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Regular Session, 2014 ENROLLED
SENATE BILL NO. 254
BY SENATOR MORRISH
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
* * *17
(20) "Travel insurance" shall mean that line of insurance defined in R.S.18
22:1782.1(3).19
(20)(21) "Uniform application" shall mean the current version of the NAIC20
Uniform Application for resident and nonresident producer licensing.21
(21)(22) "Uniform Business Entity Application" shall mean the current22
version of the NAIC Uniform Business Entity Application for resident and23
nonresident business entities.24
* * *25
ACT No. 117 SB NO. 254 ENROLLED
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§1547. License1
A. Unless denied licensure pursuant to R.S. 22:1554, persons who have met2
the requirements of this Subpart shall be issued an insurance producer license. An3
insurance producer may receive qualification for a license in one or more of the4
following lines of authority:5
* * *6
(9) Travel which provides insurance coverage for trip cancellation, trip7
interruption, baggage, life, sickness and accident, disability, and personal effects8
when limited to a specific trip and sold in connection with transportation provided9
by a common carrier Travel insurance as defined in R.S. 22:1782.1(3).10
* * *11
§1551. Exemption from examination12
* * *13
C. The following resident applicants shall be exempt from the requirement14
of an examination:15
* * *16
(4) Any applicant who is a ticket selling agent of a railroad company, carrier17
by air, or public bus carrier, who shall act thereunder as an insurance producer only18
in reference to the issuance of accident or baggage insurance policies in connection19
with the transportation that accompanies the transportation ticket shall be licensed20
to act only as a producer with respect to travel insurance.21
* * *22
PART VIII–B. LIMITED LINES TRAVEL INSURANCE23
§1782.1. Definitions24
As used in this Part, the following terms shall have the following25
meanings:26
(1) "Limited lines travel insurance producer" means any of the27
following:28
(a) Licensed managing general underwriter.29
(b) Licensed managing general agent or third party administrator.30 SB NO. 254 ENROLLED
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(c) Licensed insurance producer, including a limited lines producer,1
designated by an insurer as the travel insurance supervising entity as set forth2
in R.S. 22:1782.2(C).3
(2) "Offer and disseminate" means to provide general information,4
including a description of the coverage and price, as well as process the5
application, collect premiums, and perform other nonlicensable activities6
permitted by the state.7
(3)(a) "Travel insurance", except as provided in Subparagraph (b) of8
this Paragraph, means insurance coverage for personal risks incident to9
planned travel, including but not limited to the following:10
(i) Interruption or cancellation of a trip or event.11
(ii) Loss of baggage or personal effects.12
(iii) Damages to accommodations or rental vehicles.13
(iv) Sickness, accident, disability, or death occurring during travel.14
(b) "Travel insurance" shall not mean major medical plans, which15
provide comprehensive medical protection for travelers with trips lasting six16
months or longer, including those working overseas as expatriates, or military17
personnel being deployed.18
(4) "Travel retailer" means a business entity that makes, arranges, or19
offers travel services and may offer and disseminate travel insurance as a20
service to its customers on behalf of and under the direction of a limited lines21
travel insurance producer.22
§1782.2. Requirements for sale of limited lines travel insurance23
A. Notwithstanding any other provision of law to the contrary, the24
commissioner may issue to an individual or business entity that has filed with25
the commissioner an application for such limited license in a form and manner26
prescribed by the commissioner, a limited lines travel insurance producer27
license, which authorizes the limited lines travel insurance producer to sell,28
solicit, or negotiate travel insurance through a licensed insurer. The limited29
lines travel insurance producer shall pay all applicable insurance producer30 SB NO. 254 ENROLLED
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licensing fees as set forth in R.S. 22:821.1
B. At the time of licensure, the limited lines travel insurance producer2
shall establish and maintain a register, on a form prescribed by the3
commissioner, of each travel retailer that offers travel insurance on the limited4
lines producer's behalf. The register shall be maintained and updated annually5
by the limited lines travel insurance producer and shall include the name,6
address, and contact information of the travel retailer and an officer or person7
who directs or controls the travel retailer's operations, and the travel retailer's8
Federal Tax Identification Number. The limited lines travel insurance producer9
shall submit such register to the commissioner upon reasonable request. The10
limited lines producer shall also certify that the registered travel retailer is not11
in violation of 18 U.S.C. 1033.12
C. A travel retailer may offer and disseminate travel insurance under13
a limited lines travel insurance producer business entity ("licensed business14
entity") license only if the limited lines travel insurance producer or travel15
retailer provides written material to purchasers of travel insurance including16
each of the following:17
(1) A description of the material terms or the actual material terms of18
the insurance coverage.19
(2) A description of the process for filing a claim.20
(3) A description of the review or cancellation process for the travel21
insurance policy.22
(4) The identity and contact information of the insurer and limited lines23
producer.24
(5) An explanation that the purchase of travel insurance is not required25
in order to purchase any other product or service from the travel retailer.26
(6) An explanation that an unlicensed employee or representative of a27
travel retailer is permitted to provide general information about the insurance28
offered by the travel retailer, including a description of the coverage and price,29
but is not qualified or authorized to answer technical questions about the terms30 SB NO. 254 ENROLLED
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and conditions of the insurance offered by the travel retailer or to evaluate the1
adequacy of the customer's existing insurance coverage.2
D. The limited lines travel insurance producer shall designate one of its3
employees who is a licensed individual producer as the designated responsible4
producer for the limited lines travel insurance producer's compliance with the5
Louisiana travel insurance laws, rules, and regulations. The designated6
responsible producer, president, secretary, treasurer, and any other officer or7
person who directs or controls the limited lines travel insurance producer's8
insurance operations shall comply with the fingerprinting requirements9
applicable to insurance producers in the resident state of the limited lines10
insurance producer. As the insurer designee, the limited lines travel insurance11
producer is responsible for the acts of the travel retailer and shall use12
reasonable means to ensure compliance by the travel retailer with this Part.13
The limited lines travel insurance producer and any travel retailer offering and14
disseminating travel insurance under the limited lines travel insurance15
producer license shall be subject to the applicable unfair trade practice16
provisions pursuant to R.S. 22:1963 et seq.17
E. The limited lines travel insurance producer shall require each18
employee and authorized representative of the travel retailer whose duties19
include offering and disseminating travel insurance to receive a program of20
instruction or training which may be subject to review by the commissioner.21
The training material shall, at a minimum, contain instructions on the types of22
insurance offered, ethical sales practices, and required disclosures to23
prospective customers. Limited lines travel insurance producers, and those24
registered under the producers' licenses are exempt from pre-licensing and25
continuing education requirements under R.S.22:1573.26
F. A travel retailer's employee or authorized representative who is not27
licensed as an insurance producer shall not do any of the following:28
(1) Evaluate or interpret the technical terms, benefits, and conditions of29
the offered travel insurance coverage.30 SB NO. 254 ENROLLED
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(2) Evaluate or provide advice concerning a prospective purchaser's1
existing insurance coverage.2
(3) Hold himself or itself out as a licensed insurer, licensed producer, or3
insurance expert.4
§1782.3. Compensation5
Notwithstanding any other provision of law to the contrary, a travel6
retailer whose insurance-related activities, and those of its employees and7
authorized representatives, are limited to offering and disseminating travel8
insurance on behalf of and under the direction of a limited lines travel9
insurance producer meeting the conditions stated in this Part, is authorized to10
do so and receive related compensation for such services, upon registration by11
the limited lines travel insurance producer as set forth in R.S. 22:1782.2(B).12
Section 2. R.S. 22:992 is hereby repealed.13
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: