§ 515K.5 — Sales and marketing practices

Iowa § 515K.5

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 515K: TRAVEL INSURANCE

Text

1. Allpersonsofferingtravelinsurancetoresidentsofthisstateshallbesubjecttosections
507B.3 and 507B.4, except as otherwise provided in this section. In the event of a conflict
between this chapter and another provision under Title XIII, subtitle 1, regarding the sale
and marketing of travel insurance and travel protection plans, this chapter shall control.
2. a. Any document provided to a prospective purchaser prior to the prospective
purchaser’s purchase of travel insurance, including but not limited to sales, advertising, and
marketing materials, shall be consistent with the travel insurance policy, including but not
limited to forms, endorsements, policies, rate filings, and certificates of insurance.
b. If a travel insurance policy or a travel insurance certificate contains any preexisting
condition exclusion, a prospective purchaser shall, any time prior to the time of purchase,
be provided an opportunity to learn more about the preexisting condition exclusion. Any
preexisting condition exclusion information shall also be included in the travel insurance
policy or travel insurance certificate fulfillment materials.
c. The fulfillment materials and the information described in section 515K.3, subsection
2, paragraph “a”, subparagraphs (1) through (4) shall be provided to a primary policyholder
§515K.5, TRAVEL INSURANCE 6
or to a primary certificate holder as soon as practicable following the policyholder’s or the
certificateholder’spurchaseofatravelprotectionplan. Unlessaninsuredhaseitherstarteda
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 a travel protection plan until at least fifteen days following the
date of delivery of the travel protection plan’s fulfillment materials by postal mail, or ten days
following the date of delivery of the travel protection plan’s fulfillment materials by means
other than postal mail. For purposes of this paragraph, “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.
d. Aninsurershalldiscloseinthepolicydocumentationandfulfillmentmaterialsprovided
to the purchaser of travel insurance whether the travel insurance is primary or secondary to
any other applicable insurance coverage.
e. If travel insurance is marketed directly to consumers through an insurer’s internet
site, or by another person via an aggregator site, it shall not be an unfair trade practice or
other violation of law for the insurer or the other person to provide an accurate summary
or short description of the available insurance coverage, if all provisions of each available
travel insurance policy are accessible to consumers via electronic means.
3. No person shall offer, solicit, or negotiate travel insurance or a travel protection plan
on an individual or group basis through use of a negative option or an opt out 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.
4. It shall be an unfair trade practice pursuant to section 507B.3 and section 507B.4 to do
any of the following:
a. Offer or sell a travel insurance policy that, due to an exclusion or other provisions in
the policy, cannot result in payment of any claim made by any insured under the policy.
b. Market blanket travel insurance coverage as no cost coverage.
5. If a consumer’s travel destination is located in a jurisdiction that mandates specific
insurance coverage, it shall not be an unfair trade practice to require that the consumer, as a
condition of purchasing a travel package, select one of the following options:
a. Purchase of the coverage required by the destination jurisdiction through either the
travel retailer or the limited lines travel insurance producer that provides the travel package.
b. Agree to obtain and provide proof of coverage that meets the destination jurisdiction’s
requirements prior to the consumer’s departure.