lines of insurance, including, among others, an inland marine line of insurance. (NAC 686B.365) Section 35 provides that, for the purposes of such filings, with certain exceptions, travel insurance is required to be classified and filed as an inland marine line of insurance. Section 35 also authorizes an insurer to establish and use certain eligibility and underwriting standards. Section 36 authorizes the Commissioner to adopt regulations to carry out the provisions of this bill. Existing law requires an insurer to pay a tax upon his or her direct premiums and net direct considerations at the rate of 3.5 percent. (NRS 680B.027) Section 37 of this bill specifies the premiums concerning travel insurance to which the tax applies. Sections 38 and 39 of this bill make conforming changes to indicate the proper placement of section 37 in the Nevada Revised Statutes. Section 40 of this bill makes a conforming change to account for the repeal of the definition of “travel insurance” in section 49 and the reenactment of a revised definition of “travel insurance” in section 17. Existing law prohibits a person from engaging in any practice that is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance. (NRS 686A.020) Section 44 of this bill provides that it is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to: (1) offer or sell a policy that could never result in payment of any claims; or (2) market blanket travel insurance as free. Sections 45-47 of this bill make conforming changes to indicate the proper placement of section 44 in the Nevada Revised Statutes.

Statutes affected:
As Introduced: 680B.025, 680B.039, 683A.261, 683A.321, 683A.325, 684A.020, 686A.010, 686A.183, 686A.520
Reprint 1: 680B.025, 680B.039, 683A.261, 683A.321, 683A.325, 684A.020, 686A.010, 686A.183, 686A.520
As Enrolled: 680B.025, 680B.039, 683A.261, 683A.321, 683A.325, 684A.020, 686A.010, 686A.183, 686A.520
BDR: 680B.025, 680B.039, 683A.261, 683A.321, 683A.325, 684A.020, 686A.010, 686A.183, 686A.520