Bill Text: CA AB3104 | 2023-2024 | Regular Session | Amended

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Bill Title: California Travel Insurance Act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-17 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 0.) (April 17). Re-referred to Com. on APPR. [AB3104 Detail]

Download: California-2023-AB3104-Amended.html

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Amended  IN  Assembly  April 09, 2024

Amended  IN  Assembly  March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 3104

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Introduced by Assembly Member Valencia

February 16, 2024

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An act to amend Sections 1752, 1753, and 1754 Section 1753 of, and to add Sections 1751.8, 1751.9, 1756.1, 1756.2, 1756.3, 1756.4, and 1756.5 and 1756.4 of, the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL'S DIGEST

AB 3104, as amended, Valencia. California Travel Insurance Act.

Existing law authorizes the Insurance Commissioner to issue a limited lines travel insurance agent license to any organization engaged in transacting travel insurance through travel retailers that do not meet other specified requirements. Existing law requires the transaction of travel insurance under the license of an organization holding a limited lines travel insurance agent license to be subject to specified conditions, including that a limited lines travel insurance agent may authorize a travel retailer to transact travel insurance if the limited lines travel insurance agent is clearly identified on marketing materials and fulfillment packages distributed by travel retailers to customers. Existing law requires an applicant for a limited lines travel insurance agent license to submit specified documents to the commissioner, including a written application for licensure signed by the applicant or officer of the applicant. Existing law requires the person or organization licensed pursuant to these provisions to pay the costs associated with any enforcement action.

This bill would enact the California Travel Insurance Act and would revise and recast these provisions by, among other things, expanding and modifying definitions, including adding to the definition of travel insurance for coverage for personal risks emergency evacuation and the repatriation of remains. The bill would additionally authorize the commissioner to issue a limited lines travel insurance agent license to an individual engaged in transacting travel insurance through travel retailers that do not meet other specified requirements.

The bill would require the transaction of travel insurance under the license of an individual or organization holding a limited lines travel insurance agent license to be subject to specified conditions, including that a limited lines travel insurance agent may authorize a travel retailer to transact travel insurance if the limited line travel insurance agent or travel retailer provides specified information to purchasers of travel insurance, including descriptions of the material terms of the coverage and the process for filing a claim. The bill would also authorize a person licensed in a major line of authority as an insurance agent to sell, solicit, negotiate, and otherwise transact travel insurance and would not require a property and casualty insurance agent to become appointed by an insurer in order to do so.

The bill would require a travel insurer to pay premium tax on travel insurance premiums paid by specified individuals, including primary certificate holders under a group travel insurance policy and individual primary policyholders, who are residents of this state. The bill would require a travel insurer to document the state of residence of the policyholder or certificate holder and report as premium only the amount allocable to travel insurance.

The bill would also authorize travel protection plans, as defined, to be offered for one price for the combined features of the plan if specified conditions are met, including that the plan clearly discloses to the consumer that it includes travel insurance, travel assistance services, as defined, and cancellation fee waivers, as defined, at or prior to the time of purchase and the fulfillment materials, as defined, describe the included services in the plan and include the travel insurance disclosures and contact information for those providing the services.

The bill would require a person offering travel insurance to be subject to existing provisions governing unfair trade practices regarding the business of insurance and would require the documents provided to consumers prior to the purchase of travel insurance to be consistent with the policy itself. The bill would require the fulfillment materials, as defined, to be provided to a policyholder or certificate holder as soon as practicable. The bill would authorize the policyholder or certificate holder to cancel a policy or certificate for a full refund from the date of purchase of a travel protection plan until certain specified dates, including 15 days following the date of delivery, as defined, of the plan’s fulfillment materials by postal mail. The bill would also expressly prohibit a person transacting travel insurance or travel protection plans from using a negative option or opt out requiring an affirmative action to deselect coverage.

The bill would prohibit a person from representing themselves as a travel administrator, as defined, unless the individual is a licensed property and casualty insurance agent or holds other specified licenses, including a valid managing general agent license. The bill would hold an insurer responsible for the acts of a travel administrator, administrative travel insurance underwritten by the insurer, and for the travel administrator maintaining all books and records relevant to the insurer. The bill would require the travel administrator to make those records available to the commissioner upon request.

The bill would require travel insurance, for the purposes of rates and forms, be classified and filed under an inland marine line of insurance, and for the purpose of providing coverage for other specified risks, would authorize travel insurance to be filed under either an inland marine or accident and health line of insurance.

