2023 Tennessee Code › Title 56 - INSURANCE (§§ 56-1-101 — 56-61-125) › Chapter 6 - AGENTS, SOLICITORS AND ADMINISTRATORS (§§ 56-6-101 — 56-6-1407) › Part 14 - TRAVEL INSURANCE PRODUCER LIMITED LICENSE ACT (§§ 56-6-1401 — 56-6-1407) › Section 56-6-1403 - Limited lines travel insurance producer license - Travel insurance supervising entity license - Brochures for prospective purchasers - Prohibited acts of nonlicensed employees or representatives

(a)
Notwithstanding any other law to the contrary:
(1)
Pursuant to the Tennessee Insurance Producer Licensing Act of 2002, compiled in part 1 of this chapter, the commissioner may issue to an individual or business entity that has filed with the commissioner an application in a form and manner prescribed by the commissioner, a limited lines travel insurance producer license, which authorizes the limited lines travel insurance producer to sell, solicit, or negotiate travel insurance through a licensed insurer;
(2)
Pursuant to this chapter, the commissioner may issue a travel insurance supervising entity license to an individual or business entity that has filed with the commissioner an application in a form and manner prescribed by the commissioner, which authorizes the travel insurance supervising entity to sell, solicit, or negotiate travel insurance through a travel retailer only if the following conditions are met:
(A)
The travel insurance supervising entity or travel retailer provides to 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 travel insurance producer;
(B)
At the time of licensure, the travel insurance supervising entity establishes and maintains a register, in a form prescribed by the commissioner, of each travel retailer that offers travel insurance on the travel insurance supervising entity's behalf. The register shall be maintained and updated annually by the travel insurance supervising entity and shall 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 tax identification number. The travel insurance supervising entity shall submit the register to the department of commerce and insurance upon reasonable request. The travel insurance supervising entity shall also certify that the travel retailer register complies with
18 U.S.C. § 1033
. The grounds for the suspension, revocation, and penalties applicable to resident insurance producers under §
56-6-1407
are applicable to the limited lines travel insurance producers, travel insurance supervising entity, and travel retailers;
(C)
The travel insurance supervising entity has designated one (1) of its employees who is a licensed individual producer as the designated responsible producer (DRP) responsible for the travel insurance supervising entity's compliance with the travel insurance laws and rules of this state;
(D)
The commissioner finds that the DRP, president, secretary, treasurer, and any other officer or person who directs or controls the travel insurance supervising entity's insurance operations have not committed any act that is a ground for denial, suspension, or revocation set forth in §
56-6-112
;
(E)
The travel insurance supervising entity has paid all applicable insurance producer licensing fees as set forth in §
56-6-121
; and
(F)
The travel insurance supervising entity requires 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 shall, at a minimum, contain instructions on the types of insurance offered, ethical sales practices, and required disclosures to prospective customers;
(3)
The initial license issued to a travel insurance supervising entity pursuant to subdivision (a)(2) shall be valid for a period of twelve (12) months and expire annually on March 1; and
(4)
Travel insurance supervising entities, and those registered under their licenses, are exempt from examination, prelicensing, and continuing education requirements under this part.
(b)
Any travel retailer offering or disseminating travel insurance shall make available to prospective purchasers brochures or other written materials that have been approved by the travel insurer. The materials must include information that, at a minimum:
(1)
Provide the identity and contact information of the insurer and the travel insurance supervising entity;
(2)
Explain that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer; and
(3)
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.
(c)
A travel retailer's employees or authorized representatives who are not licensed as insurance producers shall not:
(1)
Evaluate or interpret the technical terms, benefits, and conditions of the offered travel insurance coverage;
(2)
Evaluate or provide advice concerning a prospective purchaser's existing insurance coverage; or
(3)
Hold themselves out as licensed insurers, licensed producers, or insurance experts.
Amended by 2022 Tenn. Acts, ch. 703, s 5, eff. 7/1/2022.
Amended by 2022 Tenn. Acts, ch. 703, s 4, eff. 7/1/2022.
Added by 2015 Tenn. Acts, ch. 460, s 3, eff. 1/1/2016.