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Regular Session, 2014
SENATE BILL NO. 254
BY SENATOR MORRISH
LIABILITY INSURANCE. Provides relative to travel insurance. (8/1/14)
AN ACT1
To amend and reenact R.S. 22:1542(20) and (21), 1547(A)(9), and 1551(C)(4), to enact R.S.2
22:1542(22) and Part VIII-B of Chapter 5 of Title 22 of the Louisiana Revised3
Statutes of 1950, to be comprised of R.S. 22:1782.1 through 1782.3, and to repeal4
R.S. 22:992, relative to travel insurance; to provide with respect to definitions; to5
provide for the regulation of travel insurance producers; to provide with respect to6
the requirements for a travel retailer to offer travel insurance under a limited lines7
travel insurance producer business entity; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 22:1542(20) and (21), 1547(A)(9), and 1551(C)(4) are hereby10
amended and reenacted and R.S. 22:1542(22) and Part VIII-B of Chapter 5 of Title 22 of the11
Louisiana Revised Statutes of 1950, to be comprised of R.S. 22:1782.1 through 1782.3, are12
hereby enacted to read as follows:13
§1542. Definitions14
As used in this Subpart, unless the context requires otherwise, the following15
definitions shall be applicable:16
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(20) "Travel insurance" shall mean that line of insurance defined in R.S.1
22:1782.1(3).2
(20)(21) "Uniform application" shall mean the current version of the NAIC3
Uniform Application for resident and nonresident producer licensing.4
(21)(22) "Uniform Business Entity Application" shall mean the current5
version of the NAIC Uniform Business Entity Application for resident and6
nonresident business entities.7
* * *8
§1547. License9
A. Unless denied licensure pursuant to R.S. 22:1554, persons who have met10
the requirements of this Subpart shall be issued an insurance producer license. An11
insurance producer may receive qualification for a license in one or more of the12
following lines of authority:13
* * *14
(9) Travel which provides insurance coverage for trip cancellation, trip15
interruption, baggage, life, sickness and accident, disability, and personal effects16
when limited to a specific trip and sold in connection with transportation provided17
by a common carrier Travel insurance as defined in R.S. 22:1782.1(3).18
* * *19
§1551. Exemption from examination20
* * *21
C. The following resident applicants shall be exempt from the requirement22
of an examination:23
* * *24
(4) Any applicant who is a ticket selling agent of a railroad company, carrier25
by air, or public bus carrier, who shall act thereunder as an insurance producer only26
in reference to the issuance of accident or baggage insurance policies in connection27
with the transportation that accompanies the transportation ticket shall be licensed28
to act only as a producer with respect to travel insurance.29 SB NO. 254
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* * *1
PART VIII–B. LIMITED LINES TRAVEL INSURANCE2
§1782.1. Definitions3
As used in this Part, the following terms shall have the following4
meanings:5
(1) "Limited lines travel insurance producer" means any of the6
following:7
(a) Licensed managing general underwriter.8
(b) Licensed managing general agent or third party administrator.9
(c) Licensed insurance producer, including a limited lines producer,10
designated by an insurer as the travel insurance supervising entity as set forth11
in R.S. 22:1782.2(C).12
(2) "Offer and disseminate" means to provide general information,13
including a description of the coverage and price, as well as process the14
application, collect premiums, and perform other non-licensable activities15
permitted by the state.16
(3)(a) "Travel insurance", except as provided in Subparagraph (3)(b) of17
this Section means insurance coverage for personal risks incident to planned18
travel, including but not limited to the following:19
(i) Interruption or cancellation of a trip or event.20
(ii) Loss of baggage or personal effects.21
(iii) Damages to accommodations or rental vehicles.22
(iv) Sickness, accident, disability, or death occurring during travel.23
(b) "Travel insurance" shall not mean major medical plans, which24
provide comprehensive medical protection for travelers with trips lasting six25
months or longer, including those working overseas as expatriates, or military26
personnel being deployed.27
(4) "Travel retailer" means a business entity that makes, arranges, or28
offers travel services and may offer and disseminate travel insurance as a29 SB NO. 254
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service to its customers on behalf of and under the direction of a limited lines1
travel insurance producer.2
§1782.2. Requirements for sale of limited lines travel insurance3
A. Notwithstanding any other provision of law to the contrary, the4
commissioner may issue to an individual or business entity that has filed with5
the commissioner an application for such limited license in a form and manner6
prescribed by the commissioner, a limited lines travel insurance producer7
license, which authorizes the limited lines travel insurance producer to sell,8
solicit, or negotiate travel insurance through a licensed insurer. The limited9
lines travel insurance producer shall pay all applicable insurance producer10
licensing fees as set forth in R.S. 22:821.11
