Section 1 Authority
This regulation is promulgated under the authority granted to
the Commissioner by
8 V.S.A.
§§
15,
4813a(6)
and
4813f(b).
Section 2 Definitions
(A) "Limited lines producer for travel
insurance" means a:
Licensed insurance producer, including a limited lines
producer, designated by an insurer as the travel insurance supervising entity
as set forth in section
6
below.
(B) "Offer and
disseminate" means providing general information, including a description of
the coverage and price, as well as processing the application, collecting
premiums, and performing other non-licensable activities permitted by the
Department of Financial Regulation.
(C) "Travel insurance" means insurance
coverage for personal risks incident to planned travel, including but not
limited to:
(1) interruption or cancellation
of trip or event;
(2) loss of
baggage or personal effects;
(3)
damages to accommodations or rental vehicles; or
(4) sickness, accident, disability or death
occurring during travel.
Travel insurance does not include major medical plans, which
provide comprehensive medical protection for travelers with trips lasting six
(6) months or longer, including for example, those working overseas as an
ex-patriot or military personnel being deployed.
(D) "Travel retailer" means a business entity
that makes, arranges or offers travel services and may offer and disseminate
travel insurance as a service to its customers on behalf of and under the
direction of a limited lines producer for travel insurance.
Section 3 Authority
(A) The Commissioner may issue to an
individual or to a business entity that has complied with the requirements of
this regulation and filed an application for such limited lines license in a
form and manner prescribed by the Commissioner, a business entity limited lines
producer for travel insurance license, which authorizes the limited lines
producer for travel insurance to sell, solicit or negotiate travel insurance
through a licensed insurer.
(B) A
travel retailer may offer and disseminate travel insurance under a business
entity limited lines producer for travel insurance license ("licensed business
entity") only if the following conditions are met:
(1) The limited lines producer for travel
insurance or travel retailer provides to purchasers of travel insurance:
a. A description of the material terms or the
actual material terms of the insurance coverage;
d. A description of the process for filing a
claim;
c. A description of the
review or cancellation process for the travel insurance policy; and
d. The identity and contact information of
the insurer and limited lines producer.
(2) At the time of licensure, the limited
lines producer for travel insurance shall establish and maintain a register on
a form prescribed by the Commissioner of each travel retailer that offers
travel insurance on the limited lines producer for travel insurance's behalf.
The register shall be maintained and updated annually by the limited lines
producer for travel insurance and shall include the name, address, 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
Tax Identification Number. The limited lines producer for travel insurance
shall submit such register within 30 days upon request by the Department of
Financial Regulation. The limited lines producer shall also certify that the
travel retailer registered complies with
18 USC I 033.
(3) The limited lines producer for travel
insurance has designated one of its employees who is a licensed individual
producer as the person (a "Designated Responsible Licensed Producer" or "DRLP")
responsible for the limited lines producer for travel insurance's compliance
with the travel insurance laws, rules and regulations of the state and who is
appointed as an agent of the limited lines producer for travel insurance
consistent with
8 V.S.A. §
4813.
(4) The DRLP, president, secretary,
treasurer, and any other officer or person who directs or controls the limited
lines producer for travel insurance's insurance operations has complied with
the fingerprinting requirements applicable to insurance producers in the
resident state of the limited lines producer for travel insurance.
(5) The limited lines producer for travel
insurance has paid all applicable insurance producer licensing fees as set
forth in applicable state law.
(6)
The limited lines producer for travel insurance requires each employee and
authorized representative of the travel retailer whose duties include offering
and disseminating travel insurance to receive a program of instruction or
training, which may be subject to review by the Commissioner. The training
material shall, at a minimum, contain instructions on the types of insurance
offered, ethical sales practices, and required disclosures to prospective
customers.
(7) Limited lines
producers for travel insurance, and those registered under its license, are
exempt from examination requirements pursuant to section 8 V.S.A. § 4813
i(c) and continuing education requirements under
8 V.S.A. §
4800a.
(C) Any travel retailer offering or
disseminating travel insurance shall make available to prospective purchasers,
brochures or other written materials that:
(1) Provide the identity and contact
information of the insurer and the limited lines producer for travel
insurance;
(2) Explain that the
purchase of travel insurance is not required in order to purchase any other
product or service from the travel retailer; and
(3) Explain that an unlicensed 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.
(D) A travel retailer's employee
or authorized representative who is not licensed as an insurance producer may
not:
(1) Evaluate or interpret the technical
terms, benefits, and conditions of the offered travel insurance
coverage;
(2) Evaluate or provide
advice concerning a prospective purchaser's existing insurance coverage;
or
(3) Hold himself or itself out
as a licensed insurer, licensed producer, or insurance expert.
Section 4 Registration
Notwithstanding any other provision of law, 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 limited lines producer for travel
insurance meeting the conditions stated in this section, is authorized to do so
and receive related compensation for such services, upon registration by the
limited lines producer for travel insurance as described in section
3(B)(2)
of this rule.
Section 5
Policy
Travel insurance may be provided under an individual policy
or under a group or master policy.
Section 6 Responsibility
The limited lines producer for travel insurance, its
designated responsible licensed producer, and the appointing insurer are
responsible for the acts of the travel retailer related to the offer and
dissemination of travel insurance and shall use reasonable means to ensure the
travel retailer's compliance with this rule.
Section 7 Enforcement
The limited lines producer for travel insurance and any
travel retailer offering and disseminating travel insurance under the business
entity limited lines producer license for travel insurance shall be subject to
the provisions of
8 V.S.A. §
13, 8 V.S.A. Chapter 129, and
8 V.S.A. §
4804.
Section 8 Effectiveness
This regulation shall become effective May 15,
2017.