The bill would state the purpose of the above provisions would be to promote the public welfare by creating a comprehensive legal framework within which travel insurance may be sold in the state and would require the above provisions to supersede general provisions of law otherwise applicable to travel insurance.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 1751.8 is added to the Insurance Code, immediately preceding Section 1752, to read:

1751.8.

 This article shall be known, and may be cited, as the California Travel Insurance Act.

SEC. 2.

 Section 1751.9 is added to the Insurance Code, to read:

1751.9.

 (a) The purpose of this article is to promote the public welfare by creating a comprehensive legal framework within which travel insurance may be sold in this state.

(b) The provisions of this article shall apply to all of the following:

(1) Travel insurance covering a resident of this state.

(2) Travel insurance sold, solicited, negotiated, or offered in this state.

(3) Policies and certificates delivered or issued for delivery in this state.

(c) The provisions of this article shall not apply to cancellation fee waivers or travel assistance services, except as expressly provided.

(d) All other applicable provisions of this code shall continue to apply to travel insurance except that the specific provisions of this article shall supersede any general provisions of law that would otherwise be applicable to travel insurance.

SEC. 3.Section 1752 of the Insurance Code is amended to read:

1752.

The commissioner may issue a limited lines travel insurance agent license to an individual or organization engaged in transacting travel insurance through travel retailers not otherwise meeting the conditions set forth in Section 1754.

SEC. 4.SEC. 3.

 Section 1753 of the Insurance Code is amended to read:

1753.

 As used in this article, the following terms have the following meanings:

(a) “Aggregator site” means an internet website that provides access to information regarding insurance products from more than one insurer, including product and insurer information, for use in comparison shopping.

(b) “Blanket travel insurance” means a policy of travel insurance issued to an eligible group providing coverage for specific classes of persons defined in the policy, with coverage provided to all members of the eligible group without a separate charge to each individual member.

(c) “Cancellation fee waiver” means a contractual agreement between a supplier of travel services and its customer to waive some or all of the nonrefundable cancellation fee provisions of the supplier’s underlying travel contract with or without regard to the reason for the cancellation or form of reimbursement. A cancellation fee waiver is not insurance.

(d) “Eligible group” means two or more persons engaged in a common enterprise, or who have an economic, educational, or social affinity or relationship. An eligible group may include, but is not limited to, any of the following:

(1) An entity engaged in the business of providing travel or travel services, including, but not limited to, tour operators, lodging providers, vacation property owners, hotels and resorts, travel clubs, travel agencies, property managers, cultural exchange programs, and common carriers, or the operator, owner, or lessor of a means of transportation of passengers, including, but not limited to, airlines, cruise lines, railroads, steamship companies, and public bus carriers, wherein, with regard to a particular travel or type of travel or travelers, all members or customers of the group have a common exposure to risk by such travel.

(2) A college, school, or other institution of learning covering students, teachers, employees, or volunteers.

(3) An employer covering a group of employees, volunteers, contractors, board of directors, dependents, or guests.

(4) A sports team, camp, or sponsor thereof, covering participants, members, campers, employees, officials, supervisors, or volunteers.

(5) A religious, charitable, recreational, educational, or civic organization, or branch thereof, covering a group of members, participants, or volunteers.

(6) A financial institution or financial institution vendor, or parent holding company, trustee, or agent of, or designated by, one or more financial institutions or financial institution vendors, including account holders, credit card holders, debtors, guarantors, or purchasers.

(7) An incorporated or unincorporated association, including labor unions, having a common interest, constitution, and bylaws, and organized and maintained in good faith for purposes other than obtaining insurance for members or participants of the association covering its members.

(8) A trust or the trustees of a fund established, created, or maintained for the benefit of and covering members, employees, or customers, subject to the commissioner’s permitting the use of a trust and the state’s premium tax provisions in Section 1756.1 of one or more associations meeting the requirements of paragraph (7).

(9) An entertainment production company covering a group of participants, volunteers, audience members, contestants, or workers.

(10) A volunteer fire department, ambulance, rescue, police, court, first aid, civil defense, or other volunteer group.

(11) A preschool, daycare institution for children or adults, and senior citizen clubs.

(12) An automobile or truck rental or leasing company covering a group of individuals who may become renters, lessees, or passengers defined by their travel status on the rented or leased vehicles. The common carrier, operator, owner, or lessor of a means of transportation, or the automobile or truck rental or leasing company, is the policyholder under a policy to which this section applies.

