Morrish (SB 254) Act No. 117
Prior law provided for the definition of limited lines insurance and limited lines producer.
Provided 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. Exempted 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.
New law deletes prior 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.
New 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.
New 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.
New 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.
(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.
New 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 prior law.
New 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.
New 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.
New 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 new
law to receive related compensation for such services upon the registration by the producer
as set forth in new law.
Prior law defined 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. New 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)