| 17 | 17 | | |
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| 18 | 18 | | Referred to Committee on INSURANCE AND REAL ESTATE |
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| 19 | 19 | | |
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| 20 | 20 | | Introduced by: |
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| 21 | 21 | | |
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| 22 | 22 | | (INS) |
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| 23 | 23 | | |
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| 24 | 24 | | AN ACT REGULATING THE OFFER AND DISSEMINATION OF TRAVEL INSURANCE. |
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| 25 | 25 | | |
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| 26 | 26 | | Be it enacted by the Senate and House of Representatives in General Assembly convened: |
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| 27 | 27 | | |
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| 28 | 28 | | Section 1. (NEW) (Effective October 1, 2016) (a) As used in this section: |
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| 29 | 29 | | |
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| 30 | 30 | | (1) "Travel insurance" means insurance, provided under an individual or a group or master insurance policy, for the following personal risks incident to planned travel: (A) Interruption or cancellation of a trip or an event; (B) loss of baggage or personal effects; (C) damage to accommodations or rental vehicles; or (D) sickness, accident, disability or death occurring during travel; |
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| 31 | 31 | | |
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| 32 | 32 | | (2) "Limited lines travel insurance producer" means a person, as defined in section 38a-1 of the general statutes, that is (A) (i) a managing general underwriter, (ii) a managing general agent or similar administrator, or (iii) an insurance producer, including a limited lines producer, licensed or authorized to do business in this state; and (B) authorized in accordance with subsection (b) of this section to sell, solicit or negotiate travel insurance to residents of this state; |
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| 33 | 33 | | |
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| 34 | 34 | | (3) "Offer and disseminate" means the provision of general information about travel insurance, including a description of the coverage and price of a travel insurance policy; the processing of an application for a travel insurance policy; the collection of a premium for a travel insurance policy; or the performance of other activities not requiring a license and permitted by the state concerning a travel insurance policy; |
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| 35 | 35 | | |
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| 36 | 36 | | (4) "Travel retailer" means a business entity that makes, arranges or offers travel services; and |
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| 37 | 37 | | |
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| 38 | 38 | | (5) "Designated travel retailer" means a travel retailer designated by a limited lines travel insurance producer to offer and disseminate travel insurance to residents of this state on such producer's behalf. |
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| 39 | 39 | | |
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| 40 | 40 | | (b) (1) (A) Any person seeking authorization as a limited lines travel insurance producer may apply to the Insurance Department, on such form and in such manner as prescribed by the Insurance Commissioner, for authorization as a limited lines travel insurance producer to sell, solicit or negotiate travel insurance through an insurance company licensed or authorized to do business in this state, provided (i) such person and insurance company has paid all applicable licensing fees required under state law, and (ii) the employee designated pursuant to subparagraph (A) of subdivision (3) of this subsection and the president, secretary, treasurer and any other officer or person who directs or controls the insurance operations of the person seeking such authorization has complied with any fingerprinting requirements applicable to insurance producers in the resident state of the person seeking such authorization. |
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| 41 | 41 | | |
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| 42 | 42 | | (B) The commissioner may approve or disapprove such application. Any such authorization shall be in force until the commissioner suspends or revokes such authorization or the commissioner suspends, revokes or refuses to renew the person's or insurance company's license or authorization to do business in this state. |
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| 43 | 43 | | |
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| 44 | 44 | | (2) Each limited lines travel insurance producer shall, at the time such application is approved by the commissioner, establish and maintain a registry, on a form prescribed by the commissioner, of its designated travel retailer or retailers. Such producer shall update the registry annually and shall include (A) the name, address and contact information of each designated travel retailer, (B) the name, address and contact information of an officer or individual who directs or controls each designated travel retailer's operations, (C) the federal tax identification number of each designated travel retailer, and (D) a certification by such producer that the designated travel retailer has not engaged in conduct prohibited under 18 USC 1033, as amended from time to time. Upon request by the commissioner, a limited lines travel insurance producer shall make such registry available during the regular business hours of such limited lines travel insurance producer to the commissioner or the commissioner's designee for inspection and examination. |
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| 45 | 45 | | |
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| 46 | 46 | | (3) (A) Each limited lines travel insurance producer shall designate an employee, who is an insurance producer licensed in this state, as the individual responsible for the limited lines travel insurance producer's compliance with the provisions of this section, including supervision of its designated travel retailers. |
