MISSISSIPPI LEGISLATURE
2021 Regular Session
To: Insurance
By: Senator(s) Blackwell
AN ACT RELATING TO THE CREATION OF A COMPREHENSIVE LEGAL FRAMEWORK WITHIN WHICH TRAVEL INSURANCE MAY BE SOLD IN THIS STATE; TO AMEND SECTION 83-83-1, MISSISSIPPI CODE OF 1972, TO CLARIFY THE NAME OF THE ACT; TO CREATE NEW SECTION 83-83-2, MISSISSIPPI CODE OF 1972, TO PROVIDE THE SCOPE AND PURPOSES OF THE ACT; TO AMEND SECTION 83-83-3, MISSISSIPPI CODE OF 1972, TO DEFINE CERTAIN TERMS; TO AMEND SECTION 83-83-5, MISSISSIPPI CODE OF 1972, TO UPDATE THE REQUIREMENTS OF LIMITED LINES TRAVEL INSURANCE PRODUCERS UNDER THE ACT; TO CREATE NEW SECTION 83-83-6, MISSISSIPPI CODE OF 1972, TO CLARIFY THE PREMIUM TAX REQUIREMENTS OF TRAVEL INSURERS UNDER THE ACT; TO CREATE NEW SECTION 83-83-8, MISSISSIPPI CODE OF 1972, TO SET FORTH HOW TRAVEL PROTECTION PLANS MAY BE SOLD IN THIS STATE; TO AMEND SECTION 83-83-9, MISSISSIPPI CODE OF 1972, TO UPDATE THE POLICIES UNDER THE ACT; TO CREATE NEW SECTION 83-83-10, MISSISSIPPI CODE OF 1972, TO PROVIDE THE REQUIREMENTS FOR TRAVEL ADMINISTRATORS UNDER THE ACT; TO AMEND SECTION 83-83-13, MISSISSIPPI CODE OF 1972, TO CLARIFY PERMISSIBLE SALES PRACTICES UNDER THE ACT; TO CREATE NEW SECTION 83-83-15, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE COMMISSIONER OF INSURANCE TO PROMULGATE REGULATIONS TO IMPLEMENT PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-83-1, Mississippi Code of 1972, is amended as follows:
83-83-1. This chapter shall
be known as the " * * *Travel Insurance Act."
SECTION 2. The following shall be codified as Section 83-83-2, Mississippi Code of 1972:
83-83-2. Scope and purposes. (1) The purpose of this chapter is to promote the public welfare by creating a comprehensive legal framework within which travel insurance may be sold in this state.
(2) The requirements of this chapter shall apply to travel insurance which covers any resident of this state, sold, solicited, negotiated, or offered in this state and where policies and certificates are delivered or issued for delivery in this state. It shall not apply to cancellation fee waivers and travel assistance services, except as expressly provided herein.
(3) All other applicable provisions of this state's insurance laws shall continue to apply to travel insurance, except that the specific provisions of this chapter shall supersede any general provisions of law that would otherwise be applicable to travel insurance.
SECTION 3. Section 83-83-3, Mississippi Code of 1972, is amended as follows:
83-83-3. As used in this chapter, unless the context otherwise requires:
(a) "Aggregator site" means a website that provides access to information regarding insurance products from more than one (1) insurer, including product and insurer information, for use in comparison shopping.
(b) "Blanket travel insurance" means a policy of travel insurance issued to any eligible group providing coverage for specific classes of persons defined in the policy with coverage provided to all members of the eligible group without a separate charge to individual members of the eligible group.
(c) "Cancellation fee waiver" means a contractual agreement between a supplier of travel services and its customer to waive some or all of the nonrefundable cancellation fee provisions of the supplier's underlying travel contract with or without regard to the reason for the cancellation or form of reimbursement. A cancellation fee waiver is not insurance.
( * * *d) "Commissioner" means the
Commissioner of Insurance for the State of Mississippi.
