| Summary |
The bill adopts, in part, the National Association of Insurance
Commissioners' travel insurance model act (model act), which provides
a legal framework within which travel insurance must be sold in
Colorado.
The Travel Insurance Model Act applies to travel insurance that
covers a resident of Colorado; that is sold, solicited, negotiated, or offered
in Colorado; and for which the policies and certificates are issued for
delivery in Colorado.
With respect to the model act, the bill:
•
Requires an insurer to pay premium tax on travel insurance
premiums paid by specified persons;
•
Requires consumer disclosures for travel protection plans
and requires insurers to send fulfillment materials and
specific contact information for persons providing travel
assistance services and cancellation fee waivers;
•
Declares the following practices unfair or deceptive
practices:
•
Offering or selling travel insurance that could never
result in the payment of any claims for the insured;
and
•
Marketing blanket travel insurance coverage as free;
•
Requires travel insurance documents to be consistent with
the travel insurance policy, including forms, rate filings,
and certificates of insurance;
•
Requires disclosure of preexisting condition exclusions
prior to the purchase of travel insurance and in the
coverage fulfillment materials;
•
Unless the trip for which the travel insurance was
purchased has commenced or the policyholder has filed a
claim, allows the policy to be cancelled or the cost
refunded within a specified time period;
•
Prohibits the use of a negative option or opt out that
requires the consumer to take affirmative action to deselect
coverage;
•
Allows mandated coverage when the consumer's travel
destination requires travel insurance as a condition of
purchasing the trip or travel package;
•
Prohibits a person from acting as or representing that the
person is a travel administrator, unless the person is a
licensed insurance provider for property and casualty
insurance in Colorado for activities permitted under that
license; and
•
Allows travel insurance that provides certain coverage to
be filed under either an accident and health line of
insurance or an inland marine line of insurance.
Further, the bill makes conforming changes to existing law relating
to licensing limited lines travel insurance producers and registering travel
retailers.
Specifically, the bill:
•
Expands the definition of limited lines travel insurance
producer to include a travel administrator;
•
Includes in the definition of travel insurance, coverage
for emergency evacuation, repatriation of remains, and, as
approved by the commissioner of insurance, any other
personal risks relating to travel;
•
Prohibits a person from acting as a limited lines travel
insurance producer or travel retailer unless the person is
licensed or registered, respectively;
•
Specifies that the grounds for suspension and revocation
and the penalties applicable to resident insurance producers
are applicable to limited lines travel insurance producers
and travel retailers; and
•
Authorizes a person licensed in a major line of authority as
an insurance producer to sell, solicit, and negotiate travel
insurance under an individual, group, or blanket policy.
The model act codified in this bill does not include provisions that
are inapplicable to Colorado, including provisions relating to third-party
administrators and managing general agents. Further, unlike the model
act, Colorado requires that an insurer offering or selling travel insurance
that provides coverage for sickness, accident, disability, or death
occurring during travel, emergency evacuation, or repatriation of remains
hold both property and casualty and accident and health lines of authority.
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