(13) Any other group for which the commissioner has determined that the members are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, and that issuance of the policy would not be contrary to the public interest.

(e) “Fulfillment materials” means documentation sent to the purchaser of a travel protection plan confirming the purchase and providing the travel protection plan’s coverage and assistance details.

(f) “Group travel insurance” means travel insurance issued to an eligible group under which individuals of that group may elect to be covered at the individual’s own expense.

(g) “Limited lines travel insurance agent” means any of the following:

(1) A licensed managing general agent or third-party administrator.

(2) A licensed insurance agent, including a limited lines agent.

(3) A travel administrator.

(4) An insurer designee that is licensed to transact travel insurance, as defined in subdivision (j).

(h) “Primary certificate holder” means an individual who elects and purchases travel insurance under a group travel insurance policy.

(i) “Primary policyholder” means an individual who elects and purchases individual travel insurance.

(j) “Transact” means, for the purposes of this article, the following activities when engaged in by a travel retailer:

(1) Offering and disseminating information to a prospective or current policyholder on behalf of a limited lines travel insurance agent, including brochures, buyer guides, descriptions of coverage, and price.

(2) Referring specific questions regarding coverage features and benefits from a prospective or current policyholder to a limited lines travel insurance agent.

(3) Disseminating and processing applications for coverage, coverage selection forms, or other similar forms in response to a request from a prospective or current policyholder.

(4) Collecting premiums from a prospective or current policyholder on behalf of a limited lines travel insurance agent.

(5) Receiving and recording information from a policyholder to share with a limited lines travel insurance agent.

(k) “Travel administrator” means a person who directly or indirectly underwrites, collects charges, collateral or premiums from, or adjusts or settles claims on residents of this state in connection with travel insurance. A person shall not be considered a travel administrator if that person’s only actions that would otherwise cause it to be considered a travel administrator would fall into any of the following categories:

(1) A person working for a travel administrator to the extent that the person’s activities are subject to the supervision and control of the travel administrator.

(2) An insurance agent selling insurance or engaged in administrative and claims-related activities within the scope of the agent’s license.

(3) A travel retailer offering and disseminating travel insurance and that is registered under the license of a limited lines travel insurance agent in accordance with this article.

(4) An individual adjusting or settling claims in the normal course of that individual’s practice or employment as an attorney and who does not collect charges or premiums in connection with insurance coverage.

(5) A business entity that is affiliated with a licensed insurer while acting as a travel administrator for the direct and assumed insurance business of an affiliated insurer.

(l) “Travel assistance services” means noninsurance services for which the consumer is not indemnified based on a fortuitous event, and when providing the service does not result in transfer or shifting of risk that would constitute the business of insurance. Travel assistance services include, but are not limited to, security advisories, destination information, vaccination and immunization information services, travel reservation services, entertainment, activity and event planning, translation assistance, emergency messaging, international legal and medical referrals, medical case monitoring, coordination of transportation arrangements, emergency cash transfer assistance, medical prescription replacement assistance, passport and travel document replacement assistance, lost luggage assistance, concierge services, and any other service that is furnished in connection with planned travel. Travel assistance services are not insurance and not related to insurance.

(m) (1) “Travel insurance” means insurance coverage for personal risks incidental to planned travel, including one or more of the following:

(A) Interruption or cancellation of a trip or event.

(B) Loss of baggage or personal effects.

(C) Damages to accommodations or rental vehicles.

(D) Sickness, accident, disability, or death occurring during travel.

(E) Emergency evacuation.

(F) Repatriation of remains.

(G) Any other contractual obligations to indemnify or pay a specified amount to the traveler upon determinable contingencies related to travel as approved by the commissioner.

(2) Travel insurance does not include major medical plans, which provide comprehensive medical protection for travelers with trips lasting six months or longer, including, for example, those working overseas as an expatriate or military personnel being deployed, or any other product that requires a specific insurance agent license.

(3) Travel insurance does not include damage waiver contracts, as defined in subdivision (g) of Section 1939.01 of the Civil Code. The phrase “damage waiver” or “collision damage waiver” cannot be used to describe travel insurance coverage, but the insurance contract may otherwise refer to “damage waiver” or “collision damage waiver” provided by a rental company, as defined in subdivision (a) of Section 1939.01 of the Civil Code.

