Purpose

This bill creates a comprehensive regulatory framework for selling travel insurance in Minnesota. It establishes licensing and registration requirements for limited lines travel insurance producers and travel retailers, defines key terms (like travel protection plans and travel assistance services), sets disclosure and training requirements, and outlines how travel insurance and related products should be marketed, sold, and taxed. It also clarifies responsibilities for insurers, travel administrators, and the use of certain distribution channels.

Key terms and definitions

• Limited lines travel insurance producer: a licensed managing general agent or third-party administrator or other limited-lines producer authorized to sell travel insurance.
• Travel retailer: a business that offers, disseminates, or arranges travel and may offer travel insurance on behalf of a licensed producer.
• Travel protection plan: a bundle that may include travel insurance, travel assistance services, and cancellation fee waivers.
• Travel insurance: coverage for risks associated with travel, as defined in the bill.
• Travel assistance services: noninsurance services provided in connection with travel (not insurance).
• Travel administrator: a person who underwrites, collects charges, or handles claims in travel insurance, subject to specific licensing rules.
• Aggregator site: a website that compares information from multiple insurers.
• Primary certificate holder / Primary policyholder: individuals who elect and purchase group or individual travel insurance.
• DRP (designated responsible producer): a licensed producer responsible for a travel retailer’s compliance.
• Blanket travel insurance: group coverage for defined classes without a separate charge to individuals.
• Cancellation fee waiver: an agreement to waive nonrefundable cancellation fees; not insurance.

Regulatory framework and licensing

• Establishes a Minnesota Chapter 65C framework for travel insurance, including definitions and applicability.
• Requires:
  • Limited lines travel insurance producers to be licensed to sell travel insurance through a licensed insurer.
  • Travel retailers to be licensed/registered and to keep a register of their relationships with producers, including the retailer’s information and the producer’s contact details.
  • A designated responsible producer (DRP) to oversee certain compliance duties for the business entity.
  • Fingerprinting, training for employees/authorized representatives, and payment of applicable licensing fees.
  • The insurer to serve as the designee and to ensure travel retailers’ compliance with the chapter and existing Minnesota insurance laws.
• Prohibits acting as a limited lines travel insurance producer or travel retailer without the proper license/registration.

Registration and records for travel retailers

• Travel retailers must register under the limited lines travel insurance producer license.
• The registered entity must be clearly identified on marketing materials as the licensed producer responsible for the travel insurance.
• A register must be kept and maintained with details about the travel retailer and the entity’s control structure, including the retailer’s Employer Identification Number.
• Registrants must certify compliance with federal requirements (18 U.S.C. § 1033) and provide records upon request.

Marketing, disclosures, and consumer protections

• All pre-purchase materials must clearly identify the insurer and producer and describe material terms, claim filing process, and policy review/cancellation processes.
• The bill requires clear disclosures about:
  • The relationship between the travel retailer and the producer.
  • That purchasing travel insurance is not required to purchase other products/services.
  • When a travel retailer is unlicensed, they can provide only general information, not technical guidance.
• Prohibits nonlicensed employees from interpreting policy terms, giving advice about existing coverage, or misrepresenting licensing status.
• Prohibits negative option marketing (auto-deselection/opt-out without affirmative action).
• Prohibits marketing blanket travel insurance as “free of cost.”
• Requires disclosures about preexisting condition exclusions before purchasing policies.
• Requires fulfillment materials to provide full policy details and contact information as soon as practicable after purchase.
• Allows consumers to cancel a travel protection plan within a specified window for a full refund, unless travel has begun or a claim has been filed.
• Allows direct-to-consumer travel insurance marketed on insurer sites or aggregator sites to be compliant if a fair summary of coverage is provided and full policy details are accessible electronically.

Travel protection plans and travel assistance services

• Travel protection plans may be offered at one price for the combined features (travel insurance, travel assistance services, and cancellation fee waivers) if:
  • The consumer is clearly informed that the plan includes all three components at purchase, with opportunities to obtain more information about each feature.
  • Fulfillment materials describe each component and provide contact information for the providers offering travel protection services and waivers.
• Travel assistance services are noninsurance services (not subject to insurance regulation) but related to the travel protection plan.

Premium tax and reporting

• Travel insurance premiums are subject to Minnesota’s premium tax, with reporting requirements to document the policyholder’s state of residence or principal place of business.
• The tax base for multi-jurisdictional policies must be allocated or apportioned appropriately to Minnesota and other jurisdictions.

Policy forms, rates, and classification

• Travel insurance is classified and filed for rates/forms under inland marine lines, but travel insurance that covers illness or accident during travel may also be filed under accident and health lines.
• Travel protection plans may be issued as individual, group, or blanket policies.
• Eligibility and underwriting standards for travel insurance can be developed for the plan type and distribution channels, provided they meet inland marine underwriting standards.

Travel administrators and insurer responsibilities

• Travel administrators must be licensed (property/casualty producer, managing general agent, or third-party administrator) to operate in Minnesota.
• An insurer is responsible for the acts of a travel administrator acting on behalf of the insurer and for ensuring the administrator keeps required records and makes them available to the commissioner on request.

Implementation and related provisions

• The bill emphasizes alignment with existing Minnesota insurance laws unless specifically stated otherwise, and it provides transitional or overlapping guidance to ensure consistent enforcement.
• It clarifies the relationship between major lines producers (existing authority) and travel insurance activities, noting that a property and casualty producer is not required to be appointed to sell travel insurance.

Significant changes from current law

• Creates a dedicated regulatory framework for travel insurance (Minnesota Statutes Chapter 65C) with new definitions and licensing for limited lines travel insurance producers and travel retailers.
• Introduces mandatory registration of travel retailers, DRP designations, fingerprinting, training, and ongoing compliance obligations.
• Expands disclosure and marketing requirements, including specific consumer protections, opt-out prohibitions, and preexisting condition disclosures.
• Establishes a bundled travel protection plan concept with explicit rules for combining travel insurance, travel assistance services, and cancellation fee waivers, including disclosure and fulfillment material requirements.
• Establishes a premium tax framework specific to travel insurance with reporting requirements tied to residents and jurisdictional apportionment.
• Clarifies insurer responsibility for travel administrators and categorizes travel insurance within inland marine or accident/health classifications for rate/form filing.

Relevant Terms - limited lines travel insurance producer - travel retailer - DRP (designated responsible producer) - travel protection plan - travel insurance - travel assistance services - cancellation fee waiver - aggregator site - blanket travel insurance - eligible group - travel administrator - primary certificate holder - primary policyholder - inland marine - premium tax - marketing disclosures - preexisting condition exclusions - negative option marketing - fulfillment materials - insurer designee - license and registration requirements