B. At the time of licensure, the limited lines travel insurance producer12
shall establish and maintain a register, on a form prescribed by the13
commissioner, of each travel retailer that offers travel insurance on the limited14
lines producer's behalf. The register shall be maintained and updated annually15
by the limited lines travel insurance producer and shall include the name,16
address, and contact information of the travel retailer and an officer or person17
who directs or controls the travel retailer's operations, and the travel retailer's18
Federal Tax Identification Number. The limited lines travel insurance producer19
shall submit such register to the commissioner upon reasonable request. The20
limited lines producer shall also certify that the registered travel retailer is not21
in violation of 18 U.S.C. 1033.22
C. A travel retailer may offer and disseminate travel insurance under23
a limited lines travel insurance producer business entity ("licensed business24
entity") license only if the limited lines travel insurance producer or travel25
retailer provides written material to purchasers of travel insurance including26
each of the following:27
(1) A description of the material terms or the actual material terms of28
the insurance coverage.29 SB NO. 254
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(2) A description of the process for filing a claim.1
(3) A description of the review or cancellation process for the travel2
insurance policy.3
(4) The identity and contact information of the insurer and limited lines4
producer.5
(5) An explanation that the purchase of travel insurance is not required6
in order to purchase any other product or service from the travel retailer.7
(6) An explanation that an unlicensed employee or representative of a8
travel retailer is permitted to provide general information about the insurance9
offered by the travel retailer, including a description of the coverage and price,10
but is not qualified or authorized to answer technical questions about the terms11
and conditions of the insurance offered by the travel retailer or to evaluate the12
adequacy of the customer's existing insurance coverage.13
D. The limited lines travel insurance producer shall designate one of its14
employees who is a licensed individual producer as the designated responsible15
producer for the limited lines travel insurance producer's compliance with the16
Louisiana travel insurance laws, rules, and regulations. The designated17
responsible producer, president, secretary, treasurer, and any other officer or18
person who directs or controls the limited lines travel insurance producer's19
insurance operations shall comply with the fingerprinting requirements20
applicable to insurance producers in the resident state of the limited lines21
insurance producer. As the insurer designee, the limited lines travel insurance22
producer is responsible for the acts of the travel retailer and shall use23
reasonable means to ensure compliance by the travel retailer with this Part.24
The limited lines travel insurance producer and any travel retailer offering and25
disseminating travel insurance under the limited lines travel insurance26
producer license shall be subject to the applicable unfair trade practice27
provisions pursuant to R.S. 22:1963 et seq.28
E. The limited lines travel insurance producer shall require each29 SB NO. 254
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employee and authorized representative of the travel retailer whose duties1
include offering and disseminating travel insurance to receive a program of2
instruction or training which may be subject to review by the commissioner.3
The training material shall, at a minimum, contain instructions on the types of4
insurance offered, ethical sales practices, and required disclosures to5
prospective customers. Limited lines travel insurance producers, and those6
registered under the producers' licenses are exempt from pre-licensing and7
continuing education requirements under R.S.22:1573.8
F. A travel retailer's employee or authorized representative who is not9
licensed as an insurance producer shall not do any of the following:10
(1) Evaluate or interpret the technical terms, benefits, and conditions of11
the offered travel insurance coverage.12
(2) Evaluate or provide advice concerning a prospective purchaser's13
existing insurance coverage.14
(3) Hold himself or itself out as a licensed insurer, licensed producer, or15
insurance expert.16
§1782.3. Compensation17
Notwithstanding any other provision of law to the contrary, a travel18
retailer whose insurance-related activities, and those of its employees and19
authorized representatives, are limited to offering and disseminating travel20
insurance on behalf of and under the direction of a limited lines travel21
insurance producer meeting the conditions stated in this Part, is authorized to22
do so and receive related compensation for such services, upon registration by23
the limited lines travel insurance producer as set forth in R.S. 22:1782.2(B).24
Section 2. R.S. 22:992 is hereby repealed.25 SB NO. 254
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The original instrument was prepared by Cheryl Horne. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Linda Nugent.
DIGEST
Morrish (SB 254)
Present law provides for the definition of limited lines insurance and limited lines producer.
