AB 3104

Bill Subjects

Abstract

Existing law authorizes the Insurance Commissioner to issue a limited lines travel insurance agent license to any organization engaged in transacting travel insurance through travel retailers that do not meet other specified requirements. Existing law requires the transaction of travel insurance under the license of an organization holding a limited lines travel insurance agent license to be subject to specified conditions, including that a limited lines travel insurance agent may authorize a travel retailer to transact travel insurance if the limited lines travel insurance agent is clearly identified on marketing materials and fulfillment packages distributed by travel retailers to customers. Existing law requires an applicant for a limited lines travel insurance agent license to submit specified documents to the commissioner, including a written application for licensure signed by the applicant or officer of the applicant. Existing law requires the person or organization licensed pursuant to these provisions to pay the costs associated with any enforcement action. This bill would enact the California Travel Insurance Act and would revise and recast these provisions by, among other things, expanding and modifying definitions, including adding to the definition of travel insurance for coverage for personal risks emergency evacuation and the repatriation of remains. The bill would require a travel insurer to pay premium tax on travel insurance premiums paid by specified individuals, including primary certificate holders under a group travel insurance policy and individual primary policyholders, who are residents of this state. The bill would require a travel insurer to document the state of residence of the policyholder or certificate holder and report as premium only the amount allocable to travel insurance. The bill would also authorize travel protection plans, as defined, to be offered for one price for the combined features of the plan if specified conditions are met, including that the plan clearly discloses to the consumer that it includes travel insurance, travel assistance services, as defined, and cancellation fee waivers, as defined, at or prior to the time of purchase and the fulfillment materials, as defined, describe the included services in the plan and include the travel insurance disclosures and contact information for those providing the services. The bill would require a person offering travel insurance to be subject to existing provisions governing unfair trade practices regarding the business of insurance and would require the documents provided to consumers prior to the purchase of travel insurance to be consistent with the policy itself. The bill would require the fulfillment materials, as defined, to be provided to a policyholder or certificate holder as soon as practicable. The bill would authorize the policyholder or certificate holder to cancel a policy or certificate for a full refund from the date of purchase of a travel protection plan until certain specified dates, including 15 days following the date of delivery, as defined, of the plan's fulfillment materials by postal mail. The bill would also expressly prohibit a person transacting travel insurance or travel protection plans from using a negative option or opt out requiring an affirmative action to deselect coverage. The bill would prohibit a person from representing themselves as a travel administrator, as defined, unless the individual is a licensed property and casualty insurance agent or holds other specified licenses, including a valid managing general agent license. The bill would hold an insurer responsible for the acts of a travel administrator, administrative travel insurance underwritten by the insurer, and for the travel administrator maintaining all books and records relevant to the insurer. The bill would require the travel administrator to make those records available to the commissioner upon request. The bill would state the purpose of the above provisions would be to promote the public welfare by creating a comprehensive legal framework within which travel insurance may be sold in the state and would require the above provisions to supersede general provisions of law otherwise applicable to travel insurance.