The Property and Casualty Insurance (C) Committee adopted the Travel Insurance Model Act (NAIC Travel Model Act), which is intended to provide a uniform, comprehensive framework for regulating the marketing and sale of insurance products related to travel protection. It is expected that the NAIC will adopt the NAIC Travel Model Act during the meeting of the Executive/Plenary Committee at the NAIC’s Fall 2018 National Meeting in November 2018.
The NAIC Travel Model Act provides a comprehensive framework for regulating travel insurance and other travel-related products, prescribing rules related to, among other things, the licensing of limited lines travel insurance producers, required disclosures to consumers in connection with the sale of travel insurance, premium taxes and marketing practices. The NAIC Travel Model Act allows travel protection plans that include insurance and non-insurance products to be bundled and offered to consumers for one price if 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. The NAIC Travel Model Act makes it an unfair trade practice to market blanket travel insurance coverage as free. The NAIC Travel Model Act also includes a prohibition against requiring consumers to opt out of the purchase of travel insurance (such as by unchecking a box) when booking travel plans. The Travel Insurance (C) Working Group used the NCOIL Travel Model Act as the starting point for developing the NAIC Travel Model Act. At least 40 states have adopted some form of the NCOIL Travel Model Act, so it is unclear how widely the NAIC Travel Model Act will be adopted by the states.