(n) “Travel protection plan” means a plan that provides one or more of the following:

(1) Travel insurance.

(2) Travel assistance services.

(3) Cancellation fee waivers.

(o) “Travel retailer” means a business organization that makes, arranges, or offers planned travel and may transact travel insurance as a service to its customers on behalf of and under the direction of a limited lines travel insurance agent.

SEC. 5.Section 1754 of the Insurance Code is amended to read:

1754.

Transaction of travel insurance under the license of an individual or organization holding a limited lines travel insurance agent license shall be subject to the following conditions:

(a)A limited lines travel insurance agent may authorize a travel retailer to transact travel insurance on behalf of and under its authority under the following conditions:

(1)The limited lines travel insurance agent or travel retailer provides to purchasers of travel insurance all of the following:

(A)A description of the material terms or the actual material terms of the insurance coverage.

(B)A description of the process for filing a claim.

(C)A description of the review or cancellation process for the travel insurance policy.

(D)The agent’s name, business address, email address, telephone number, and license number, and the availability of the department’s toll-free consumer hotline.

(2)The limited lines travel insurance agent, at the time of licensure and thereafter, maintains a register noting each travel retailer that transacts travel insurance on the licensee’s behalf. The register shall be maintained and updated annually by the licensee in a form prescribed by, or format acceptable to, the commissioner and shall include the name and contact information of the travel retailer and an officer or person who directs or controls the travel retailer’s operations, and the travel retailer’s federal employer identification number (FEIN). The licensee shall also certify that the registered travel retailer complies with Section 1033 of Title 18 of the United States Code. The licensee shall submit the register for review and inspection upon request by the department.

(3)The limited lines travel insurance agent has designated one of its employees to be responsible for its compliance with the insurance laws, rules, and regulations of the state. The limited lines travel insurance agent and its designated responsible employees shall hold limited lines travel insurance agent licenses.

(4)The employee designated by the limited lines travel insurance agent, pursuant to paragraph (3), and any of the organization’s partners, members, controlling persons, officers, directors, and managers comply with the background check requirements as required by the commissioner.

(5)The limited lines travel insurance agent has paid all applicable licensing fees required under California law.

(6)The limited lines travel insurance agent uses all reasonable means at its disposal to ensure compliance by the travel retailer and the travel retailer’s employees with their obligations under this article. This includes requiring each employee of the travel retailer whose duties include transacting travel insurance to receive training. The training shall be provided whenever there is a material change that requires a modification to the training materials, but in no event less frequently than every three years. Training materials used by or on behalf of the limited lines travel insurance agent to train the employees of a travel retailer shall be submitted to the department at the time the travel insurance agent applies for a license under this article, and whenever modified thereafter. The training materials, at a minimum, should contain instruction on the types of insurance offered, ethical sales practices, and disclosures to prospective insurance customers. Any changes to previously submitted training materials shall be submitted to the department with the changes highlighted 30 days prior to their use by the limited lines travel insurance agent. Training materials and changes to those materials submitted to the department pursuant to this subdivision shall be deemed approved for use by the limited lines travel insurance agent unless it is notified by the department to the contrary. Failure by a limited lines travel insurance agent to submit training materials or changes for departmental review or use of unapproved or disapproved training materials shall constitute grounds for denial of an application for a license, nonrenewal of a license, or suspension of a license, or other action as deemed appropriate by the commissioner.

(7)The limited lines travel insurance agent or the travel retailer provides disclosure to the consumer, in either the marketing materials or fulfillment materials, that is substantively similar to the following:

This plan provides insurance coverage that only applies during the covered trip. You may have coverage from other sources that provides you with similar benefits but may be subject to different restrictions depending upon your other coverages. You may wish to compare the terms of this policy with your existing life, health, home, and automobile insurance policies. If you have any questions about your current coverage, call your insurer or insurance agent or broker.

(8)The limited lines travel insurance agent or the travel retailer makes all of the following disclosures to the prospective insured, which shall be acknowledged in writing by the purchaser or displayed by clear and conspicuous signs that are posted at every location where contracts are executed, including, but not limited to, the counter where the purchaser signs the service agreement, or provided in writing to the purchaser:

(A)That purchasing travel insurance is not required in order to purchase any other product or service offered by the travel retailer.

(B)If not individually licensed, that the travel retailer’s employee is not qualified or authorized to:

(i)Answer technical questions about the benefits, exclusions, and conditions of any of the insurance offered by the travel retailer.