(e) "Eligible group" means, solely for the purposes of travel insurance, two (2) or more persons who are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, including, but not limited to, any of the following:
(i) Any entity engaged in the business of providing travel or travel services, including, but not limited to: tour operators, lodging providers, vacation property owners, hotels and resorts, travel clubs, travel agencies, property managers, cultural exchange programs, and common carriers or the operator, owner, or lessor of a means of transportation of passengers, including, but not limited to, airlines, cruise lines, railroads, steamship companies, and public bus carriers, wherein with regard to any particular travel or type of travel or travelers, all members or customers of the group must have a common exposure to risk attendant to such travel;
(ii) Any college, school, or other institution of learning covering students, teachers or employees or volunteers;
(iii) Any employer covering any group of employees, volunteers, contractors, boards of directors, dependents or guests;
(iv) Any sports team, camp, or sponsor thereof
covering participants, members, campers, employees, officials, supervisors or volunteers;
(v) Any religious, charitable, recreational, educational, or civic organization or branch thereof covering any group of members, participants or volunteers;
(vi) Any financial institution or financial institution vendor, or parent holding company, trustee, or agent of or designated by one or more financial institutions or financial institution vendors, including accountholders, credit card holders, debtors, guarantors or purchasers;
(vii) Any incorporated or unincorporated association, including labor unions, having a common interest, constitution and bylaws, and organized and maintained in good faith for purposes other than obtaining insurance for members or participants of such association covering its members;
(viii) Any trust or the trustees of a fund established, created or maintained for the benefit of and covering members, employees or customers, subject to the commissioner's permitting the use of a trust and the state's premium tax provisions in Section 83-83-6 of one or more associations meeting the above requirements of subparagraph (vii) of this paragraph (e);
(ix) Any entertainment production company covering any group of participants, volunteers, audience members, contestants or workers;
(x) Any volunteer fire department, ambulance, rescue, police, court or any first aid, civil defense or other such volunteer group;
(xi) Preschools, daycare institutions for children or adults, and senior citizen clubs;
(xii) Any automobile or truck rental or leasing company covering a group of individuals who may become renters, lessees, or passengers defined by their travel status on the rented or leased vehicles. The common carrier, the operator, owner, or lessor of a means of transportation, or the automobile or truck rental or leasing company, is the policyholder under a policy to which this section applies; or
(xiii) Any other group where the commissioner has determined that the members are engaged in a common enterprise, or have an economic, educational, or social affinity or relationship, and that issuance of the policy would not be contrary to the public interest.
(f) "Fulfillment materials" means documentation sent to the purchaser of a travel protection plan confirming the purchase and providing the travel protection plan's coverage and assistance details.
(g) "Group travel insurance" means travel insurance issued to any eligible group.
( * * *h) "Limited lines travel
insurance producer" means a:
(i) Licensed
managing general agent or third-party administrator; * * *
(ii) Licensed
insurance producer, including a limited lines producer designated by an insurer
as the travel insurance supervising entity as set forth in Section 83-83-11 * * *; or
(iii) Travel administrator.
( * * *i) "Offer and disseminate"
means providing general information, including a description of the coverage
and price, as well as processing the application * * * and collecting premiums, and
performing other nonlicensable activities permitted by the state.
(j) "Primary certificate holder," specific to Section 83-83-6, means an individual person who elects and purchases travel insurance under a group policy.
(k) "Primary policyholder," specific to Section 83-83-6, means an individual person who elects and purchases individual travel insurance.
(1) "Travel administrator" means a person who directly or indirectly underwrites, collects charges, collateral, or premiums from, or adjusts or settles claims on residents of this state, in connection with travel insurance, except that a person shall not be considered a travel administrator if that person's only actions that would otherwise cause it to be considered a travel administrator are among the following:
(i) A person working for a travel administrator to the extent that the person's activities are subject to the supervision and control of the travel administrator;
(ii) An insurance producer selling insurance or engaged in administrative and claims-related activities within the scope of the producer's license;
(iii) A travel retailer offering and disseminating travel insurance and registered under the license of a limited lines travel insurance producer in accordance with this chapter;
(iv) An individual adjusting or settling claims in the normal course of that individual's practice or employment as an attorney-at-law and who does not collect charges or premiums in connection with insurance coverage; or
(v) A business entity that is affiliated with a licensed insurer while acting as a travel administrator for the direct and assumed insurance business of an affiliated insurer.
(m) "Travel assistance services" means noninsurance services for which the consumer is not indemnified based on a fortuitous event, and where providing the service does not result in the transfer or shifting of risk that would constitute the business of insurance. Travel assistance services include, but are not limited to: security advisories; destination information; vaccination and immunization information services; travel reservation services; entertainment; activity and event planning; translation assistance; emergency messaging; international legal and medical referrals; medical case monitoring; coordination of transportation arrangements; emergency cash transfer assistance; medical prescription replacement assistance; passport and travel document replacement assistance; lost luggage assistance; concierge services; and any other service that is furnished in connection with planned travel. Travel assistance services are not insurance and not related to insurance.
