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Senate Bill 1672 |
Senate Author: Taylor |
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Effective: 9-1-13 |
House Sponsor: Eiland |
Previous law authorized the commissioner of insurance to issue a limited-purpose specialty license to a travel agency, the franchise of a travel agency, or a public carrier. Senate Bill 1672 amends the Insurance Code to instead authorize the commissioner to issue a specialty license to an applicant authorizing the license holder to sell, solicit, or negotiate travel insurance through a licensed insurer. The bill authorizes an insurer authorized to engage in the business of travel insurance in Texas to designate a travel insurance supervising entity and establishes that a travel retailer that operates on behalf of and under the license and direction of a supervising entity does not require a travel insurance license. The bill includes provisions specifying a travel retailer's authority to offer and disseminate travel insurance as a service to the retailer's customers on behalf of and under the license and direction of a supervising entity. The bill establishes that travel insurance does not include major medical expense coverage for a traveler on a planned trip for six months or more.
Senate Bill 1672 requires a travel retailer, or the supervising entity, to provide to a traveler seeking to purchase travel insurance certain information concerning the policy and the name and contact information for the insurer and the supervising entity. The bill authorizes travel insurance coverage to be provided under an individual policy or a group or master policy.
Senate Bill 1672 requires an insurer that provides travel insurance to notify the Texas Department of Insurance in the manner prescribed by commissioner rule of the designation of a supervising entity. The bill authorizes a designated supervising entity to authorize a travel retailer to offer and disseminate a travel insurance policy on behalf of the supervising entity by establishing a retailer registry and sets out provisions relating to such a registry.
Senate Bill 1672 requires the supervising entity to certify in a form prescribed by commissioner rule that each registered travel retailer is in compliance with federal law regarding crimes by or affecting persons engaged in the business of insurance whose activities affect interstate commerce. The bill requires the supervising entity to designate a compliance officer and requires the compliance officer and certain officers of the supervising entity to submit fingerprints as required by commissioner rule. The bill requires the supervising entity to provide travel insurance instruction and training to certain employees of a registered travel retailer. A supervising entity is responsible for the acts of a travel retailer, and the bill requires the supervising entity to use reasonable means to ensure each registered retailer's compliance with provisions governing travel insurance.
Senate Bill 1672 requires a travel retailer offering and disseminating travel insurance to register with an insurer in a retailer registry. The bill requires the travel retailer to make available to travelers brochures or written materials that provide specified contact information for the authorized insurer and the supervising entity; that explain that the purchase of travel insurance is not required for the purchase from the travel retailer of any other product or service; and that disclose certain information concerning the retailer's limited qualifications and authority. The bill prohibits a travel retailer from engaging in certain activities and sets out provisions relating to the authorized compensation of a travel retailer. The bill subjects a supervising entity and a travel retailer registered with the supervising entity to statutory provisions governing sanctions, emergency cease and desist orders, and deceptive, unfair, and prohibited practices in the business of insurance.