SB 168 — TRAVEL INSURANCE ACT

e t 17 (1) interruption or cancellation of a trip or w l n d 18 an event;

= = 19 (2) loss of baggage or personal effects;

a l i a e r 20 (3) damages to accommodations or rental a t m m 21 vehicles;

d r e 22 (4) sickness, accident, disability or death c e s k 23 occurring during travel;

e a n b 24 (5) emergency evacuation;

u [ (6) repatriation of remains;

or .231575.3 - 7 - STBTC/SB 168 (7) any other contractual obligations to indemnify or pay a specified amount to the traveler upon determinable contingencies related to travel as approved by the superintendent.

"Travel insurance" does not include a major medical plan that provides comprehensive medical protection for travelers with trips lasting longer than six months, including expatriates living or working abroad, or STBTC/SB 168 Page 7 any other product that requires a specific insurance producer license;

Section 59A-12-18.1 NMSA 1978 (being Laws e t 17 2013, Chapter 140, Section 3, as amended) is recompiled in the w l n d 18 Travel Insurance Act and is amended to read:

= = 19 "LIMITED LINES TRAVEL INSURANCE PRODUCER LICENSE.-- a l i a e r 20 A.

The superintendent may issue a limited lines a t m m 21 travel insurance producer license to [applicants] an applicant d r e 22 who [are] is qualified to solicit or sell travel insurance.

c e s k 23 B.

A travel retailer may offer travel insurance e a n b 24 under the license of a limited lines travel insurance producer u [ only if:

.231575.3 - 8 - STBTC/SB 168 (1) the limited lines travel insurance producer or travel retailer provides to purchasers of travel insurance:

(b) a description of the process for STBTC/SB 168 Page 8 filing a claim;

(a) establishes at the time of licensure on a form prescribed by the superintendent a register of each travel retailer that offers travel insurance on behalf of the e t 17 limited lines travel insurance producer;

w l n d 18 (b) includes in the register each travel = = 19 retailer's federal tax identification number and the name, a l i a e r 20 address and contact information of each travel retailer and an a t m m 21 officer or person who directs or controls the travel retailer's d r e 22 operations;

c e s k 23 (c) maintains the register and updates e a n b 24 it at least once a year;

u [ (d) submits the register to the .231575.3 - 9 - STBTC/SB 168 superintendent upon reasonable request;

(3) the limited lines travel insurance producer has selected a designated responsible agent who is STBTC/SB 168 Page 9 one of its licensed individual insurance producer employees and who is responsible for the limited lines travel insurance producer's compliance with the travel insurance laws and rules of this state;

(5) the limited lines travel insurance e t 17 producer has paid all applicable insurance producer licensing w l n d 18 fees pursuant to state law;

and = = 19 (6) the limited lines travel insurance a l i a e r 20 producer requires each employee and authorized representative a t m m 21 of the travel retailer whose duties include offering and d r e 22 disseminating travel insurance to receive a program of c e s k 23 instruction or training that the superintendent may review and e a n b 24 that, at a minimum, contains instructions on the types of u [ insurance offered, ethical sales practices and required .231575.3 - 10 - STBTC/SB 168 disclosures to prospective customers.

STBTC/SB 168 Page 10 (1) identify and provide the contact information of the insurer and the limited lines travel insurance producer;

and (3) explain that an unlicensed travel retailer may provide 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 e t 17 adequacy of the customer's existing insurance coverage.

w l n d 18 D.

A travel retailer's employee or authorized = = 19 representative who is not licensed as an insurance producer a l i a e r 20 shall not:

a t m m 21 (1) evaluate or interpret the technical terms, d r e 22 benefits or conditions of the travel insurance coverage c e s k 23 offered;

e a n b 24 (2) evaluate or provide advice concerning a u [ prospective purchaser's existing insurance coverage;

or .231575.3 - 11 - STBTC/SB 168 (3) make representation as being a licensed insurer, licensed insurance producer or insurance expert.

A travel retailer and its employees and authorized representatives whose insurance-related activities STBTC/SB 168 Page 11 are limited to the offering and disseminating of travel insurance on behalf of and under the direction of a limited lines travel insurance producer that complies with this section may conduct and receive compensation for those activities.

As the insurer designee, a limited lines travel insurance producer shall be responsible for the acts of the travel retailer and shall use reasonable means to ensure that the travel retailer complies with the provisions of [this section] the Travel Insurance Act.Act." SECTION 4.

[H.

As used in this section:

e t 17 (1) "limited lines travel insurance producer" w l n d 18 means a licensed managing general agent or third-party = = 19 administrator or a licensed insurance producer;

a l i a e r 20 (2) "offer and disseminate" means providing a t m m 21 general information, including a description of coverage and d r e 22 price, processing applications, collecting premiums and c e s k 23 performing other nonlicensable activities permitted by this e a n b 24 state;

u [ (3) "travel insurance" means insurance .231575.3 - 12 - STBTC/SB 168 coverage for personal risks incident to planned travel, including the interruption or cancellation of a trip or event;

the loss of baggage or personal effects;

damage to accommodations or rental vehicles;

or sickness, accident, disability or death during travel.

"Travel insurance" does not include major medical plans that provide comprehensive medical protection for travelers on trips of six months or longer, such as for those working overseas as expatriates or deployed military personnel;

and (4) "travel retailer" means a business entity that makes, arranges or offers travel services.]" SECTION 4.

"[NEW"POLICY.-- MATERIAL] POLICY.-- A.

Travel insurance shall be classified and filed for purposes of rates and forms under an inland marine line of e t 17 insurance.

w l n d 18 B.

