In 2015, the US Travel Insurance Association, Tourism and Travel Industry Consumer Coalition and other Industry representatives expressed that a need to develop a model law based on travel insurance products not fitting into standard interpretations of current insurance laws and rules indicated that the development of a model law should proceed to gain more regulatory clarity in the travel insurance space. Other issues identified by the industry included: 1) the enhancement of provisions that govern the sale and marketing of travel insurance including such things as restrictions on opt-out sales, enhanced disclosures for pre-existing condition exclusions, minimum “free look” provisions, and policy disclosures; 2) cancellation fee waiver or refund programs being provided together; 3) rate and form review provisions; 4) clear definitions including proper documentation and payment of premium taxes; 5) travel administrator licensing and audit requirements; and 6) clear and targeted enforcement and penalty provisions.
The Travel Insurance Model Act (the Model) provides a number of benefits by creating uniform definitions; expanding and codifying the ability to write travel insurance as a blanket or group product; and making it easier to file products in states where The Model has been enacted; clarifying the payment of premium taxes; setting out permitted and prohibited sales practices; and generally reducing regulatory confusion.
This map represents the states around the country that have adopted the Model.
NCOIL Travel Insurance Model Act
The National Conference of Insurance Legislators (NCOIL) writes Model Laws in insurance, works to both preserve the state jurisdiction over insurance and to serve as an educational forum for public policymakers and interested parties.
The Travel Insurance Model Act was originally adopted in November 2012 with adopted updates in March 2017.
NAIC Travel Insurance Model
The National Association of Insurance Commissioners (NAIC) is governed by the chief insurance regulators from the 50 states, the District of Columbia, and five U.S. territories to coordinate regulation of multistate insurers.
NAIC provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers.
