Connecticut General Statutes 38a-398 – Travel Insurance
(a) As used in this section:
Terms Used In Connecticut General Statutes 38a-398
- Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
- Commissioner: means the Insurance Commissioner. See Connecticut General Statutes 38a-1
- Insurance: means any agreement to pay a sum of money, provide services or any other thing of value on the happening of a particular event or contingency or to provide indemnity for loss in respect to a specified subject by specified perils in return for a consideration. See Connecticut General Statutes 38a-1
- insurance company: includes any person or combination of persons doing any kind or form of insurance business other than a fraternal benefit society, and shall include a receiver of any insurer when the context reasonably permits. See Connecticut General Statutes 38a-1
- Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy. See Connecticut General Statutes 38a-1
- Policy: means any document, including attached endorsements and riders, purporting to be an enforceable contract, which memorializes in writing some or all of the terms of an insurance contract. See Connecticut General Statutes 38a-1
- State: means any state, district, or territory of the United States. See Connecticut General Statutes 38a-1
(1) “Travel insurance” means insurance, provided under an individual or a group or master insurance policy, for the following personal risks incident to planned travel: (A) Interruption or cancellation of a trip or an event; (B) loss of baggage or personal effects; (C) damage to accommodations or rental vehicles; or (D) sickness, accident, disability or death occurring during travel;
(2) “Limited lines travel insurance producer” means an individual who or business entity that is authorized under subsection (b) of this section to sell, solicit or negotiate travel insurance;
(3) “Offer and disseminate,” with respect to travel insurance, means the provision of general information about or general services for travel insurance, including: (A) A description of the coverage and price of a travel insurance policy; (B) the processing of an application for a travel insurance policy; (C) the collection of a premium for a travel insurance policy; or (D) the performance of other activities not requiring a license and permitted in this state concerning a travel insurance policy;
(4) “Travel retailer” means a business entity that makes, arranges or offers travel services; and
(5) “Designated travel retailer” means a travel retailer designated by a limited lines travel insurance producer to offer and disseminate travel insurance to residents of this state on such producer’s behalf.
(b) (1) (A) Any individual or business entity that wishes to act as a limited lines travel insurance producer in this state may apply to the Insurance Commissioner for authorization to act as a limited lines travel insurance producer and to sell, solicit or negotiate travel insurance through an insurance company licensed or authorized to do business in this state. Such application shall be submitted on such form and in such manner as prescribed by the commissioner and shall be accompanied by the fee required under section 38a-11. The commissioner shall not approve such application unless (i) the applicant has paid all applicable filing and licensing fees required under this title, and (ii) for an applicant that is a business entity, the employee designated pursuant to subparagraph (A) of subdivision (3) of this subsection and the president, secretary, treasurer and any other officer or individual who directs or controls the insurance operations of the applicant has complied with any fingerprinting requirements applicable to insurance producers in the resident state of the applicant.
(B) The commissioner may approve or deny such application. Any such authorization shall be in force until the commissioner suspends or revokes such authorization or the commissioner suspends, revokes or refuses to renew the individual’s or insurance company’s license or authorization to do business in this state.
(2) Each limited lines travel insurance producer that is a business entity shall, at the time such application is approved by the commissioner, establish and maintain a registry, on a form prescribed by the commissioner, of its designated travel retailers. Such producer shall update the registry annually and shall include: (A) The name, address and contact information of each designated travel retailer; (B) the name, address and contact information of an officer or individual who directs or controls each designated travel retailer’s operations; (C) the federal tax identification number of each designated travel retailer; and (D) a certification by such producer that the designated travel retailer has not engaged in conduct prohibited under 18 USC 1033, as amended from time to time. Upon request by the commissioner, a limited lines travel insurance producer shall make such registry available to the commissioner or the commissioner’s designee for inspection and examination during the regular business hours of such limited lines travel insurance producer.
(3) (A) Each limited lines travel insurance producer that is a business entity shall designate an employee, who is an insurance producer licensed in this state, as the individual responsible for the limited lines travel insurance producer’s compliance with this section, including supervision of its designated travel retailers.
(B) Each limited lines travel insurance producer that is a business entity shall be responsible for the acts of its designated travel retailers and shall use reasonable means to ensure each designated travel retailer’s compliance with this section.
(4) Each limited lines travel insurance producer that is a business entity shall require each employee and authorized representative of its designated travel retailers to receive instruction or training on the offer and dissemination of travel insurance. Such instruction or training may be subject to review by the commissioner and shall include, at a minimum, information about (A) the types of travel insurance offered through the travel retailer, (B) ethical sales practices, and (C) required disclosures to prospective insureds.
(5) Each limited lines travel insurance producer that is a business entity or designated travel retailer shall provide to purchasers of a travel insurance policy: (A) A description or a copy of the material terms of such policy; (B) a description of the process for filing a claim under such policy; (C) a description of the process for the review or cancellation of such policy; and (D) the identity of and contact information for the insurance company issuing such policy and the limited lines travel insurance producer.
(c) (1) A travel retailer that does not employ a licensed insurance producer or is not licensed or authorized to transact the business of insurance in this state may offer and disseminate travel insurance to residents of this state, if (A) it is a designated travel retailer, and (B) its travel insurance-related activities are limited to those authorized under this section.
(2) A travel retailer shall make available to prospective insureds brochures or other written materials that: (A) Provide the identity of and contact information for the insurance company issuing the travel insurance policy and the limited lines travel insurance producer; (B) explain that the purchase of travel insurance is not required to purchase any other product or service from the travel retailer; and (C) explain that such travel retailer is permitted to provide general information about the travel insurance offered through the travel retailer, including a description of the coverage and price, but is not qualified or authorized to answer questions about the terms and conditions of such travel insurance or evaluate the adequacy of the prospective insured‘s existing insurance coverage.
(3) A designated travel retailer may receive compensation from a limited lines travel insurance producer or the insurance company issuing a travel insurance policy for services related to the offer and dissemination of travel insurance as agreed to by such designated travel retailer and such limited lines travel insurance producer or insurance company.
(4) An employee or authorized representative of a travel retailer shall not be required to be licensed as an insurance producer unless such employee or authorized representative: (A) Evaluates or interprets the terms, benefits or conditions of travel insurance offered by the travel retailer; (B) evaluates or provides advice regarding a prospective insured’s existing insurance coverage; or (C) holds himself or herself out as a licensed insurance producer or an insurance expert.
(d) (1) A violation of this section by a limited lines travel insurance producer shall be deemed an unfair or deceptive insurance practice under section 38a-816.
(2) A violation of this section by a travel retailer shall be deemed an unfair or deceptive trade practice under subsection (a) of section 42-110b.