(ii)Evaluate or provide advice concerning the adequacy of the prospective insured’s existing insurance coverage.

(iii)Evaluate or interpret the technical terms, benefits, and conditions of the offered travel insurance coverage.

(iv)Hold themselves out as a licensed insurer, licensed agent, or insurance expert.

(b)A travel retailer and its employees and authorized representatives that meet the requirements set forth in this section and whose activities are limited to transacting travel insurance on behalf of a licensed limited lines travel insurance agent are authorized to receive compensation.

(c)(1)If the commissioner determines that a travel retailer, or a travel retailer’s employee, has violated any provision of this article or any other provision of this code, the commissioner may:

(A)Direct the limited lines travel insurance agent to implement a corrective action plan with the travel retailer.

(B)Direct the limited lines travel insurance agent to revoke the authorization of the travel retailer to transact travel insurance on its behalf and under its license and to remove the travel retailer’s name from its register.

(2)If the commissioner determines that a travel retailer, or a travel retailer’s employee, has violated any provision in this article or any other provision of this code, the commissioner, after notice and hearing, may:

(A)Suspend or revoke the license of the limited lines travel insurance agent as authorized under this code.

(B)Impose a monetary fine on the limited lines travel insurance agent.

(3)A limited lines travel insurance agent who aids and abets a travel retailer in the transaction of travel insurance, as defined in this code, or aids and abets a travel retailer in any activity concerning travel insurance after being directed to revoke the travel retailer’s authorization, in addition to any other action authorized under this code, shall be subject to a monetary penalty pursuant to paragraph (3) of subdivision (a) of Section 12921.8.

(d)The conduct of employees of the travel retailer who have been designated to transact travel insurance on behalf of the licensed limited lines travel insurance agent shall be deemed the conduct of the licensed limited lines travel insurance agent for purposes of this article.

(e)A person licensed in a major line of authority as an insurance agent is authorized to sell, solicit, and negotiate and otherwise transact travel insurance. A property and casualty insurance agent is not required to become appointed by an insurer in order to sell, solicit, negotiate or otherwise transact travel insurance.

SEC. 6.SEC. 4.

 Section 1756.1 is added to the Insurance Code, to read:

1756.1.

 (a) A travel insurer shall pay premium tax, as provided in the Revenue and Taxation Code, on travel insurance premiums paid by any of the following:

(1) An individual primary policyholder who is a resident of this state.

(2) A primary certificate holder who is a resident of this state who elects coverage under a group travel insurance policy.

(3) A blanket travel insurance policyholder that is a resident in, or has its principal place of business or the principal place of business of an affiliate or subsidiary that has purchased blanket travel insurance in, this state for eligible blanket group members, subject to any apportionment rules that apply to the insurer across multiple taxing jurisdictions or that permit the insurer to allocate premiums on an apportioned basis in a reasonable and equitable manner in those jurisdictions.

(b) A travel insurer shall do both of the following:

(1) Document the state of residence or principal place of business of the policyholder or certificate holder.

(2) Report as premium only the amount allocable to travel insurance and not any amounts received for travel assistance services or cancellation fee waivers.

SEC. 7.SEC. 5.

 Section 1756.2 is added to the Insurance Code, to read:

1756.2.

 Travel protection plans may be offered for one price for the combined features offered by the travel protection plan if all of the following conditions are met:

(a) The travel protection plan does both of the following at or prior to the time of purchase:

(1) Clearly discloses to the consumer that it includes travel insurance, travel assistance services, and cancellation fee waivers, as applicable.

(2) Provides information and an opportunity for the consumer to obtain additional information regarding the features and pricing of travel insurance, travel assistance services, and cancellation fee waivers.

(b) The fulfillment materials do both of the following:

(1) Describe and delineate the travel insurance, travel assistance services, and cancellation fee waivers in the travel protection plan.

(2) Include the travel insurance disclosures and the contact information for persons providing travel assistance services, and cancellation fee waivers, as applicable.

SEC. 8.SEC. 6.

 Section 1756.3 is added to the Insurance Code, to read:

1756.3.

 (a) A person offering travel insurance to residents of this state is subject to Article 6.5 (commencing with Section 790) of Chapter 1, except as otherwise provided in this section. In the event of a conflict between this article and other provisions of this code regarding the sale and marketing of travel insurance and travel protection plans, the provisions of this article shall control.

