§ 27-79.1-4. Licensing and registration requirements.
(a) The commissioner may issue 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 the commissioner, a limited lines travel insurance
producer license that authorizes the limited lines travel insurance producer to sell,
solicit, or negotiate travel insurance through a licensed insurer. No person may act
as a limited lines travel insurance producer or travel insurance retailer unless properly
licensed or registered.
(b) 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 travel retailer provides to purchasers
of travel insurance:
(i) A description of the material terms or the actual material terms of the insurance
coverage;
(ii) A description of the process for filing a claim;
(iii) A description of the review or cancellation process for the travel insurance policy;
and
(iv) 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 shall establish
and maintain a register, on a form prescribed 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 by the limited lines travel insurance
producer, and shall include the name, address, and contact information of the travel
retailer, and an officer or person who directs or controls the travel retailer's operations,
and the travel retailer's federal tax identification number. 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 the travel retailer
registered complies with 18 U.S.C. § 1033. The grounds for the suspension, revocation, and the penalties applicable to resident
insurance producers shall be applicable to the limited lines travel insurance producers
and travel retailers;
(3) The limited lines travel insurance producer has designated one of its employees who
is a licensed individual producer as the person (a "designated responsible producer�
or "DRP�) responsible for the compliance with the travel insurance laws and regulations
applicable to the limited lines travel insurance producer and its registrants;
(4) The DRP, president, secretary, treasurer, and any other officer or person 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 licensing fees
as set forth in applicable state law;
(6) The limited lines travel insurance producer must require 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
shall, at a minimum, contain adequate instructions on the types of insurance offered,
ethical sales practices, and required disclosures to prospective customers.
(c) Any travel retailer offering or disseminating travel insurance shall make available
to prospective purchasers brochures or other written materials that have been approved
by the travel insurer. Such materials shall include information which, at a minimum:
(1) Provides the identity and contact information of the insurer and the limited lines
travel insurance producer;
(2) Explains that the purchase of travel insurance is not required in order to purchase
any other product or service from the travel retailer; and
(3) Explains that an unlicensed travel retailer is permitted to provide only 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.
(d) A travel retailer employee or authorized representative, who is not licensed as an
insurance producer, may not:
(1) Evaluate or interpret the technical terms, benefits, and conditions of the offered
travel insurance coverage;
(2) Evaluate or provide advice concerning a prospective purchaser's existing insurance
coverage; or
(3) Hold themselves out as a licensed insurer, licensed producer, or insurance expert.
(e) Any person licensed in a major line of authority as an insurance producer is authorized
to sell, solicit, and 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.