40 Pa. Stat. § 4602

Current through Pa Acts 2024-53, 2024-56 through 2024-111

Section 4602 - Definitions

The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Aggregator site." A publicly accessible Internet website that provides access to information regarding insurance products from more than one insurer, including product and insurer information, for use in comparison shopping.

"Application." As defined in section 601-A of the Insurance Department Act.

"Blanket travel insurance." A policy of travel insurance issued to an eligible group providing coverage for specific classes of persons defined in the policy with coverage provided to all members of the eligible group without a separate charge to individual members of the eligible group.

"Business entity." A person that is not an individual.

"Cancellation fee waiver." A contractual agreement between a supplier of travel services and a customer to waive some or all of the nonrefundable cancellation fee provisions of the supplier's underlying travel contract with or without regard to the reason for the cancellation or form of reimbursement. A cancellation fee waiver is not insurance.

"Commissioner." The Insurance Commissioner of the Commonwealth.

"Customer." A person who purchases travel services, travel protection plans or travel insurance.

"Department." The Insurance Department of the Commonwealth.

"Designated licensee." As defined in section 601-A of the Insurance Department Act.

"Eligible group." Two or more persons who are engaged in a common enterprise or have an economic, educational or social affinity or relationship, including any of the following:

(1) An entity engaged in the business of providing travel or travel services, including tour operators, lodging providers, vacation property owners, hotels and resorts, travel clubs, travel agencies, property managers, cultural exchange programs and common carriers or the operator, owner or lessor of a means of transportation of passengers, including airlines, cruise lines, railroads, steamship companies and public bus carriers, wherein with regard to a particular trip or type of travel or travelers, all members or customers of the group must have a common exposure to risk attendant to the travel.

(2) A college, school or other institution of learning, covering students, teachers, employees or volunteers.

(3) An employer covering a group of employees, volunteers, contractors, board of directors, dependents or guests.

(4) A sports team, camp or sponsor of a sports team or camp covering participants, members, campers, employees, officials, supervisors or volunteers.

(5) A religious, charitable, recreational, educational or civic organization or branch of an organization covering a group of members, participants or volunteers.

(6) A financial institution or financial institution vendor or parent holding company, trustee or agent of or designated by one or more financial institutions or financial institution vendors, including account holders, credit card holders, debtors, guarantors or purchasers.

(7) An incorporated or unincorporated association, including labor unions, having a common interest, constitution and bylaws, and organized and maintained in good faith for purposes other than obtaining insurance for members or participants of the association covering members.

(8) A trust or the trustees of a fund established, created or maintained for the benefit of and covering members, employees or customers, subject to the commissioner's permitting the use of a trust of one or more associations meeting the requirements of paragraph (7).

(9) An entertainment production company covering a group of participants, volunteers, audience members, contestants or workers.

(10) A volunteer fire department, ambulance, rescue, police, court, first aid, civil defense or other volunteer group.

(11) A preschool, day-care institution for children or adults and senior citizen club.

(12) An automobile or truck rental or leasing company covering a group of individuals who may become renters, lessees or passengers defined by their travel status on the rented or leased vehicles. The common carrier, operator, owner or lessor of a means of transportation, or the automobile or truck rental or leasing company, is the policyholder under a policy to which this section applies.

(13) Any other group where, upon prior request to the commissioner, the commissioner has determined, in the commissioner's sole discretion, that the members are engaged in a common enterprise, or have an economic, educational or social affinity or relationship, and that issuance of the policy would not be contrary to the public interest.

"Enrolled customer." A customer who elects coverage under a travel insurance policy.

"Fulfillment materials." Documentation sent to the purchaser of a travel protection plan confirming the purchase and providing the travel protection plan's coverage and assistance details.

"Group travel insurance." Travel insurance issued to an eligible group.

"Insurance Department Act." The act of May 17, 1921 ( P.L. 789, No.285), known as The Insurance Department Act of 1921.

"Insurer." As defined in section 601-A of the Insurance Department Act.

