An Act Regarding Travel Insurance in the Maine Insurance Code (AFTER DEADLINE)
Maine Legislature, Session 129, LD 2143
Committee: Health Coverage, Insurance and Financial Services
Sponsors: MORRIS
Amends: 24-A MRSA §1420-F, 24-A MRSA §7051, 24-A MRSA §7051-A, 24-A MRSA §7052, 24-A MRSA §7052-A, 24-A MRSA §7053, 24-A MRSA §7054, 24-A MRSA §7056, 24-A MRSA §7057, 24-A MRSA §7058, 24-A MRSA §7059, 24-A MRSA §7060, 24-A MRSA §7061

Legislative Document
No. 2143
H.P. 1532
House of Representatives, March 10, 2020
An Act Regarding Travel Insurance in the Maine Insurance Code
(AFTER DEADLINE)
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205.
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative MORRIS of Turner.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  24-A MRSA §1420-F, sub-§1, ¶H, as repealed and replaced by PL 2015, 
c. 133, §2, is amended to read:
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.;
(5)  Emergency evacuation;
(6)  Repatriation of remains; or
(7)  Any other contractual obligations to indemnify or pay a specified amount to a 
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 on trips lasting longer than 6 months or longer, 
including travelers working or residing overseas as expatriates, or any other product 
that requires a specific insurance producer license;
Sec. 2.  24-A MRSA c. 90, headnote is amended to read:
CHAPTER 90
LIMITED LINES TRAVEL INSURANCE
Sec. 3.  24-A MRSA §7051, as enacted by PL 2015, c. 133, §4, is amended to 
read:
§7051.  Short title
This chapter may be known and cited as "the Limited Lines Travel Insurance Act."
Sec. 4.  24-A MRSA §7051-A is enacted to read:
§7051-A.  Applicability of chapter
1.  Applicability.  The requirements of this chapter apply to travel insurance that 
covers any resident of this State; that is sold, solicited, negotiated or offered in this State; 
and for which policies and certificates are delivered or issued for delivery in this State.  
This chapter does not apply to cancellation fee waivers or travel assistance services, 
except as expressly provided in this chapter.
2.  Application of other laws.  All other applicable provisions of this State's 
insurance laws apply to travel insurance except that the specific provisions of this chapter 
supersede any general provisions of law that would otherwise be applicable to travel 
insurance.
Sec. 5.  24-A MRSA §7052, as enacted by PL 2015, c. 133, §4, is repealed.
Sec. 6.  24-A MRSA §7052-A is enacted to read:
§7052-A.  Definitions
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Aggregator site.  "Aggregator site" means a website that provides access to 
information regarding insurance products from more than one insurer, including product 
and insurer information, for use in comparison shopping.
2.  Blanket travel insurance.  "Blanket travel insurance" means a policy of group 
travel insurance that provides coverage for specific classes of persons defined in the 
policy under which coverage is provided to all members of the eligible group without a 
separate charge to individual members of the eligible group.
3.  Cancellation fee waiver.  "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.
4.  Designated responsible producer.  "Designated responsible producer" means the 
individual licensed producer responsible for ensuring compliance by the supervising 
travel insurance producer and its registrants with travel insurance laws and rules of the 
State.
5.  Eligible group.  "Eligible group" means 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:
A.  An 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 entity 
have a common exposure to risk attendant to such travel, covering all members or 
customers of the entity;
B.  A college, school or other institution of learning, covering students, teachers, 
employees or volunteers;
C.  An employer, covering any group of employees, volunteers, contractors, boards of 
directors, dependents or guests;
D.  A sports team, camp or sponsor of a sports team or camp, covering participants, 
members, campers, employees, officials, supervisors or volunteers;
E.  A religious, charitable, recreational, educational or civic organization or branch 
thereof, covering any group of members, participants or volunteers;
F.  A 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 account holders, credit card holders, debtors, guarantors 
or purchasers;
G.  An incorporated or unincorporated association, including a labor union, 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;
H.  A trust or the trustees of a fund established, created or maintained for the benefit 
of and covering members, employees or customers of one or more associations 
meeting the requirements of paragraph G, subject to the superintendent's permitting 
the use of the trust and the premium tax provisions in section 7057;
I.  An entertainment production company, covering any group of participants, 
volunteers, audience members, contestants, employees or contractors;
J.  A volunteer fire department or an ambulance, rescue, police, court, first aid or civil 
defense volunteer group or other similar volunteer group;
K.  A preschool, daycare institution for children or adults or senior citizen club;
L.  An automobile or truck rental or leasing company, covering a group of individuals 
who may become renters, lessees or passengers, as defined by their travel status with 
regard to the rented or leased vehicles, as long as the automobile or truck rental or 
leasing company is the policyholder under a policy to which this chapter applies; or
M.  Any other group with regard to which the superintendent 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.
6.  Fulfillment materials.  "Fulfillment materials" means documentation provided to 
the purchaser of a travel protection plan confirming the purchase and providing the travel 
protection plan's coverage and travel assistance services details.
