2023 Texas Statutes › Insurance Code › Title 12 - Other Coverage › Chapter 3504 - Travel Insurance › Section 3504.0006. Sales Practices; Prohibited Practices

Sec. 3504.0006.  SALES PRACTICES; PROHIBITED PRACTICES.  (a)  Offering or selling a travel insurance policy that could never result in payment of a claim for an insured under the policy is an unfair trade practice under Subtitle C, Title 5.
(b)  All documents provided to a consumer before the purchase of travel insurance, including sales materials, advertising materials, and marketing materials, must be consistent with the travel insurance policy, including forms, endorsements, policies, rate filings, and certificates of insurance.
(c)  Before the consumer buys travel insurance and subsequently in the fulfillment materials, the consumer must be provided information about any preexisting condition exclusion that is included in the travel insurance policy or certificate.  The consumer must have the opportunity to learn more about the exclusion.
(d)  The fulfillment materials and the information described in Section 4055.154(a) must be provided to a policyholder or certificate holder as soon as practicable after the purchase of a travel protection plan.  Unless the policyholder or certificate holder has started a covered trip or filed a claim under the travel insurance coverage, the policyholder or certificate holder may cancel a policy or certificate for a full refund of the travel protection plan price.  The policyholder or certificate holder must exercise the right to cancel a travel protection plan before:
(1)  the 15th day after the date of delivery of the travel protection plan's fulfillment materials by United States mail or a later date specified by the plan; or
(2)  the 10th day after the date of delivery of the travel protection plan's fulfillment materials by means other than United States mail or a later date specified by the plan.
(e)  For the purposes of this section, delivery means handing fulfillment materials to the policyholder or certificate holder or sending fulfillment materials by United States mail or electronic means to the policyholder or certificate holder.
(f)  The company shall disclose in the policy documentation and fulfillment materials if the travel insurance is primary or secondary to other applicable coverage.
(g)  If travel insurance is marketed directly to a consumer through an insurer's Internet website or by others through an aggregator site, it is not an unfair trade practice or other violation of law if:
(1)  an accurate summary or short description of coverage is provided on the Internet website; and
(2)  the consumer has access to the full provisions of the policy through electronic means.
(h)  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 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.
(i)  It is an unfair trade practice to market blanket travel insurance coverage as free.
(j)  If 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:
(1)  purchasing the coverage required by the destination jurisdiction through the travel retailer or supervising entity supplying the trip or travel package; or
(2)  agreeing to obtain and provide proof of coverage that meets the destination jurisdiction's requirements before departure.
Added by Acts 2019, 86th Leg., R.S., Ch. 1000 (H.B. 2587), Sec. 1, eff. September 1, 2019.