Modifies provisions relating to travel insurance
The enactment of SB 1116 is expected to create a more structured approach to the sale and distribution of travel insurance within the state. It emphasizes the need for transparency in the relationship between travel insurers and retailers, ensuring consumers are adequately informed about the terms and conditions of the insurance they are purchasing. By setting specific guidelines on how travel insurance can be marketed and sold, the bill aims to protect consumers from unfair trade practices, particularly when it comes to understanding the nature of the coverages offered.
Senate Bill 1116 aims to revise the existing travel insurance provisions outlined in section 375.159, RSMo. The bill introduces new definitions for terms such as 'aggregator site', 'blanket travel insurance', and 'cancellation fee waiver', establishing a framework aiming to enhance the clarity and regulation of travel insurance policies. Notably, the bill aims to provide a clearer delineation between insurance coverage and travel assistance services, which are distinctly defined to exclude travel assistance from being categorized as insurance.
While there is general support for the improved regulations proposed in SB 1116, key points of contention may arise regarding the implications for travel retailers and insurers. Critics could express concerns that the requirements for disclosing additional information may add complexity and burden to the sales process for travel agents, potentially stifling sales and innovation in the travel insurance market. Additionally, the delineation between travel insurance and travel assistance might lead to debates over what services are included and the potential impact on frameworks currently used in the industry.