§ 27-64-4 — Limited Lines Travel Insurance Producer License - Requirements; Brochures and Written Materials; Prohibited Activities

Alabama § 27-64-4

• Jurisdiction: Alabama
• Title 27: Insurance
• Ch. 64: Travel Insurance Act

Text

(a) The commissioner may issue a limited lines travel insurance producer license to an individual or business entity that has filed with the commissioner an application for a limited lines travel insurance producer license in a form and manner prescribed by rule by the commissioner. A limited lines travel insurance producer shall be licensed to sell, solicit, or negotiate travel insurance through a licensed insurer.
(b) No person may act as a limited lines travel insurance producer or travel insurance retailer unless properly licensed or registered, respectively.
(c) The criteria for suspension, revocation, and the penalties applicable to resident insurance producers under Section 27-7-19 shall be applicable to limited lines travel insurance producers and travel retailers.
(d) A travel retailer may offer and disseminate travel insurance under a limited lines travel insurance producer business entity license only if the following conditions are met:
(1) The limited lines travel insurance producer or the travel retailer provides to customers of travel insurance all of the following:
a. A description of the material terms or the actual material terms of the insurance coverage.
b. A description of the process for filing a claim.
c. A description of the review or cancellation process for the travel insurance policy.
d. The identity and contact information of the insurer and limited lines travel insurance producer.
(2) At the time of licensure, the limited lines travel insurance producer establishes and thereafter maintains a register, in a form prescribed by rule by the commissioner, of each travel retailer that offers travel insurance on the limited lines travel insurance producer’s behalf. The register shall be maintained and updated annually by the limited lines travel insurance producer and shall include the name, address, contact information, and federal tax identification number of the travel retailer, and the name of an officer or individual who directs or controls the travel retailer’s operations. The limited lines travel insurance producer shall submit the register to the commissioner upon reasonable request. The limited lines travel insurance producer shall also certify that a registered travel retailer complies with 18 U.S.C. § 1033.
(3) The limited lines travel insurance producer shall designate one of its employees who is a licensed individual producer as the designated responsible producer, responsible for the business entity’s compliance with the travel insurance laws and rules of the state applicable to the limited lines travel insurance producer and its registrants.
(4) The designated responsible producer, president, secretary, treasurer, and any other officer or individual who directs or controls the limited lines travel insurance producer’s insurance operations shall comply with the fingerprinting requirements applicable to insurance producers in the resident state of the limited lines travel insurance producer.
(5) The limited lines travel insurance producer has paid all applicable insurance producer licensing fees as set forth in applicable state law.
(6) The limited lines travel insurance producer 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 is subject, at the discretion of the commissioner, to review and approval. The training material, at a minimum, shall contain adequate instructions on the types of insurance offered, ethical sales practices, and required disclosures to prospective purchasers.
(e) Any travel retailer offering or disseminating travel insurance shall make brochures or other written materials available to prospective purchasers that have been approved by the travel insurer. The materials shall include information which at a minimum do all of the following:
(1) Provide the identity and contact information of the insurer and the travel insurance producer.
(2) Explain that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer.
(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.
(f) A travel retailer employee or authorized representative who is not licensed as an insurance producer may not do any of the following:
(1) Evaluate or interpret the technical terms, benefits, and conditions of the offered travel insurance coverage.
(2) Evaluate or provide advice concerning the existing insurance coverage of a prospective purchaser.
(3) Hold himself or herself out as a licensed insurer, licensed producer, or insurance expert.
(g) Notwithstanding any other state law, a travel retailer, whose insurance-related activities and those of its employees and authorized representatives is limited to offering and disseminating travel insurance on behalf of and under the direction of a limited lines travel insurance producer meeting the conditions stated in this section, may offer and disseminate travel insurance, and may receive related compensation, upon registration by the travel insurance producer as described in this section.
(h) As the insurer designee, the limited lines travel insurance producer is responsible for the acts of the travel retailer and shall use reasonable means to ensure compliance by the travel retailer with this section.
(i) Any person licensed in a major line of authority as an insurance producer may sell, solicit, or negotiate travel insurance. A property and casualty insurance producer is not required to become appointed by an insurer in order to sell, solicit, or negotiate travel insurance.

Legislative History

(Act 2022-152, §1.)