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| 47 | 47 | | |
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| 48 | 48 | | (B) A limited lines travel insurance producer shall be responsible for the acts of its designated travel retailer and shall use reasonable means to ensure its designated travel retailer's compliance with this section. |
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| 49 | 49 | | |
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| 50 | 50 | | (4) Each limited lines travel insurance producer shall require each employee and authorized representative of its designated travel retailer to receive instruction or training on the offer and dissemination of travel insurance. Such instruction or training may be subject to review by the commissioner and shall include, at a minimum, information about the types of travel insurance offered through the travel retailer, ethical sales practices and required disclosures to prospective customers. |
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| 51 | 51 | | |
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| 52 | 52 | | (5) Each limited lines travel insurance producer or designated travel retailer shall provide to purchasers of a travel insurance policy (A) a description of or a copy of the material terms of such policy, (B) a description of the process for filing a claim under such policy, (C) a description of the process for the review or cancellation of such policy, and (D) the identity of and contact information for the insurance company issuing such policy and the limited lines travel insurance producer. |
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| 53 | 53 | | |
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| 54 | 54 | | (c) (1) A travel retailer that does not employ a licensed insurance producer or is not licensed or authorized to transact the business of insurance in this state may offer and disseminate travel insurance to residents of this state, provided (A) it is a designated travel retailer, and (B) its travel insurance-related activities are limited to those authorized under this section. |
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| 55 | 55 | | |
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| 56 | 56 | | (2) A travel retailer shall make available to prospective customers brochures or other written materials that (A) provide the identity of and contact information for the insurance company issuing the travel insurance policy and the limited lines travel insurance producer, (B) explain that the purchase of travel insurance is not required to purchase any other product or service from the travel retailer, and (C) explain that such travel retailer is permitted to provide general information about the travel insurance offered through the travel retailer, including a description of the coverage and price, but is not qualified or authorized to answer questions about the terms and conditions of such insurance or evaluate the adequacy of the prospective customer's existing insurance coverage. |
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| 57 | 57 | | |
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| 58 | 58 | | (3) A designated travel retailer may receive compensation from a limited lines travel insurance producer or the insurance company issuing a travel insurance policy, for services related to the offer and dissemination of travel insurance, as agreed to by such designated travel retailer and such limited lines travel insurance producer or insurance company. |
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| 59 | 59 | | |
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| 60 | 60 | | (4) No employee or authorized representative of a travel retailer shall be required to be licensed as an insurance producer, provided no such employee or authorized representative (A) evaluates or interprets the terms, benefits or conditions of travel insurance offered by the travel retailer, (B) evaluates or provides advice regarding a prospective customer's existing insurance coverage, or (C) holds himself or herself out as a licensed insurance producer or an insurance expert. |
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| 61 | 61 | | |
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| 62 | 62 | | (d) (1) A violation of this section by a limited lines travel insurance producer shall be deemed an unfair or deceptive insurance practice under section 38a-816 of the general statutes. |
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| 63 | 63 | | |
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| 64 | 64 | | (2) A violation of this section by a travel retailer shall be deemed an unfair or deceptive trade practice under subsection (a) of section 42-110b of the general statutes. |
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| 65 | 65 | | |
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| 66 | 66 | | |
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| 67 | 67 | | |
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| 68 | 68 | | |
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| 69 | 69 | | This act shall take effect as follows and shall amend the following sections: |
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| 70 | 70 | | Section 1 October 1, 2016 New section |
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| 71 | 71 | | |
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| 72 | 72 | | This act shall take effect as follows and shall amend the following sections: |
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| 73 | 73 | | |
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| 74 | 74 | | Section 1 |
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| 75 | 75 | | |
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| 76 | 76 | | October 1, 2016 |
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| 77 | 77 | | |
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| 78 | 78 | | New section |
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| 79 | 79 | | |
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| 80 | 80 | | |
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| 81 | 81 | | |
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| 82 | 82 | | INS Joint Favorable |
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