( * * *n) "Travel insurance" means
insurance coverage for personal risks incident to planned travel, including,
but not limited to:
(i) Interruption or cancellation of trip or event;
(ii) Loss of baggage or personal effects;
(iii) Damages to
accommodations or rental vehicles; * * *
(iv) Sickness,
accident, disability or death occurring during travel * * *;
(v) Emergency evacuation;
(vi) Repatriation of remains; or
(vii) Any other contractual obligations to indemnify or pay a specified amount to the traveler upon determinable contingencies related to travel as approved by the commissioner.
Travel insurance does not include
major medical plans * * * that provide comprehensive medical protection for
travelers with trips lasting longer than six (6) months * * *, including, for example, those
working or residing overseas as an * * * expatriate or military
personnel being deployed, or any other product that requires a specific
insurance producer license.
(o) "Travel protection plans" means plans that provide one or more of the following: travel insurance, travel assistance services, and cancellation fee waivers.
( * * *p) "Travel retailer" means a
business entity that makes, arranges, or offers planned travel * * * and may offer and disseminate travel
insurance as a service to its customers on behalf of and under the direction of
a limited lines travel insurance producer.
SECTION 4. Section 83-83-5, Mississippi Code of 1972, is amended as follows:
83-83-5. Notwithstanding any other provision of law:
(a) The commissioner may issue to an individual or business entity that has filed with the commissioner an application for such limited license in a form and manner prescribed by the commissioner, a limited lines travel insurance producer license which 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, respectively.
(b) A travel retailer may offer and disseminate travel insurance under a limited lines travel insurance producer business entity ("licensed business entity") license only if the following conditions are met:
(i) The limited lines travel insurance producer or travel retailer provides to purchasers of travel insurance:
1. A description of the material terms or the actual material terms of the insurance coverage;
2. A description of the process for filing a claim;
3. A description of the review or cancellation process for the travel insurance policy; and
4. The identity and contact information of the insurer and limited lines travel insurance producer.
(ii) 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 such register to the Department of Insurance upon reasonable request. The limited lines travel insurance producer shall also certify that the travel retailer registered complies with 18 USC 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.
(iii) 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 limited lines travel insurance producer's compliance with the travel insurance laws, rules and regulations of the state.
(iv) The DRP, president, secretary, treasurer, and any other officer or person who directs or controls the limited lines travel insurance producer's insurance operations comply with the fingerprinting requirements applicable to insurance producers in the resident state of the limited lines travel insurance producer.
(v) The limited lines travel insurance producer has paid all applicable insurance producer licensing fees as set forth in applicable state law.
(vi) The limited lines travel insurance producer requires 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 may be subject to review and approval by the commissioner. The training material shall, at a minimum, contain instructions on the types of insurance offered, ethical sales practices, and required disclosures to prospective customers.
(vii) Limited lines travel insurance producers, and those registered under their license, are exempt from the examination requirements and the continuing education requirements of Chapter 17 of Title 83, Mississippi Code of 1972.
(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:
(i) Provides the identity and contact information of the insurer and the limited lines travel insurance producer;
(ii) Explains that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer; and
(iii) Explains
that an unlicensed travel retailer is permitted to 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 adequacy of the customer's existing
insurance coverage * * *.
(d) A travel retailer's employee or authorized representative, who is not licensed as an insurance producer, may not:
(i) Evaluate or interpret the technical terms, benefits and conditions of the offered travel insurance coverage;
(ii) Evaluate or provide advice concerning a prospective purchaser's existing insurance coverage; or
(iii) Hold himself or itself 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.
SECTION 5. The following shall be codified as Section 83-83-6, Mississippi Code of 1972:
83-83-6. Premium tax. (1) A travel insurer shall pay premium tax, as provided in Section 27-15-103 or Section 27-15-109, on travel insurance premiums paid by any of the following:
(a) An individual primary policyholder who is a resident of this state;
(b) A primary certificate holder who is a resident of this state who elects coverage under a group travel insurance policy; or
(c) A blanket travel insurance policyholder that is a resident in, or has its principal place of business or the principal place of business of an affiliate or subsidiary that has purchased blanket travel insurance in, this state for eligible blanket group members, subject to any apportionment rules which apply to the insurer across multiple taxing jurisdictions or that permits the insurer to allocate premium on an apportioned basis in a reasonable and equitable manner in those jurisdictions.