"Limited lines travel insurance producer." A person licensed to sell, solicit or negotiate a contract of travel insurance as one of the following:

(1) licensed managing general agent or third-party administrator;

(2) licensed insurance producer, including a limited lines producer; or

(3) travel administrator licensed as a limited lines insurance producer.

"Location." A physical location in this Commonwealth or an Internet website, call center site or similar location provided to residents of this Commonwealth.

"Negotiate." To confer directly with or to offer advice directly to a customer or prospective customer of a particular contract of insurance concerning the substantive benefits, terms or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for customers.

"Offer and disseminate." To provide general information, including a description of the coverage and price, as well as processing an application for travel insurance, collecting premiums and performing other activities for which no insurance license is required.

"Sell." To exchange a contract of insurance by any means for money or its equivalent on behalf of an insurance entity.

"Solicit." To attempt to sell insurance or ask or urge a person to apply for a particular kind of insurance from a particular insurance entity.

"Travel administrator." A person who directly or indirectly underwrites, collects charges, collateral or premiums from, or adjusts or settles claims on residents of this Commonwealth, in connection with travel insurance, except that a person shall not be considered a travel administrator if that person's only actions that would otherwise cause the person to be considered a travel administrator are among the following:

(1) A person working for a travel administrator to the extent that the person's activities are subject to the supervision and control of the travel administrator.

(2) An insurance producer selling insurance or engaged in administrative and claims-related activities within the scope of the producer's license.

(3) A travel retailer offering and disseminating travel insurance and registered under the license of a limited lines travel insurance producer in accordance with this act.

(4) An individual adjusting or settling claims in the normal course of that individual's practice or employment as an attorney-at-law and who does not collect charges or premiums in connection with insurance coverage.

(5) A business entity that is affiliated with a licensed insurer while acting as a travel administrator for the direct and assumed insurance business of an affiliated insurer.

"Travel assistance services." Noninsurance services for which the consumer is not indemnified based on a fortuitous event and where providing the service does not result in transfer or shifting of risk that would constitute the business of insurance. The term includes security advisories, destination information, vaccination and immunization information services, travel reservation services, entertainment, activity and event planning, translation assistance, emergency messaging, international legal and medical referrals, medical case monitoring, coordination of transportation arrangements, emergency cash transfer assistance, medical prescription replacement assistance, passport and travel document replacement assistance, lost luggage assistance, concierge services and any other service that is furnished in connection with planned travel. Travel assistance services are not insurance and not related to insurance.

"Travel insurance." Insurance providing coverage for personal risks incident to planned travel. The following apply:

(1) The term includes:

(i) Interruption or cancellation of trip or event.

(ii) Loss of baggage or personal effects.

(iii) Damages to accommodations or rental vehicles.

(iv) Sickness, accident, disability or death occurring during travel.

(v) Emergency evacuation.

(vi) Repatriation of remains.

(vii) Any other contractual obligations to indemnify or pay a specified amount to the traveler upon determinable contingencies related to travel as approved by the commissioner.

(2) The term does not include:

(i) A service contract as defined in section 358(b) of the act of May 17, 1921 (P.L.682, No.284), known as The Insurance Company Law of 1921.

(ii) A major medical plan that provides comprehensive medical protection to a traveler with a trip lasting six months or longer, including a person working or residing overseas as an expatriate or deployed military personnel.

(iii) Any other product that requires a specific insurance producer license.

"Travel insurance transaction." The sale of travel insurance to a customer.

"Travel retailer." A business entity that makes, arranges or offers travel services and that 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 or under its own license.

"Travel protection plans." Plans that provide one or more of the following:

(1) Travel insurance.

(2) Travel assistance services.

(3) Cancellation fee waivers.

40 P.S. § 4602

Amended by P.L. (number not assigned at time of publication) 2024 No. 28,§ 2, eff. 9/16/2024.

Added by P.L. TBD 2018 No. 26, § 2, eff. 9/28/2018.