An Act Regulating The Offer And Dissemination Of Travel Insurance.
Impact
The implications of SB00369 on state laws are significant as it introduces structured regulation over travel insurance products. Previously, the market for travel insurance was less regulated, which may have led to variability in consumer protection. By necessitating that travel retailers follow specific guidelines and be designated by limited lines travel insurance producers, the bill aims to mitigate issues of misinformation and ensure that customers understand the coverage they are purchasing. This shift is expected to provide greater consumer security in the travel insurance market.
Summary
SB00369 is an act that regulates the offer and dissemination of travel insurance within the state. The legislation establishes the parameters for what constitutes travel insurance and outlines the requirements for travel retailers and limited lines travel insurance producers. The aim is to create a clearer framework for how travel insurance can be marketed and sold, offering more protection to consumers by ensuring compliance with state regulations. This act is set to take effect on October 1, 2016, providing a clear mandate for insurance companies and retailers involved in the travel insurance market.
Sentiment
The general sentiment around SB00369 is supportive among those advocating for consumer rights and fair practices in insurance. Proponents argue that the regulation is a necessary measure to protect consumers from potentially deceptive practices in the travel insurance industry. However, there may be concerns from some businesses regarding the increased regulatory burden that could arise from these new requirements. Overall, the discussions highlight a balance between fostering a competitive business environment while ensuring consumer protection.
Contention
Notable points of contention include how the regulations may affect smaller travel retailers who may struggle to comply with the new requirements. There are also concerns regarding the training and licensing obligations placed on employees of designated travel retailers, as these may be seen as potential barriers to entry for smaller firms. The approach of limiting the roles of travel retailers in the insurance sale process has been debated, underscoring the ongoing conflict between comprehensive regulation and the desire for a flexible market.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.