(b) Offering or selling a travel insurance policy that could never result in payment of a claim for an insured under the policy is an unfair trade practice under Article 6.5 (commencing with Section 790) of Chapter 1.

(c) (1) Documents provided to consumers prior to the purchase of travel insurance, including, but not limited to, sales materials, advertising materials, and marketing materials, shall be consistent with the travel insurance policy itself, including, but not limited to, forms, endorsements, policies, rate filings, and certificates of insurance.

(2) For travel insurance policies or certificates that contain preexisting condition exclusions, information and an opportunity to learn more about the preexisting condition exclusions shall be provided any time prior to the time of purchase and in the coverage’s fulfillment materials.

(3) The fulfillment materials and the information described in subparagraphs (A) to (D), inclusive, of paragraph (1) of subdivision (a) of Section 1754 shall be provided to a policyholder or certificate holder as soon as practicable, following the purchase of a travel protection plan. Unless the insured has either started a covered trip or filed a claim under the travel insurance coverage, a policyholder or certificate holder may cancel a policy or certificate for a full refund of the travel protection plan price from the date of purchase of a travel protection plan until at least one of the following:

(A) Fifteen days following the date of delivery of the travel protection plan’s fulfillment materials by postal mail.

(B) Ten days following the date of delivery of the travel protection plan’s fulfillment materials by means other than postal mail.

(4) For the purposes of this section, delivery means either handing fulfillment materials to the policyholder or certificate holder or sending fulfillment materials by postal mail or electronic means to the policyholder or certificate holder.

(5) The company shall disclose in the policy documentation and fulfillment materials whether the travel insurance is primary or secondary to other applicable coverage.

(6) If travel insurance is marketed directly to a consumer through an insurer’s internet website or by others through an aggregator site, it shall not be an unfair trade practice or other violation of law when an accurate summary or short description of coverage is provided on the internet website, so long as the consumer has access to the full provisions of the policy through electronic means.

(d) A person offering, soliciting, negotiating, or otherwise transacting travel insurance or travel protection plans on an individual or group basis shall not use a negative option or opt out that would require a consumer to take an affirmative action to deselect coverage, such as unchecking a box on an electronic form when the consumer purchases a trip.

(e) It shall be an unfair trade practice to market blanket travel insurance coverage as free.

(f) When a consumer’s destination jurisdiction requires insurance coverage, it shall not be an unfair trade practice to require that a consumer choose between the following options as a condition of purchasing a trip or travel package:

(1) Purchasing the coverage required by the destination jurisdiction through the travel retailer or limited lines travel insurance agent supplying the trip or travel package.

(2) Agreeing to obtain and provide proof of coverage that meets the destination jurisdiction’s requirements prior to departure.

SEC. 9.SEC. 7.

 Section 1756.4 is added to the Insurance Code, to read:

1756.4.

 (a) Notwithstanding any other provisions of this code, a person shall not act or represent themselves as a travel administrator for travel insurance in this state unless that person is a licensed property and casualty insurance agent in this state for activities permitted under that agent license or holds one of the following:

(1) A valid managing general agent license in this state.

(2) A valid third-party administrator license in this state.

(b) A travel administrator and its employees are exempt from the licensing requirements of Chapter 1 (commencing with Section 14000) of Division 5 for travel insurance it administers.

(c) An insurer is responsible for the acts of a travel administrator administering travel insurance underwritten by the insurer, and is responsible for ensuring that the travel administrator maintains all books and records relevant to the insurer. The travel administrator shall make the books and records available to the commissioner upon request.

SEC. 10.Section 1756.5 is added to the Insurance Code, to read:

1756.5.

(a)Notwithstanding any other provisions of this code, for the purpose of rates and forms, travel insurance shall be classified and filed under an inland marine line of insurance. Travel insurance providing coverage for sickness, accident, disability, or death occurring during travel, either exclusively, or in conjunction with related coverages of emergency evacuation or repatriation of remains, or incidental limited property and casualty benefits, such as baggage or trip cancellation, may be filed under either an accident and health line of insurance or an inland marine line of insurance.

(b)Travel insurance may be in the form of an individual, group, or blanket policy.

(c)Eligibility and underwriting standards for travel insurance may be developed and provided based on travel protection plans designed for individual or identified marketing or distribution channels, provided those standards also meet the state’s underwriting standards for inland marine.