Florida is the most recent of states to adopt a version of the National Association of Insurance Commissioners (“NAIC”) Travel Insurance Model Act, which sets forth comprehensive regulatory requirements for Travel Insurance (as defined in the Act). Florida Governor Ron DeSantis approved Senate Bill 1606 on June 20, 2020. The Florida legislation will become effective on July 1, 2020, unless otherwise expressly provided.

The NAIC Travel Insurance Model Act and Florida legislation contain regulatory requirements related to numerous aspects of the travel protection industry, including, among others:

  • Form and rate filing;
  • Sales and marketing;
  • Licensing;
  • The sale of Travel Protection Plans that incorporate insurance and non-insurance products and services such as cancellation waivers or assistance services; and
  • Payment of premium tax.

This Act provides requirements not only for those in the travel insurance industry, but all travel industry participants, such as travel agencies, tour operators and cruise lines, that offer travel insurance along with their travel services.

Industry participants with products falling within the applicable definition of Travel Insurance should review their business practices and those of entities acting on their behalf or distributing their products to ensure that they comply with applicable regulatory requirements. It is important to note that the Florida bill contains state-specific differences from the NAIC Travel Insurance Model Act. As a result, travel industry participants should consult counsel to obtain advice regarding state-specific variations.