§ 31A-23a-909 — Sales practices.

(1) As used in this section, "deliver" or "delivery" means:

(1)(a) handing fulfillment material to a policyholder or certificate holder; or
(1)(b) sending fulfillment material by mail or electronic means to a policyholder or certificate holder.
(2) A person who offers or sells a travel insurance policy to a resident of this state shall:

(2)(a) ensure that each document the person provides to the consumer before the consumer purchases the travel insurance, including sales material, advertising material, and marketing material, is consistent with the purchased travel insurance policy, including each form and rate filing;
(2)(b) provide the consumer information and an opportunity to learn more about each pre-existing condition exclusion the policy includes:
(2)(b)(i) before the consumer purchases the policy; and
(2)(b)(ii) in the travel protection plan's fulfillment materials; and
(2)(c) after a consumer purchases a travel protection plan, provide each policyholder or certificate holder as soon as practicable:
(2)(c)(i) the fulfillment materials; and
(2)(c)(ii) the information described in Subsection 31A-23a-904(1).
(3) (3)(a) Except as provided in Subsection (3)(b), a policyholder or certificate holder may cancel a policy or certificate for a full refund of the travel protection plan price during the period that:
(3)(a)(i) begins the day on which the consumer purchases the policy or certificate; and
(3)(a)(ii) ends no earlier than:

(3)(a)(ii)(A) if the travel protection plan's fulfillment materials are delivered to the policyholder or certificate holder by mail, 15 days after the day on which the mail is postmarked; or
(3)(a)(ii)(B) if the travel protection plan's fulfillment materials are delivered by means other than mail, 10 days after the day on which the delivery occurs.
(3)(b) A policyholder or certificate holder may not cancel a policy or certificate as described in Subsection (3)(a) if an insured under the policy or certificate:
(3)(b)(i) begins a trip covered under the travel insurance coverage; or
(3)(b)(ii) files a claim under the travel insurance coverage.
(4) (4)(a) An unfair trade practice under Section 31A-23a-402 includes:
(4)(a)(i) offering or selling a travel insurance policy that could never result in payment of a claim for an insured under the policy; or
(4)(a)(ii) marketing blanket travel insurance coverage as free of charge.
(4)(b) It is not an unfair trade practice under Section 31A-23a-402 to market travel insurance directly to a consumer through an insurer's website or through an aggregator site, if:
(4)(b)(i) an accurate summary or short description of coverage is provided on the website; and
(4)(b)(ii) the consumer has access to the full provisions of the policy through electronic means.
(4)(c) If a consumer's destination jurisdiction requires insurance coverage and the consumer is provided proof of the requirement at the time of purchase, it is not an unfair trade practice under Section 31A-23a-402 to require that the consumer choose between the following options as a condition of purchasing a trip or travel package:
(4)(c)(i) 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
(4)(c)(ii) agreeing to obtain and provide proof of coverage that meets the destination jurisdiction's requirements before departure.
(5) (5)(a) A person offering, soliciting, or negotiating travel insurance or a travel protection plan may not offer or sell the travel insurance or travel protection plan on an individual or group basis by using a negative option or an opt out provision.
(5)(b) For purposes of Subsection (5)(a), a negative option or opt out provision occurs when a consumer is required to take an affirmative action to deselect coverage, including unchecking a box on an electronic form, when the consumer purchases a trip.

Legislative History

Enacted by Chapter 364, 2022 General Session