2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › LICENSES (§§ 10-2-101 — 10-2-1101) › Article 2 - LICENSES (§§ 10-2-101 — 10-2-1101) › Part 4 - LICENSING AND APPOINTMENT OF INSURANCE PRODUCERS (§§ 10-2-401 — 10-2-418) › Section 10-2-414.5 - [Effective 8/7/2024] Travel insurance - limited lines license - travel insurance producers - definitions - rules

(1)
As used in this section:
(a)
"Limited lines travel insurance producer" means:
(I)
A licensed insurance producer, including a limited lines producer, who is designated by an insurer as the travel insurance supervising entity; or
(II)
A travel administrator, as defined in section 10-4-1903 (11).
(b)
"Offer and disseminate" means to provide general information about travel insurance, including a description of the coverage and price, as well as processing the application, collecting premiums, and performing other nonlicensable activities permitted by the state.
(c)
(I)
"Travel insurance" means insurance coverage for personal risks incident to planned travel, including:
(A)
Interruption or cancellation of a trip or event;
(B)
Loss of baggage or personal effects;
(C)
Damages to accommodations or rental vehicles;
(D)
Sickness, accident, disability, or death occurring during travel;
(E)
Emergency evacuation;
(F)
Repatriation of remains; or
(G)
Any other personal risks for which a contractual obligation exists to indemnify or pay a specified amount to the traveler upon determinable contingencies related to travel, as approved by the commissioner.
(II)
"Travel insurance" does not include major medical plans that provide comprehensive medical protection for travelers with trips lasting longer than six months, including a person working overseas as an expatriate, or any other product that requires a specific insurance producer license.
(d)
"Travel retailer" means a business entity that makes, arranges, or offers travel services 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.
(2)
(a)
(I)
The commissioner may issue a limited lines travel insurance producer license to an individual or business entity that has filed an application with the commissioner in a form and manner prescribed by the commissioner and has paid all applicable licensing fees, as set forth in the applicable state law.
(II)
A limited lines travel insurance producer must be licensed in order to sell, solicit, or negotiate travel insurance through a licensed insurer.
(III)
A person shall not act as a limited lines travel insurance producer or travel retailer unless the person is properly licensed or registered as a limited lines travel insurance producer or travel retailer, respectively.
(b)
A travel retailer may offer and disseminate travel insurance as a service to its customers on behalf of and under the direction of a business entity that holds a limited lines travel insurance producer license. In doing so, the travel retailer or limited lines travel insurance producer shall provide to prospective purchasers of travel insurance:
(I)
A description of the material terms or the actual material terms of the insurance coverage;
(II)
A description of the process for filing a claim;
(III)
A description of the review or cancellation process for the travel insurance policy; and
(IV)
The identity and contact information of the insurer and limited lines producer.
(c)
(I)
At the time of licensure, the limited lines travel insurance producer shall establish and maintain a register of each travel retailer that offers travel insurance on the limited lines travel insurance producer's behalf on a form prescribed by the commissioner. The limited lines travel insurance producer must maintain and update the register annually and include:
(A)
The name, address, and contact information of each travel retailer;
(B)
The name, address, and contact information of an officer or person who directs or controls the travel retailer's operations; and
(C)
The travel retailer's federal tax identification number.
(II)
The limited lines travel insurance producer shall submit the register to the commissioner upon request. The limited lines travel insurance producer shall also certify that the travel retailer registered is not in violation of
18 U.S.C. sec. 1033
.
(III)
The grounds for suspension and revocation and the penalties applicable to resident insurance producers under section 10-2-801 are applicable to limited lines travel insurance producers and travel retailers.
(d)
The limited lines travel insurance producer must designate one of its employees who is a licensed individual producer as the person responsible for the limited lines travel insurance producer's compliance with the travel insurance laws and rules of the state.
(e)
The limited lines travel insurance producer shall require 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 by the commissioner. The training material must include, at minimum, instructions on the types of insurance offered, ethical sales practices, and required disclosures to prospective customers.
(3)
A limited lines travel insurance producer and those registered under its license are exempt from the prelicensure educational requirements in section
10-2-201
, continuing education requirements in section
10-2-301
, and examination and continuing education requirements in section
10-2-403
.
(4)
Any travel retailer offering or disseminating travel insurance shall make brochures or other written materials available to prospective purchasers that have been approved by the travel insurer. The materials must include information that, at a minimum:
(a)
Provide the identity and contact information of the insurer and the limited lines travel insurance producer;
(b)
Explain that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer; and
(c)
Explain 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.
(5)
A travel retailer's employee or authorized representative who is not licensed as an insurance producer may not:
(a)
Evaluate or interpret the technical terms, benefits, or conditions of the offered travel insurance coverage;
(b)
Evaluate or provide advice concerning a prospective purchaser's existing insurance coverage; or
(c)
Hold himself or herself out as a licensed insurer, licensed producer, or insurance expert.
(6)
Notwithstanding any other provision of law, a travel retailer whose insurance-related activities, and those of its employees and authorized representatives, are limited to offering and disseminating travel insurance on behalf of and under the direction of a limited lines travel insurance producer meeting the conditions stated in this section is authorized to receive related compensation for the services upon registration by the limited lines travel insurance producer.
(7)
Travel insurance may be provided under an individual, group, or blanket policy.
(8)
The limited lines travel insurance producer is responsible for the acts of the travel retailer and shall use reasonable means to ensure that the travel retailer complies with this section.
(9)
The commissioner may take disciplinary action against a limited lines travel insurance producer pursuant to section
10-2-801
.
(10)
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 be appointed by an insurer in order to sell, solicit, or negotiate travel insurance.
(11)
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, if those standards also meet the state's underwriting standards for inland marine.
(12)
The commissioner may promulgate rules necessary to implement this section.
Amended by 2024 Ch. 128,§ 1, eff. 8/7/2024.
Added by 2014 Ch. 202, § 2, eff. 8/6/2014.
L. 2014: Entire section added, (HB 14-1185), ch. 202, p. 734, § 2, effective August 6.
2024 Ch. 128, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
This section is set out more than once due to postponed, multiple, or conflicting amendments.