26.1-26-54. Insurance licenses for limited lines travel insurance producers

26.1-26-54. Insurance licenses for limited lines travel insurance producers

1. Travel insurance, as that term is defined in this section, is a limited line of insurance.

2. As used in this section:

a. "Limited lines travel insurance producer" means a:

(1) Licensed third-party administrator;

(2) Licensed insurance producer, including a limited lines producer; or

(3) Travel administrator, as defined in section 26.1-58-01.

b. "Offer and disseminate" means to provide general information, including a

description of the coverage and price, as well as to process the application,

collect premiums, and perform other nonlicensable activities permitted by the

state.

c. "Travel insurance" means insurance coverage for personal risks incident to

planned travel, including interruption or cancellation of a trip or event; loss of

baggage or personal effects; damages to accommodations or rental vehicles;

sickness, accident, disability, or death occurring during travel; emergency

evacuation; repatriation of remains; or any other contractual obligations to

indemnify or pay a specified amount to the traveler upon determinable

contingencies related to travel as approved by the commissioner. The term does

not include a major medical plan that provides comprehensive medical protection

for an individual on a trip lasting at least six months, including an individual

working or residing overseas as an expatriate, or any other product that requires

a specific insurance producer license.

d. "Travel retailer" means a business entity that makes, arranges, or offers travel

services and which may offer and disseminate travel insurance as a service to

customers on behalf of and under the direction of a limited lines travel insurance

producer.

3. Notwithstanding any other provision of law:

a. The commissioner may issue a limited lines travel insurance producer license to

an individual or business entity that files an application with the commissioner in a

form and manner prescribed by the commissioner. A licensed limited lines travel

insurance producer may sell, solicit, or negotiate travel insurance through a

licensed insurer. A person may not act as a limited lines travel insurance producer

or travel insurance retailer unless properly licensed or registered.

b. A travel retailer may offer and disseminate travel insurance under a limited lines

travel insurance producer business entity license only if the following conditions

are met:

(1) The limited lines travel insurance producer or travel retailer provides to

purchasers of travel insurance:

(a) A description of the material terms or the actual material terms of the

insurance coverage;

(b) A description of the claim filing process;

(c) A description of the policy review or cancellation process for the travel

insurance policy; and

y if the following conditions

are met:

(1) The limited lines travel insurance producer or travel retailer provides to

purchasers of travel insurance:

(a) A description of the material terms or the actual material terms of the

insurance coverage;

(b) A description of the claim filing process;

(c) A description of the policy review or cancellation process for the travel

insurance policy; and

(d) The identity and contact information of the insurer and limited lines

producer.

(2) At the time of licensure, the limited lines travel insurance producer

establishes and maintains a register of each travel retailer that offers

insurance on the behalf of the producer. The register must be on a form

prescribed by the commissioner. Annually, the register must be updated by

the limited lines travel insurance producer. The register must include the

name, address, and contact information of the travel retailer and a person

that controls the travel retailer's operations. The register must include the

travel retailer's federal tax identification number. Upon request, the limited

lines travel insurance producer shall submit the register to the insurance

department. The limited lines producer shall certify that the travel retailer

registered complies with the Violent Crime and Law Enforcement Act of

1994 [Pub. L. 103-322; 108 Stat. 1796; 18 U.S.C. 1033 et seq.]. The

grounds for the suspension, revocation, and penalties applicable to resident

insurance producers under this chapter, must be applicable to limited lines

travel insurance producers and travel retailers.

(3) The limited lines travel insurance producer designates one of the producer's

licensed insurance employees as the individual responsible for the

compliance with the state's travel insurance laws, rules, and regulations.

(4) The designated employee, president, secretary, treasurer, or any other

individual who controls the producer's insurance operations complies with

the fingerprinting requirements applicable to insurance producers in the

resident state of the limited lines travel insurance producer.

(5) The limited lines travel insurance producer pays all applicable licensing fees

as set forth in state law.

(6) The limited lines travel insurance producer requires each employee and

authorized representative of the travel retailer, who offer and disseminate

travel insurance, to receive training, which is subject, at the discretion of the

commissioner, to review and approval. The training material must contain

instructions on the type of insurance offered, ethical sales practices, and

required disclosures to prospective customers.

4. If the insurance commissioner determines that a travel retailer, or a travel retailer's

employee has violated any provision of this chapter or any other provision of this title,

the commissioner may:

a. Direct the limited lines travel insurance producer to implement a corrective action

plan with the travel retailer; or

b. Revoke the authorization of the travel retailer to transact travel insurance on

behalf of the limited lines travel insurance producer under its license and direct

the limited lines travel insurance producer to remove the travel retailer's name

from its register.

5. If the insurance commissioner determines that a travel retailer, or a travel retailer's

employee, has violated any provision in this chapter or any other provision of this title,

the commissioner may:

a. Suspend or revoke the license of the limited lines travel insurance producer;

b. Issue a cease and desist order against the license of the limited lines travel

insurance producer; and

c. Impose a monetary fine on the limited lines travel insurance producer.

6. Limited lines travel insurance producers, and those registered under the producer's

license, are exempt from continuing education requirements.

7. A travel retailer shall make brochures or other written materials that have been

e and desist order against the license of the limited lines travel

insurance producer; and

c. Impose a monetary fine on the limited lines travel insurance producer.

6. Limited lines travel insurance producers, and those registered under the producer's

license, are exempt from continuing education requirements.

7. A travel retailer shall make brochures or other written materials that have been

approved by the travel insurer available to prospective purchasers. The materials must

include information that, at a minimum:

a. Provides the identity and contact information of the insurer and the limited lines

travel insurance producer;

b. Explains the purchase of travel insurance is not required in order to purchase any

other product or service from the travel retailer; and

c. Explains an unlicensed travel retailer may provide only general information about

the insurance offered by the travel retailer, including a description of the coverage

and price. An unlicensed travel retailer is not qualified or authorized to answer

technical questions about the terms and conditions of the insurance offered by

the travel retailer or evaluate the adequacy of existing insurance coverage.

8. An unlicensed employee or authorized representative of a travel retailer may not:

a. Evaluate or interpret the technical terms, benefits, or conditions of the offered

travel insurance coverage;

b. Evaluate or advise a prospective purchaser regarding existing insurance

coverage;

c. Be held out as a licensed insurer, licensed producer, or insurance expert; or

d. Be directly paid a commission or any other compensation by an insurer for the

sale of insurance, except in accordance with this chapter and chapter 26.1-58.

9. Notwithstanding any other provision of law, a travel retailer whose insurance-related

activities, and those of the travel retailer's employees and authorized representatives,

are limited to offering and disseminating travel insurance on behalf of and under the

direction of a limited lines travel insurance producer meeting the conditions in this

section, is authorized to receive related compensation, upon registration by the limited

lines travel insurance producer as described in paragraph 2 of subdivision b of

subsection 3.

10. Travel insurance may be provided under an individual policy or under a group or

blanket policy.

11. The limited lines travel insurance producer is responsible for the acts of the travel

retailer. The limited lines travel insurance producer shall ensure the travel retailer

complies with this chapter and chapter 26.1-58.

12. A person licensed in a major line of authority as an insurance producer is authorized to

sell, solicit, and negotiate travel insurance. A property and casualty insurance producer

is not required to become appointed by an insurer in order to sell, solicit, or negotiate

travel insurance.