An Act Regarding Travel Insurance in the Maine Insurance Code
Maine Legislature, Session 130, LD 1563
Committee: Health Coverage, Insurance and Financial Services
Sponsors: SANBORN
Amends: 24-A MRSA §708, 24-A MRSA §1420-F, 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. 1563
S.P. 506
In Senate, April 27, 2021
An Act Regarding Travel Insurance in the Maine Insurance Code
Received by the Secretary of the Senate on April 23, 2021.  Referred to the Committee on 
Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator SANBORN of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  24-A MRSA §708, sub-§1, ¶B, as enacted by PL 1969, c. 132, §1, is 
amended to read:
B.  "Marine protection and indemnity insurance," meaning insurance against, or against 
legal liability of the insured for, loss, damage or expense arising out of, or incident to, 
the ownership, operation, chartering, maintenance, use, repair or construction of any 
vessel, craft or instrumentality in use in ocean or inland waterways, including liability 
of the insured for personal injury, illness or death or for loss of or damage to the 
property of another person.; and
Sec. 2.  24-A MRSA §708, sub-§1, ¶C is enacted to read:
C.  Travel insurance as described in section 1420-F, subsection 1, paragraph H.
Sec. 3.  24-A MRSA §1420-F, sub-§1, ¶H, as repealed and replaced by PL 2015, 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. 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 that 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, day care 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; and
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 baggage 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 unless licensed under this subsection or as provided in section 7052-A, 
subsection 11.  A travel retailer may not sell, solicit or negotiate travel insurance unless 
licensed as a producer or registered in accordance with section 7054, subsection 2.
B.  A person licensed in a major line of authority as an insurance producer may sell, 
solicit and 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 supervising travel insurance producer 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; grounds for suspension and revocation; penalties.  
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 §7054, sub-§7 is enacted to read:
7.  Notice to the superintendent.  Any business entity acting as a supervising travel 
insurance producer without being specifically licensed as such in accordance with section 
7053, subsection 1 shall provide notice to the superintendent of the following:
A.  The fact that the business entity is acting as a supervising travel insurance producer;
B.  The identity of any travel retailers that offer travel insurance on the business entity's 
behalf in accordance with subsection 2; and
C.  The name and license number of the business entity's designated responsible 
producer.
The notice required by this subsection must be provided within 30 days of the 
commencement of the business entity's supervising travel insurance producer activities in 
the State on a form required by the superintendent.
Sec. 13.  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 
rates and forms must be filed with the superintendent.  For purposes of such filings, travel 
insurance must be classified and filed for purposes of rates and forms as inland marine 
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 lost baggage or trip cancellation, may, subject to the 
superintendent's discretion, be filed as either health insurance or inland marine 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 insurance.
Sec. 14.  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; and
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 travel insurance 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. 15.  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. 16.  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.  Deceptive 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 policy summaries, 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 a reasonable opportunity to learn more about the 
preexisting condition exclusions must be provided prior to the time of purchase and in 
the fulfillment materials under section 7058, subsection 2.
C.  The fulfillment materials under section 7058, subsection 2 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 or through an aggregator site, 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. 17.  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, including any affiliate of the 
insurer acting as a travel administrator for the direct and assumed insurance business of the 
affiliated 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. 18.  24-A MRSA §7061 is enacted to read:
§7061.  Rulemaking
The superintendent may adopt rules to implement the provisions of this chapter.  Rules 
adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A.
SUMMARY
This bill amends the laws governing the sale of travel insurance in the State.  The bill:
1.  Defines necessary terms;
2.  Adds language requiring from any business entity acting as a supervising travel 
producer without being specifically licensed the provision of certain notices to the 
superintendent;
3.  Provides that travel insurance must be classified and filed under an inland marine 
line of insurance subject to certain exceptions;
4.  Amends the license requirements for selling travel insurance;
5.  Assesses a premium tax on travel insurance premiums and establishes reporting 
requirements;
6.  Establishes requirements for travel protection plans;
7.  Establishes sales practices for travel insurers;
8.  Establishes requirements for travel administrators for travel insurance; and
9.  Authorizes the Superintendent of Insurance to adopt rules relating to the sale of 
travel insurance.