Purpose

• Establish a comprehensive framework for selling travel insurance in Minnesota. Create licensing and registration rules for limited lines travel insurance producers and travel retailers, regulate travel protection plans, require clear disclosures and training, and set rules for how travel insurance and related services are marketed and sold.

Main Provisions

• Licensing and registration of travel insurance entities

  • Defines limited lines travel insurance producer as a licensed managing general agent, third-party administrator, limited lines producer, or travel administrator.
  • Allows a travel retailer to offer travel insurance on behalf of a licensed limited lines travel insurance producer, under the producer’s direction.
  • Requires certain marketing identifications, disclosures, and a maintained register of travel retailers working with each licensed producer.
  • Requires compliance with relevant federal law (e.g., 18 U.S.C. 1033) and fingerprinting/training provisions for certain staff.
  • Places responsibility on the insurer (as the designee) to oversee the travel retailer’s compliance and to take reasonable steps to ensure adherence to Minnesota law.

• Travel protection plans and bundled offerings

  • Creates the concept of a travel protection plan, which may include travel insurance, travel assistance services, and cancellation fee waivers.
  • Allows these plans to be sold at one price if the plan clearly discloses what is included and provides access to additional information about features and pricing before purchase.
  • Requires fulfillment materials to delineate the coverage and services and to include contact information for providers.

• Definitions and scope (65C chapter)

  • Adds definitions for aggregator site, blanket travel insurance, cancellation fee waiver (not insurance), eligible group, fulfillment materials, primary certificate holder, primary policyholder, travel administrator, travel protection plan, and other related terms.
  • Clarifies how travel protection plans interact with travel insurance and travel assistance services.
  • Establishes who a travel retailer is and how it may operate with a limited lines producer.

• Premium tax and reporting

  • Travel insurers must pay premium tax on travel insurance premiums paid by Minnesota residents or qualifying group/blanket policy holders.
  • Requires documentation of the policyholder’s state of residence or principal place of business and requires reporting of the premium amounts allocable to travel insurance (excluding amounts for travel assistance services or cancellation fee waivers).

• Sales practices and consumer disclosures

  • Requires consistency between marketing materials and actual coverage terms.
  • Mandates disclosure of preexisting condition exclusions before purchase and inclusion of those details in policy documents and fulfillment materials.
  • Prohibits negative option/opt-out practices that require an affirmative action to deselect coverage.
  • Outlines rights to cancel and obtain a full refund within specific timeframes after purchase or fulfillment materials delivery.
  • If a destination jurisdiction requires insurance, allows consumers to choose between purchasing the required coverage or providing proof of equivalent coverage.
  • Prohibits marketing blanket travel insurance as free of cost.

• Travel administrators and oversight

  • Prohibits acting as a travel administrator unless the person is licensed as a property and casualty producer, holds an MGA license, or holds a TPA license in Minnesota.
  • Travel administrators and their staff are exempt from certain licensing under Chapter 72B, but insurers remain responsible for the acts of travel administrators and for keeping necessary records.

• Policy forms and filing

  • Travel insurance is classified and filed under inland marine lines for rates and forms, but it may be filed under accident and health or inland marine lines as appropriate.
  • Eligibility and underwriting standards for travel insurance may be developed consistent with inland marine underwriting standards.
  • Travel insurance may be offered as individual, group, or blanket policies.

Significant Changes from Existing Law (highlights)

• Establishes new licensing and registration requirements specifically for limited lines travel insurance producers and for travel retailers working with them.
• Creates a formal regulatory framework for travel protection plans that blend travel insurance, travel assistance services, and cancellation fee waivers.
• Introduces enhanced disclosure obligations, marketer accountability, and consumer protections (including preexisting condition disclosures and opt-out restrictions).
• Extends financial and compliance responsibilities to insurers for the actions of travel administrators and the entities they work with.
• Clarifies premium tax treatment for travel insurance within Minnesota and across jurisdictions, with apportionment rules.
• Expands definitions to cover aggregator sites, blanket travel insurance, and other components of modern travel insurance offerings.

Impact on Stakeholders

• Travel retailers and producers: new licensing, registration, reporting, training, and compliance requirements; must maintain records and provide clear disclosures.
• Insurers: responsible for the acts of travel retailers and administrators acting on their behalf; must ensure compliance and recordkeeping.
• Consumers: stronger disclosures, clearer opt-out rules, protections against illusory or misrepresented coverage, and defined cancellation/refund timelines.
• State regulators: expanded authority to license, monitor, and enforce travel insurance activities and related plans.

Relevant Terms

• limited lines travel insurance producer
• travel retailer
• designated responsible producer (DRP)
• travel protection plan
• travel administrator
• aggregator site
• blanket travel insurance
• cancellation fee waiver
• primary certificate holder
• primary policyholder
• travel insurance
• travel assistance services
• insurance producer license
• producer designee / insurer designee
• inland marine line of insurance
• accident and health line of insurance
• premium tax
• United States Code title 18 section 1033 (compliance)
• fulfillment materials
• marketing materials
• preexisting condition exclusions
• opt-out / negative option
• licensing and fingerprinting
• power to regulate and file rates/forms

Relevant Terms - limited lines travel insurance producer - travel retailer - DRP (designated responsible producer) - travel protection plan - travel administrator - aggregator site - blanket travel insurance - cancellation fee waiver - primary certificate holder - primary policyholder - travel insurance - travel assistance services - inland marine - accident and health - premium tax - 18 U.S.C. 1033 - fulfillment materials - marketing materials - preexisting condition exclusions - opt-out - licensing - insurer designee - marketing disclosures