§ 20-3556 — Sales practices; definition

A. All persons offering travel insurance to residents of this state are subject to chapter 2, article 6 of this title relating to unfair trade practices and frauds, except as otherwise provided in this section. If a conflict exists between this chapter and another provision of this title regarding the sale and marketing of travel insurance and travel protection plans, this chapter controls.

B. Offering or selling a travel insurance policy that could never result in payment of any claims for any insured under the policy is an unfair trade practice under chapter 2, article 6 of this title.

C. All documents provided to consumers before the purchase of travel insurance, including sales materials, advertising materials and marketing materials, shall be consistent with the travel insurance policy itself, including forms, endorsements, policies, rate filings and certificates of insurance.

D. For travel insurance policies or certificates that contain preexisting condition exclusions, information and an opportunity to learn more about the preexisting condition exclusions shall be provided any time before the time of purchase and in the coverage's fulfillment materials.

E. The fulfillment materials and the information described in section 20-3553, subsection A, paragraph 1 shall be provided to a policyholder or certificate holder as soon as practicable following the purchase of a travel protection plan. Unless the insured has either started a covered trip or filed a claim under the travel insurance coverage, a policyholder or certificate holder may cancel a policy or certificate for a full refund of the travel protection plan price from the date of purchase of the travel protection plan until at least either:

1. Fifteen days after the date of delivery of the travel protection plan's fulfillment materials by postal mail.

2. Ten days after the date of delivery of the travel protection plan's fulfillment materials by means other than postal mail.

F. The policy documentation and fulfillment materials shall disclose whether the travel insurance is primary or secondary to other applicable coverage.

G. If travel insurance is marketed directly to a consumer through an insurer's website or by others through an aggregator site, it is not an unfair trade practice or other violation of law if an accurate summary or short description of the coverage is provided on the website and the consumer has access to the full provisions of the policy through electronic means.

H. A person may not offer, solicit or negotiate travel insurance or travel protection plans on an individual or group basis by using a negative or opt out option that requires a consumer to take an affirmative action to deselect coverage, such as unchecking a box on an electronic form, when the consumer purchases a trip.

I. It is an unfair trade practice to market blanket travel insurance coverage as free.

J. If a consumer's destination jurisdiction requires insurance coverage, it is not an unfair trade practice to require that a consumer choose between the following options as a condition of purchasing a trip or travel package:

1. Purchasing the coverage required by the destination jurisdiction through the travel retailer or limited lines travel insurance producer supplying the trip or travel package.

2. Agreeing to obtain and provide proof of coverage that meets the destination jurisdiction's requirements before departure.

K. For the purposes of this section, "delivery" means handing fulfillment materials to the policyholder or certificate holder or sending fulfillment materials by postal mail or electronic means to the policyholder or certificate holder.