An Act Regarding Travel Insurance in the Maine Insurance Code
Maine Legislature, Session 127, LD 0975
Committee Amendment CA_A_H119 (House)
Amends: 24-A MRSA §601, 24-A MRSA §1420-F, 24-A MRSA §1420-H

COMMITTEE AMENDMENT "A" to H.P. 672, L.D. 975, Bill, "An Act 
Regarding Travel Insurance in the Maine Insurance Code" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 24-A MRSA §601, sub-§31 is enacted to read: 
31. Supervising travel insurance producer. Supervising travel insurance producer 
licensing fees may not exceed: 
A. Original license issuance fee, $500; and 
B. Annual renewal fee, $300. 
Sec. 2. 24-A MRSA §1420-F, sub-§l, ~, as enacted by PL 2001, c. 259, §24, 
is repealed and the following enacted in its place: 
H. Travel insurance, which is a limited line and which means insurance coverage for 
personal risks incident to planned travel, including but not limited to: 
(1) Interruption or cancellation of a trip or event; 
(2) Loss of baggage or personal effects; 
(3) Damages to accommodations or rental vehicles; or 
(4) Sickness, accident, disability or death occurring during travel. 
Travel insurance does not include a major medical plan that provides comprehensive 
medical protection for travelers on trips lasting 6 months or longer; 
Sec. 3. 24-A MRSA §1420-H, sub-§3, ,B, as enacted by PL 2001, c. 259, §24, 
is amended to read: 
B. An applicant for a license as a limited insurance producer who solicits or sells 
travel and baggage insurance; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT·A "to H.P. 672, L.D. 975 
Sec. 4. 24-A MRS A c. 90 is enacted to read: 
CHAPTER 90 
LIMITED LINES TRAVEL INSURANCE 
§7051. Short title 
This chapter may be known and cited as "the Limited Lines Travel Insurance Act. " 
§7052. Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1. Designated responsible producer. "Designated responsible producer" means the 
individual licensed producer responsible for ensuring compliance by the supervising 
travel insurance producer with travel insurance laws and rules of the State. 
2. 
Offer and disseminate. 
"Offer and disseminate" means providing general 
information, including a description of the coverage and price, as well as processing the 
application and collecting premiums. 
3. Supervising travel insurance producer. "Supervising travel insurance producer" 
means a business entity licensed in accordance with this chapter to sell, solicit and 
negotiate travel insurance that is offered and disseminated by travel retailers. 
4. Travel insurance. "Travel insurance" means insurance coverage as defined in 
section 1420-F, subsection 1, paragraph H. 
5. Travel retailer. "Travel retailer" means a business entity that makes, arranges or 
offers travel services. 
§7053. Licensure; nonlicensed activities; compensation 
1. Issuance of license. Upon receipt of an application in the form and manner 
prescribed by the superintendent. the superintendent may issue a supervising travel 
insurance producer license, which is a limited license, to a business entity authorizing the 
business entity to sell, solicit or negotiate travel insurance as a supervising travel 
insurance producer on behalf of a licensed insurer. 
2. 
Nonlicensed activities. 
A travel retailer or its employees or authorized 
representatives do not need a license under this chapter if the retailer is on the registry, as 
provided in section 7054, subsection 2, and the insurance-related activities of the travel 
retailer, its employees and authorized representatives are limited to offering and 
disseminating travel insurance in compliance with this chapter. 
3. Compensation. If the insurance-related activities of a travel retailer and its 
employees and authorized representatives are limited to offering and disseminating travel 
insurance on behalf of and under the direction of a supervising travel insurance producer, 
and the travel retailer is registered pursuant to section 7054, subsection 2, the travel 
retailer and its employees are permitted to receive related compensation on sales made in 
accordance with this chapter. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,A "to H.P. 672, L.D. 975 
§7054. Requirements 
A travel retailer is authorized to offer and disseminate travel insurance on behalf of 
and under the authority of a supervising travel insurance producer if the following 
requirements are met. 