Travel insurance may be in the form of an = = 19 individual, a group or a blanket policy.

a l i a e r 20 C.

Eligibility and underwriting standards for a t m m 21 travel insurance may be developed and provided based on travel d r e 22 protection plans designed for individual or identified c e s k 23 marketing or distribution channels;

provided that those e a n b 24 standards also meet the state's underwriting standards for uSTBTC/SB [168 Page 12 inland marine insurance." .231575.3 - 13 - STBTC/SB 168 SECTION 5.

"[NEW"TRAVEL MATERIAL] TRAVEL PROTECTION PLANS.--A travel protection plan may be offered for one price for the combined features that the travel protection plan offers in this state if:

e t 17 (1) describe and delineate the travel w l n d 18 insurance, travel assistance services and cancellation fee = = 19 waivers in the travel protection plan;

and a l i a e r 20 (2) include the travel insurance disclosures a t m m 21 and contact information for persons providing travel assistance d r e 22 services and cancellation fee waivers, as applicable." c e s k 23 SECTION 6.

A new section of the New Mexico Insurance Code e a n b 24 is enacted to read:

uSTBTC/SB [168 "[NEWPage MATERIAL]13 SALES"SALES PRACTICES.-- .231575.3 - 14 - STBTC/SB 168 A.

Fulfillment materials shall disclose whether the e t 17 travel insurance is primary or secondary to other applicable w l n d 18 coverage.

= = 19 E.

A policyholder or certificate holder may cancel a l i a e r 20 a policy or certificate in accordance with the provisions of a t m m 21 Section 59A-45-11 NMSA 1978." d r e 22 SECTION 7.

A new section of the New Mexico Insurance Code c e s k 23 is enacted to read:

e"PERMISSIBLE aPRACTICES.-- nSTBTC/SB b168 24Page "[NEW14 MATERIAL] PERMISSIBLE PRACTICES.-- u [ A.

An insurer may market travel insurance directly .231575.3 - 15 - STBTC/SB 168 to a consumer through the insurer's website or through an aggregator website so long as an accurate summary or short description of coverage is provided and the consumer has access to the full policy through electronic means.

Permissible practices described in this section e t 17 shall not constitute an unfair claims practice pursuant to the w l n d 18 provisions of Section 59A-16-20 NMSA 1978." = = 19 SECTION 8.

A new section of the New Mexico Insurance Code a l i a e r 20 is enacted to read:

a"TRAVEL t m m 21 "[NEW MATERIAL] TRAVEL ADMINISTRATION.-- d r e 22 A.

A person shall not act or represent the person's c e s k 23 self as a travel administrator for travel insurance in this e a n b 24 state unless that person:

uSTBTC/SB [168 Page 15 (1) is a licensed property and casualty .231575.3 - 16 - STBTC/SB 168 insurance producer in this state for activities permitted under that producer license;

"[NEW"RULES.--The MATERIAL] RULES.--The superintendent may promulgate rules to implement the provisions of the Travel Insurance Act." e t 17 SECTION 10.

Section 59A-16-20 NMSA 1978 (being Laws 1984, w l n d 18 Chapter 127, Section 286, as amended) is amended to read:

= = 19 "59A-16-20.

UNFAIR CLAIMS PRACTICES DEFINED AND a l i a e r 20 PROHIBITED.--Any [and all] of the following practices with a t m m 21 respect to claims, by an insurer or other person, knowingly d r e 22 committed or performed with such frequency as to indicate a c e s k 23 general business practice are defined as unfair and deceptive eSTBTC/SB a168 nPage b16 24 practices and are prohibited:

u [ A.

misrepresenting to insureds pertinent facts or .231575.3 - 17 - STBTC/SB 168 policy provisions relating to coverages at issue;

failing to settle all catastrophic claims within a ninety-day period after the assignment of a catastrophic e t 17 claim number when a catastrophic loss has been declared;

w l n d 18 G.

compelling insureds to institute litigation to = = 19 recover amounts due under policy by offering substantially less a l i a e r 20 than the amounts ultimately recovered in actions brought by a t m m 21 such insureds when such insureds have made claims for amounts d r e 22 reasonably similar to amounts ultimately recovered;

cSTBTC/SB e168 sPage k17 23 H.

attempting to settle a claim by an insured for e a n b 24 less than the amount to which a reasonable person would have u [ believed [he] the insured was entitled by reference to written .231575.3 - 18 - STBTC/SB 168 or printed advertising material accompanying or made part of an application;

attempting to settle claims on the basis of an application that was altered without notice to, or knowledge or consent of, the insured, [his] the insured's representative, agent or broker;

delaying the investigation or payment of claims by requiring an insured, claimant or the physician of either to e t 17 submit a preliminary claim report and then requiring the w l n d 18 subsequent submission of formal proof of loss forms, both of = = 19 which submissions contain substantially the same information;

a l i a e r 20 M.

failing to settle an insured's claims promptly a t m m 21 where liability has become apparent under one portion of the d r e 22 policy coverage in order to influence settlement under other cSTBTC/SB e168 sPage k18 23 portions of the policy coverage;

e a n b 24 N.

failing to promptly provide an insured a u [ reasonable explanation of the basis relied on in the policy in .231575.3 - 19 - STBTC/SB 168 relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement;

[or] O.

offering, soliciting or negotiating travel insurance or a travel protection plan by using a negative option or opt out that requires the consumer to take an affirmative action to deselect coverage." -STBTC/SB 20168 -Page 12 14 16 e t 17 w l n d 18 = = 19 a25 l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .231575.3