Provides for an insurance producer to receive qualification for a license to issue travel
insurance coverage for trip cancellation, trip interruption, baggage, life, sickness and
accident, disability, and personal effects when limited to a specific trip and sold in
connection with transportation provided by a common carrier. Exempts from the
requirement of an examination, any applicant who is a ticket selling agent of a railroad
company, carrier by air, or public bus carrier, who shall act thereunder as an insurance
producer only in reference to the issuance of accident or baggage insurance policies in
connection with the transportation ticket.
Proposed law deletes present law and defines travel insurance as coverage for personal risks
incident to planned travel, including:
(1)Interruption or cancellation of a trip or event.
(2)Loss of baggage or personal effects.
(3)Damages to accommodations or rental vehicles.
(4)Sickness, accident, disability, or death occurring during travel.
Proposed law defines a limited lines travel insurance producer (producer) as a:
(1)Licensed managing general underwriter.
(2)Licensed managing general agent or third party administrator.
(3)Licensed insurance producer, including a limited lines producer, designated by an
insurer as the travel insurance supervising entity.
Proposed law allows the commissioner to issue to an individual or business entity, who has
submitted an application, a limited lines travel insurance producer license which authorizes
the producer to sell, solicit, or negotiate travel insurance through a licensed insurer.
Provides that the producer shall establish and maintain a register of each travel retailer
(retailer) that offers travel insurance on the producer's behalf including the name, address,
and contact information of the retailer and an officer or person who directs or controls the
retailer's operations.
Proposed law requires the producer or retailer to provide written material to the purchasers
of travel insurance including the following:
(1)A description of the material terms or the actual material terms of the insurance
coverage.
(2)A description of the process for filing a claim.
(3)A description of the review or cancellation process for the travel insurance policy.
(4)The identity and contact information of the insurer and limited lines producer. SB NO. 254
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(5)An explanation that the purchase of travel insurance is not required in order to
purchase any other product or service from the travel retailer.
(6)An explanation that an unlicensed employee or representative of a travel retailer is
permitted to provide general information about the insurance offered by the travel
retailer, including a description of the coverage and price, but is not qualified or
authorized to answer technical questions about the terms and conditions of the
insurance offered by the travel retailer or to evaluate the adequacy of the customer's
existing insurance coverage.
Proposed law requires a producer to designate one of its employees, who is a licensed
individual producer, as the designated responsible producer for the limited lines travel
insurance producer's compliance with La. travel insurance laws, rules, and regulations.
Requires anyone who directs or controls the producer's operations to comply with the
fingerprinting requirements applicable to the producer's resident state. Requires producers
and retailers to be subject to the applicable unfair trade practice provisions as provided in
present law.
Proposed law requires the producer to provide a program of instruction or training to each
employee and authorized representative of the retailer. The training material shall, at a
minimum, contain instructions on the types of insurance offered, ethical sales practices, and
required disclosures to prospective customers. Exempts any producer and those registered
under its license from pre-licensing and continuing education requirements in present law.
Proposed law prohibits a travel retailer's employee or authorized representative who is not
licensed as a producer from evaluating or interpreting technical terms, benefits, and
conditions of the offered travel insurance coverage, providing advice concerning a
prospective purchaser's existing insurance coverage or holding himself or itself out as a
licensed insurer, producer, or insurance expert.
Proposed law permits a travel retailer whose insurance-related activities, and those of its
employees and authorized representatives, are limited to offering and disseminating travel
insurance on behalf of and under the direction of a producer meeting the conditions of
proposed law to receive related compensation for such services upon the registration by the
producer as set forth in proposed law.
Present law defines a transportation ticket policy, which may be issued by a health and
accident insurer, as any ticket policy sold at stations, ticket offices, or travel bureaus by
employees of railroads, steamship lines, airlines, and other common carriers, or by
individuals or employees of persons engaged in selling transportation on such common
carriers, having as its dominant feature the protection of the insured from a transportation
hazard.
Proposed law repeals the transportation ticket policy definition.
Effective August 1, 2014.
(Amends R.S. 22:1542(20) and (21), 1547(A)(9), and 1551(C)(4); adds R.S. 22:1542(22)
and 1782.1 - 1782.3; repeals R.S. 22:992)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the original
bill
1. Makes technical corrections. SB NO. 254
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Senate Floor Amendments to engrossed bill
1. Technical amendments by Legislative Bureau.