1. Disclosure. The supervising travel insurance producer or travel retailer shall 
provide to purchasers of travel insurance brochures or other written materials that 
include: 
A. A description of the material terms of the insurance coverage including: 
(1) 
The identity and contact information of the insurer, supervising travel 
insurance producer and designated responsible producer; 
(2) The amount of any applicable deductible and how it is to be paid; 
(3) The benefits of the coverage; and 
(4) Key terms and conditions of coverage; 
B. An explanation that the purchase of travel insurance is not required in order to 
purchase any other product or service from the travel retailer; 
C. An explanation that a travel retailer that is not licensed as an insurance producer is 
only permitted to provide general information about the insurance offered by the 
supervising travel insurance producer or insurer, 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 description of the process for filing a claim; and 
E. A description of the review or cancellation process for the travel insurance policy. 
2. Registry of travel retailers. The supervising travel insurance producer shall 
establish and update a register on a form prescribed by the superintendent of each travel 
retailer that offers travel insurance on the supervising travel insurance producer's behalf. 
The register must 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 employer identification number. The supervising travel insurance 
producer shall submit the register to the superintendent upon request. The supervising 
travel insurance producer shall certify that the registered travel retailer complies with 18 
United States Code, Section 1033. 
3. Designated responsible producer. The supervising travel insurance producer 
shall designate one of its employees who is a licensed insurance producer under chapter 
16, subchapter 2-A as the designated responsible producer. 
4. 
License continuation or termination. 
Each supervising travel insurance 
producer license issued under this chapter is subject to section 1416-A. 
5. Fees. The supervising travel insurance producer shall pay all applicable insurance 
producer licensing fees as set forth in section 601, subsection 31. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 672, L.D. 975 
6. Training. The supervising travel insurance producer shall require each employee 
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 by the 
superintendent. The training material must, at a minimum, contain instructions on the 
types of insurance offered, ethical sales practices and required brochures or other written 
materials provided to prospective customers. 
§7055. Prohibited acts 
An employee or representative of a travel retailer who is not licensed as an insurance 
producer may not: 
1. 
Technical terms. 
Evaluate or interpret the technical terms, benefits and 
conditions of the offered travel insurance coverage; 
2. Advice. Evaluate or provide advice concerning a prospective purchaser's existing 
insurance coverage; or 
3. Purport to be licensed. Purport to be a licensed insurer, licensed producer or 
insurance expert or represent that the travel retailer is so licensed or has insurance 
expertise. 
§7056. Policy; responsibilities; enforcement 
1. Policy. Travel insurance may be provided under an individual policy or under a 
group or master policy. 
2. Responsibility. A supervising travel insurance producer is responsible for the 
acts of a travel retailer offering and disseminating travel insurance under the supervising 
travel insurance producer's authority and shall use reasonable means to ensure 
compliance by the travel retailer with this chapter. 
3. Enforcement. A supervising travel insurance producer and any travel retailer 
offering and disseminating travel insurance are subject to chapters 16 and 23.' 
SUMMARY 
This amendment replaces the bill. The amendment establishes a supervising travel 
insurance producer license under the Maine Insurance Code. 
Like the bill, the 
amendment regulates the practice of providing travel insurance to consumers in the State 
and sets out the requirements for allowing a travel retailer to offer and disseminate travel 
insurance. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 04/29115 
;Wac.. 
LD975 
LR 1451(02) 
An Act Regarding Travel Insurance in the Maine Insurance Code 
Fiscal Note for Bill as Amended by Committee Amendment;tt' (~-\ \ 9; 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Minor revenue increase - Other Special Revenue Funds 
Any additional costs to the DepartmentofProfessional and Financial Regulation from the provisions of this bill are 
expected to be minor and can be absorbed within existing budgeted resources. 
Any additional revenue received by the Department of Professional and Financial Regulation related to the changes in 
this bill are expected to be minor. 
LRI45 1(02) - Fiscal Note - Page I of I