7.  Group travel insurance.  "Group travel insurance" means travel insurance issued 
to an eligible group.
8.  Offer and disseminate.  "Offer and disseminate" means to provide general 
information, including a description of the coverage and price, as well as to process the 
application and collect premiums.
9.  Primary certificate holder.  "Primary certificate holder" means an individual 
who elects and purchases travel insurance under a group travel insurance policy.
10.  Primary policyholder.  "Primary policyholder" means an individual who elects 
and purchases individual travel insurance.
11.  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.  
"Supervising travel insurance producer" includes a:
A.  Licensed managing general agent or 3rd-party administrator;
B.  Licensed insurance producer, including a limited lines producer; or
C.  Travel administrator.
12.  Travel administrator.  "Travel administrator" means a person that directly or 
indirectly underwrites, collects charges, collateral or premiums from or adjusts or settles 
claims on residents of the State in connection with travel insurance, except that a person 
is not a travel administrator if that person's only actions that would otherwise cause that 
person to be a travel administrator are among the following:
A.  The person works for a travel administrator, if the person's activities are subject to 
the supervision and control of the travel administrator;
B.  The person is an insurance producer selling insurance or engaged in 
administrative and claims-related activities within the scope of the insurance 
producer's license;
C.  The person is a travel retailer offering and disseminating travel insurance and is 
registered under the license of a supervising travel insurance producer in accordance 
with this chapter;
D.  The person is 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; and
E.  The person is a business entity that is affiliated with a licensed insurer and acts as 
a travel administrator for the direct and assumed insurance business of the affiliated 
insurer.
13.  Travel assistance services.  "Travel assistance services" means noninsurance 
services for which the consumer is not indemnified against a fortuitous event and for 
which providing the services does not result in transfer or shifting of risk that would 
constitute the business of insurance.  "Travel assistance services" includes, but is 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 services that are furnished in connection with planned travel.  Travel 
assistance services are not insurance and not related to insurance.
14.  Travel insurance.  "Travel insurance" means insurance coverage as defined in 
section 1420-F, subsection 1, paragraph H.
15.  Travel protection plan.  "Travel protection plan" means a plan that provides one 
or more of the following: travel insurance, travel assistance services and a cancellation 
fee waiver.
16.  Travel retailer.  "Travel retailer" means a business entity that makes, arranges 
or offers planned travel and that may offer and disseminate travel insurance as a service 
to its customers on behalf of and under the direction of a supervising travel insurance 
producer.
Sec. 7.  24-A MRSA §7053, sub-§1, as enacted by PL 2015, c. 133, §4, is 
repealed and the following enacted in its place:
1.  Issuance of license.  Licenses to sell, solicit or negotiate travel insurance are 
governed by this subsection.
A.  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.  A person may not act as a supervising travel 
insurance producer or travel retailer unless properly licensed or registered, 
respectively.
B.  A person licensed in a major line of authority as an insurance producer may 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.
Sec. 8.  24-A MRSA §7053, sub-§3, as enacted by PL 2015, c. 133, §4, is 
amended to read:
3.  Compensation.  If Notwithstanding any provision of law to the contrary, 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 and 
authorized representatives are permitted to receive related compensation on sales made in 
accordance with this chapter.
Sec. 9.  24-A MRSA §7054, sub-§1, as enacted by PL 2015, c. 133, §4, is 
amended to read:
1.  Disclosure.  The supervising travel insurance producer or travel retailer shall 
provide to purchasers of travel insurance brochures or other written materials that have 
been approved by the travel insurer and 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.
Sec. 10.  24-A MRSA §7054, sub-§2, as enacted by PL 2015, c. 133, §4, is 
amended to read:
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.  The grounds for suspension and revocation and the 
penalties applicable to insurance producers under section 1420-K are applicable to 
supervising travel insurance producers and travel retailers.
Sec. 11.  24-A MRSA §7054, sub-§6, as enacted by PL 2015, c. 133, §4, is 
amended to read:
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 and approval 
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.
Sec. 12.  24-A MRSA §7056, as enacted by PL 2015, c. 133, §4, is amended to 
read:
§7056.  Policy; responsibilities; enforcement; standards
1.  Policy.  Notwithstanding any provision of this Title to the contrary, travel 
insurance must be classified and filed for purposes of rates and forms under an inland 
marine line of insurance, except 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 
under either an accident and health line of insurance or an inland marine line of 
insurance.  Travel insurance may be provided under an individual policy or under a group 
or master blanket travel insurance policy.
2.  Responsibility.   A  As the insurer's designee, 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.
4.  Eligibility and underwriting standards.  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, as long as those 
standards also meet the State's underwriting standards for inland marine lines of 
insurance.
