§ 27-79.1-8. Sales practices.
(a) All persons offering travel insurance to residents of this state are subject to the
unfair trade practices provided in chapter 29 of this title, except as otherwise provided
in this section. In the event of a conflict between this chapter, and other provisions
of this title regarding the sale and marketing of travel insurance and travel protection
plans, the provisions of this chapter shall control.
(b) Offering or selling a travel insurance policy that could never result in the payment
of any claims for any insured under the policy is an unfair trade practice under chapter
29 of this title.
(c)(1) All documents provided to consumers prior to the purchase of travel insurance, including,
but not limited to, sales materials, advertising materials, and marketing materials,
shall be consistent with the travel insurance policy itself, including, but not limited
to, forms, endorsements, policies, rate filings, and certificates of insurance.
(2) 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 prior to the time of purchase, and in the coverage's fulfillment
materials.
(3) The fulfillment materials and the information described in § 27-79.1-4(b)(1)(i)-(iv) 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 a travel protection plan
until at least:
(i) Fifteen (15) days following the date of delivery of the travel protection plan's fulfillment
materials by postal mail; or
(ii) Ten (10) days following the date of delivery of the travel protection plan's fulfillment
materials by means other than postal mail. For the purposes of this section, "delivery�
means handing fulfillment materials to the policyholder or certificate holder, or
sending fulfillment materials by postal or electronic means to the policyholder or
certificate holder.
(4) The company shall disclose in the policy documentation and fulfillment materials whether
the travel insurance is primary or secondary to other applicable coverage.
(5) When travel insurance is marketed directly to a consumer through an insurer's website
or by others through an aggregator site, it shall not be an unfair trade practice
or other violation of law where an accurate summary or short description of coverage
is provided on the website, so long as the consumer has access to the full provisions
of the policy through electronic means.
(d) No person offering, soliciting, or negotiating travel insurance or travel protection
plans on an individual or group basis may do so by using a negative option or opt
out, which would require a consumer to take an affirmative action to deselect coverage
such as unchecking a box on an electronic form when they purchase a trip.
(e) It shall be an unfair trade practice to market blanket travel insurance coverage as
free.
(f) When a consumer's destination jurisdiction requires insurance coverage, it shall not
be 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;
or
(2) Agreeing to obtain and provide proof of coverage that meets the destination jurisdiction's
requirements prior to departure.