(2) A travel insurer shall:
(a) Document the state of residence or principal place of business of the policyholder or certificate holder, as required in subsection (1) of this section; and
(b) Report as premium only the amount allocable to travel insurance and not any amounts received for travel assistance services or cancellation fee waivers.
SECTION 6. The following shall be codified as Section 83-83-8, Mississippi Code of 1972:
83-83-8. Travel protection plans. Travel protection plans may be offered for one (1) price for the combined features that the travel protection plan offers in this state if:
(a) The travel protection plan clearly discloses to the consumer at or prior to the time of purchase that it includes travel insurance, travel assistance services, and cancellation fee waivers as applicable, and provides information and an opportunity at or prior to the time of purchase for the consumer to obtain additional information regarding the features and pricing of each; and
(b) The fulfillment materials:
(i) Describe and delineate the travel insurance, travel assistance services, and cancellation fee waivers in the travel protection plan; and
(ii) Include the travel insurance disclosures and the contact information for persons providing travel assistance services and cancellation fee waivers, as applicable.
SECTION 7. Section 83-83-9, Mississippi Code of 1972, is amended as follows:
83-83-9. (1) Notwithstanding any other provision of this title, travel insurance shall be classified and filed for purposes of rates and forms under an inland marine line of insurance; provided, however, that travel insurance that provides coverage for sickness, accident, disability or death occurring during travel, either exclusively or in conjunction with related coverages of emergency evacuation or repatriation of remains, or incidental limited property and casualty benefits such as baggage or trip cancellation, may be filed by an authorized insurer under either an accident and health line of insurance or an inland marine line of insurance.
(2) Travel insurance
may be provided under an individual * * * group or * * * blanket policy.
(3) Eligibility and underwriting standards for travel insurance may be developed and provided based on travel protection plans designed for individual or identified marketing or distribution channels, provided those standards also meet the state's underwriting standards for inland marine.
SECTION 8. The following shall be codified as Section 83-83-10, Mississippi Code of 1972:
83-83-10. Travel administrator. (1) Notwithstanding any other provisions of this title, no person shall act or represent itself as a travel administrator for travel insurance in this state unless that person:
(a) Is a licensed property and casualty insurance producer in this state for activities permitted under that producer license;
(b) Holds a valid managing general agent ("MGA") license in this state; or
(c) Holds a valid third-party administrator ("TPA") license in this state.
(2) A travel administrator and its employees are exempt from the licensing requirements of Section 83—17—401 et seq. for travel insurance it administers.
(3) An insurer is responsible for the acts of a travel administrator administering travel insurance underwritten by the insurer, and is responsible for ensuring that the travel administrator maintains all books and records relevant to the insurer to be made available by the travel administrator to the commissioner upon request.
SECTION 9. Section 83-83-13, Mississippi Code of 1972, is amended as follows:
83-83-13. Sales practices. (1) The limited lines travel insurance producer and any travel retailer offering and disseminating travel insurance under the limited lines travel insurance producer license shall be subject to the provisions of Sections 83-5-29 through 83-5-51 and Section 83-17-71, 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.
(2) Offering or selling a travel insurance policy that could never result in payment of any claims for any insured under the policy is an unfair trade practice under Sections 83-5-29 through 83-5-51.
(3) (a) 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.
(b) 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.
(c) The fulfillment materials and the information described in Section 83-83-5(b)(i) 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 mail or electronic means to the policyholder or certificate holder.
(d) The company shall disclose in the policy documentation and fulfillment materials whether the travel insurance is primary or secondary to other applicable coverage.
(e) Where 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 web page, so long as the consumer has access to the full provisions of the policy through electronic means.
(4) No person offering, soliciting, or negotiating travel insurance or travel protection plans on an individual or group basis may do so by using 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 the consumer purchases a trip.
(5) It shall be an unfair trade practice to market blanket travel insurance coverage as free.
(6) Where 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:
(a) 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
(b) Agreeing to obtain and provide proof of coverage that meets the destination jurisdiction's requirements prior to departure.
SECTION 10. The following shall be codified as Section 83-83-15, Mississippi Code of 1972:
83-83-15. Regulations. The Commissioner of Insurance may promulgate regulations to implement the provisions of this chapter.
SECTION 11. This act shall take effect and be in force from and after July 1, 2021.