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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled HB 168                                                                                                         
01 Amending the definition of travel insurance for the purpose of describing a person eligible for                         
02 a travel insurance limited producer license; and authorizing a person selling travel services to                        
03 transact the business of travel insurance on behalf of and under the direction of a person                              
04 licensed as a travel insurance limited producer.                                                                        
05                           _______________                                                                               
06    * Section 1. AS 21.27.150(a) is amended to read:                                                                   
07            (a)  The director may issue a                                                                                
08                 (1)  travel insurance limited producer license to a person who is                                       
09       appointed under AS 21.27.100 and who sells travel insurance; in this paragraph,                               
10       "travel insurance" has the meaning given in AS 21.27.152 [INSURANCE                                           
11       CONNECTED WITH TRANSPORTATION PROVIDED BY A COMMON                                                                
12       CARRIER, AND LIMITED TO A SPECIFIC TRIP, THAT COVERS                                                              
13                      (A)  TRIP CANCELLATION;                                                                            
14                      (B)  TRIP INTERRUPTION; OR                                                                         
01                      (C)  LIFE, HEALTH, DISABILITY, OR PERSONAL                                                         
02            EFFECTS];                                                                                                    
03                 (2)  title insurance limited producer license to a person whose place of                                
04       business is located in this state and whose sole purpose is to be appointed by and act                            
05       on behalf of a title insurer;                                                                                     
06                 (3)  bail bond limited producer license to a person who is appointed by                                 
07       and acts on behalf of a surety insurer pertaining to bail bonds;                                                  
08                 (4)  motor vehicle rental agency limited producer license to a person                                   
09       and, subject to the approval of the director, to employees of the person licensed that                            
10       the licensee authorizes to transact the business of insurance on the licensee's behalf if,                        
11       as to an employee, the licensee complies with (D) of this paragraph and if the licensee                           
12                      (A)  rents to others, without operators,                                                           
13                           (i)  private passenger motor vehicles, including                                              
14                 passenger vans, minivans, and sport utility vehicles; or                                                
15                           (ii)  cargo motor vehicles, including cargo vans, pickup                                      
16                 trucks, and trucks with a gross vehicle weight of less than 26,000                                      
17                 pounds that do not require the operator to possess a commercial driver's                                
18                 license;                                                                                                
19                      (B)  rents motor vehicles only to persons under rental                                             
20            agreements that do not exceed a term of 90 days;                                                             
21                      (C)  transacts only the following kinds of insurance:                                              
22                           (i)  motor vehicle liability insurance with respect to                                        
23                 liability arising out of the use of a vehicle rented from the licensee                                  
24                 during the term of the rental agreement;                                                                
25                           (ii)  uninsured or underinsured motorist coverage, with                                       
26                 minimum limits described in AS 21.96.020(c) and (d) arising from the                                    
27                 use of a vehicle rented from the licensee during the term of the rental                                 
28                 agreement;                                                                                              
29                           (iii)  insurance against medical, hospital, surgical, and                                     
30                 disability benefits to an injured person and funeral and death benefits to                              
31                 dependents, beneficiaries, or personal representatives of a deceased                                    
01                 person if the insurance is issued as incidental coverage with or                                        
02                 supplemental to liability insurance and arises out of the use of a vehicle                              
03                 rented from the licensee during the term of the rental agreement;                                       
04                           (iv)  personal effects insurance, including loss of use,                                      
05                 with respect to damage to or loss of personal property of a person                                      
06                 renting the vehicle and other vehicle occupants while that property is                                  
07                 being loaded into, transported by, or unloaded from a vehicle rented                                    
08                 from the licensee during the term of the rental agreement;                                              
09                           (v)  towing and roadside assistance with respect to                                           
10                 vehicles rented from the licensee during the term of the rental                                         
11                 agreement; and                                                                                          
12                           (vi)  other insurance as may be authorized by regulation                                      
13                 by the director;                                                                                        
14                      (D)  notifies the director in writing, within 30 days of                                           
15            employment, of the name, date of birth, social security number, location of                                  
16            employment, and home address of an employee authorized by the licensee to                                    
17            transact insurance on the licensee's behalf; and                                                             
18                      (E)  provides other information as required by the director;                                       
19                 (5)  nonresident limited producer license to a person; a license that the                               
20       director issues under this paragraph grants the same scope of authority as a limited                              
21       lines producer license issued to the person by the person's home state;                                           
22                 (6)  credit insurance limited producer license to a person who sells                                    
23       limited lines credit insurance;                                                                                   
24                 (7)  miscellaneous limited producer license to a person who transacts                                   
25       insurance in this state that restricts the person's authority to less than the total authority                    
26       for a line of authority described in AS 21.27.115(1) - (6), (8), and (9).                                         
27    * Sec. 2. AS 21.27 is amended by adding a new section to read:                                                     
28            Sec. 21.27.152. Travel insurance. (a) A person that makes, arranges, or offers                           
29       travel services may transact travel insurance by offering, issuing for delivery, issuing,                         
30       or renewing travel insurance to its customers on behalf of and under the direction of a                           
31       person holding a travel insurance limited producer license under AS 21.27.150.                                    