Sec. 13.  24-A MRSA §7057 is enacted to read:
§7057.  Premium tax
1.  Paying premium tax.  An insurer shall pay premium tax as provided in Title 36, 
section 2513 on travel insurance premiums paid by any of the following:
A.  A primary policyholder who is a resident of the State;
B.  A primary certificate holder who is a resident of the State; or
C.  A blanket travel insurance policyholder that is a resident in the State or has its 
principal place of business in the State, or in the case of an affiliate's or subsidiary's 
purchasing blanket travel insurance for eligible blanket group members, the 
policyholder's affiliate or subsidiary has its principal place of business in the State, 
subject to any apportionment rules that apply to the insurer across multiple taxing 
jurisdictions or that permit the insurer to allocate premiums on an apportioned basis 
in a reasonable and equitable manner in those jurisdictions.
2.  Insurer requirements.  An insurer shall:
A.  Document the state of residence or principal place of business of the policyholder 
or certificate holder described in subsection 1; and
B.  Report as premiums only the amount allocable to travel insurance and not any 
amounts received for travel assistance services or cancellation fee waivers.
Sec. 14.  24-A MRSA §7058 is enacted to read:
§7058.  Travel protection plans
A travel protection plan composed of combined features may be offered for one price 
if:
1.  Disclosures.  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
2.  Fulfillment material requirements.  The fulfillment materials:
A.  Describe and delineate the travel insurance, travel assistance services and 
cancellation fee waivers in the travel protection plan; and
B.  Include the travel insurance disclosures under subsection 1 and the contact 
information for persons providing travel assistance services and cancellation fee 
waivers, as applicable.
Sec. 15.  24-A MRSA §7059 is enacted to read:
§7059.  Sales practices
1.  Trade practices and frauds applicability.  All persons offering travel insurance 
to residents of this State are subject to chapter 23, 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 control.
2.  Illusory travel insurance.   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 chapter 23.
3.  Marketing.  All persons offering travel insurance to residents of this State shall 
comply with the marketing requirements in this subsection.
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, must be consistent with the travel insurance policy, 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 must be provided prior to the time of purchase and in the 
fulfillment materials.
C.  The fulfillment materials and the information described in section 7054, 
subsection 1, paragraphs A, D and E must be provided to a primary policyholder or 
primary 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 primary policyholder or primary 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:
(1)  Fifteen days following the date of delivery of the travel protection plan's 
fulfillment materials by mail; or
(2)  Ten days following the date of delivery of the travel protection plan's 
fulfillment materials by means other than mail.
For the purposes of this paragraph, "delivery" means handing fulfillment materials to 
the primary policyholder or primary certificate holder or sending fulfillment materials 
by mail or electronic means to the primary policyholder or primary certificate holder.
D.  The insurer shall disclose in the policy documentation and fulfillment materials 
whether the travel insurance is primary or secondary to other applicable coverage.
E.  When travel insurance is marketed directly to a consumer through an insurer's 
website or by others through an aggregator site, it is not an unfair trade practice or 
other violation of law for an accurate summary or short description of coverage to be 
provided on the website, so long as the consumer has access to the full provisions of 
the policy through electronic means.
4.  Opt-out format.  A person offering, soliciting or negotiating travel insurance or 
travel protection plans on an individual or group basis may not do so by using a negative 
option or opt-out format that requires 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.  Blanket travel insurance.  It is an unfair trade practice to market blanket travel 
insurance coverage as free.
6.  Jurisdiction dictating coverage.  When a consumer's destination jurisdiction 
requires insurance coverage, it is not 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 supervising 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.
Sec. 16.  24-A MRSA §7060 is enacted to read:
§7060.  Travel administrators
1.  License required.  Notwithstanding any provision of this Title to the contrary, a 
person may not act or represent itself as a travel administrator for travel insurance in the 
State unless that person:
A.  Is a licensed property and casualty insurance producer in the State for activities 
permitted under that producer license;
B.  Holds a valid managing general agent license in the State; or
C.  Holds a valid 3rd-party administrator license in the State.
2.  Exemption from adjuster license requirements.  A travel administrator and its 
employees are exempt from the licensing requirements for adjusters in chapter 16 for 
travel insurance the travel administrator administers.
3.  Insurer responsible.  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 
superintendent upon request.
Sec. 17.  24-A MRSA §7061 is enacted to read:
§7061.  Rulemaking
The superintendent may adopt rules to implement the provisions of this chapter.
SUMMARY
This bill amends the laws governing the sale of travel insurance in the State.  The bill:
1.  Defines necessary terms;
2.  Provides that travel insurance must be classified and filed under an inland marine 
line of insurance subject to certain exceptions;
3.  Amends the license requirements for selling travel insurance;
4.  Assesses a premium tax on travel insurance premiums and establishes reporting 
requirements;
5.  Establishes requirements for travel protection plans;
6.  Establishes sales practices for travel insurers;
7.  Establishes requirements for travel administrators for travel insurance; and
8.  Authorizes the Superintendent of Insurance to adopt rules relating to the sale of 
travel insurance.