01            (b)  A person may transact travel insurance under (a) of this section only if the                            
02       person is included in the register maintained by the travel insurance limited producer                            
03       under (e)(1) of this section.                                                                                     
04            (c)  A person transacting travel insurance under (a) of this section may not                                 
05                 (1)  evaluate or interpret the terms, benefits, and conditions of travel                                
06       insurance;                                                                                                        
07                 (2)  evaluate or provide advice concerning a prospective purchaser's                                    
08       existing insurance coverage; or                                                                                   
09                 (3)  represent that the person is a licensed insurer, licensed producer, or                             
10       insurance expert.                                                                                                 
11            (d)  A person transacting travel insurance under (a) of this section shall provide                           
12       to its prospective customers                                                                                      
13                 (1)  a description of the terms of the insurance coverage;                                              
14                 (2)  a description of the claims process;                                                               
15                 (3)  a description of the review and return or cancellation process;                                    
16                 (4)  the identity and contact information for the insurer and the travel                                
17       insurance limited producer;                                                                                       
18                 (5)  notice that a customer is not required to purchase travel insurance                                
19       as a condition to purchasing other travel products or services; and                                               
20                 (6)  a statement that a person transacting travel insurance may provide                                 
21       general information about the insurance offered, including a description of the                                   
22       coverage and price, but is not qualified or authorized to answer questions about the                              
23       terms and conditions of the insurance offered or to evaluate the adequacy of the                                  
24       customer's insurance coverage.                                                                                    
25            (e)  A travel insurance limited producer licensed under this section shall                                   
26                 (1)  maintain, in a format prescribed by the director, a register of each                               
27       person who transacts travel insurance on behalf of and under the direction of the travel                          
28       insurance limited producer and make the register available to the director on request;                            
29       the register must include                                                                                         
30                      (A)  the identity and contact information of the person                                            
31            transacting travel insurance;                                                                                
01                      (B)  the identity of a person who directs or controls the person                                   
02            who transacts travel insurance; and                                                                          
03                      (C)  the federal employment identification number of a person                                      
04            who directs or controls the person who transacts travel insurance;                                           
05                 (2)  certify that the person transacting travel insurance complies with 18                              
06       U.S.C. 1033; and                                                                                                  
07                 (3)  require a person transacting travel insurance satisfactorily to                                    
08       complete a training program that, at a minimum, contains instruction on the type of                               
09       insurance offered, ethical practices, and the disclosures that must be provided to its                            
10       prospective customers; the training program may be reviewed by the director.                                      
11            (f)  A travel insurance limited producer is liable for the acts of a person                                  
12       transacting travel insurance on behalf of and under the direction of the producer. The                            
13       travel insurance limited producer shall designate one of its employees as the person                              
14       responsible for the travel insurance limited producer's compliance with applicable                                
15       travel insurance laws and regulations.                                                                            
16            (g)  Travel insurance may be provided under an individual policy or under a                                  
17       group or master policy.                                                                                           
18            (h)  In this section, "travel insurance"                                                                     
19                 (1)  means insurance coverage for personal risks connected to travel,                                   
20       including                                                                                                         
21                      (A)  trip interruption or cancellation;                                                            
22                      (B)  lost baggage or personal effects;                                                             
23                      (C)  damage to accommodations or rental vehicles; or                                               
24                      (D)  sickness, accident, disability, or death occurring during                                     
25            travel;                                                                                                      
26                 (2)  does not include comprehensive medical insurance that provides                                     
27       coverage during trips lasting six months or longer.                                                               
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