Section 4604 - Requirements for sale of travel insurance(a)Authority and licensure.--A travel retailer and each employee and authorized representative of the travel retailer may offer and disseminate travel insurance to customers and shall not be subject to licensure as an insurance producer under Article VI-A of the Insurance Department Act if: (1) The limited lines travel insurance producer obtains a limited lines license or is otherwise licensed as an insurance producer.(2) The limited lines travel insurance producer or travel retailer provides to each customer of travel insurance:(i) A description of the material terms or 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.(iv) The identity and contact information of the travel retailer, insurer and limited lines travel insurance producer.(b) Register of travel retailers.-- (1) At the time of licensure, the limited lines travel insurance producer shall establish and maintain a register of each travel retailer in this Commonwealth that offers travel insurance on the limited lines travel insurance producer's behalf.(2) The register shall be maintained and updated by the limited lines travel insurance producer and shall include:(i) The name, address and contact information of the travel retailer.(ii) The name, address and contact information of the officer or person who directs or controls the travel retailer's operations.(iii) The travel retailer's Federal Tax Identification Number.(3) Information in the register regarding each travel retailer under paragraphs (1) and (2) shall be maintained for a period of at least three years following the date that the information was entered into the register.(4) The limited lines travel insurance producer shall submit the register to the department upon request.(5) The limited lines travel insurance producer shall certify that the travel retailer registered complies with 18 U.S.C. § 1033 (relating to crimes by or affecting persons engaged in the business of insurance whose activities affect interstate commerce).(6) The grounds for suspension, revocation and the penalties under section 7 shall be applicable to the limited lines travel insurance producers and travel retailers.(7) The limited lines travel insurance producer shall designate one employee as a licensed individual producer as the designated licensee responsible for the compliance with the travel insurance laws and regulations applicable to the limited lines travel insurance producer and the producer's registrants.(8) The designated licensee, president, secretary, treasurer and any other officer or person who directs or controls the limited lines travel insurance producer's insurance operations shall comply with the fingerprinting requirements applicable to insurance producers in the resident state of the limited lines travel insurance producer.(9) The limited lines travel insurance producer shall pay all applicable licensing fees as specified in applicable State law.(c)List of locations.--A travel retailer shall maintain a list of the locations in this Commonwealth where it offers and disseminates travel insurance coverage information and, upon request, provide the list to the department.(d) Training.--The insurer issuing the travel insurance must either directly supervise or authorize a designated licensee to supervise the administration of a training program, including the development of the program, for employees and authorized representatives of the travel retailer which may be subject to review by the department. The training shall comply with the following: (1) The training shall be delivered to employees and authorized representatives of a travel retailer who are directly engaged in the activity of offering and disseminating travel insurance information.(2) The training may be provided in electronic form. If conducted in an electronic form, the insurer shall implement a supplemental education program regarding travel insurance that is conducted and overseen by the designated licensee.(3) Each employee and authorized representative, at a minimum, shall receive basic instruction about the types of travel insurance offered, ethical sales practices and the disclosures required under this section.(e) Written materials.-- A travel retailer offering or disseminating travel insurance shall provide to every prospective customer a brochure or other written material that has been approved by the travel insurer. The materials shall include information that (1) Provides the identity and contact information of the insurer and the limited lines travel insurance producer.(2) [Repealed by 2024 Amendment.](3) Explains that purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer.(4) Explains 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 insurance coverage, including those coverages that are already maintained by the customer.(f) Limitations.--A travel retailer's employee or authorized representative who is not licensed as an insurance producer may 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 customer's existing insurance coverage.(3) Advertise, represent or otherwise hold himself or herself out as a licensed insurer, licensed producer or insurance expert.(g) Charges.--The charges for travel insurance coverage may be billed and collected by the travel retailer. A charge to the enrolled customer for coverage that is not included in the cost associated with the purchase of travel services shall be separately itemized on the enrolled customer's bill. If the travel insurance coverage is included with the purchase of travel services, the travel retailer shall clearly and conspicuously disclose to the enrolled customer that the travel insurance coverage is included with the purchase of travel services. The travel retailer that bills and collects the charges shall not be required to maintain the funds in a segregated account provided that the travel retailer is authorized by the insurer to hold the funds in an alternative manner and remits the amounts to the supervising entity within 60 days of receipt. The funds received by a travel retailer from an enrolled customer for the sale of travel insurance shall be considered funds held in trust by the travel retailer in a fiduciary capacity for the benefit of the insurer.(h) Compensation.--A travel retailer, whose insurance-related activities and those of the employees or authorized representatives are limited to offering and disseminating travel insurance on behalf of and under the direction and license of a limited lines travel insurance producer meeting the conditions stated in this act, is authorized to conduct those activities and receive related compensation upon registration by the limited lines travel insurance producer as described in subsection (b). No travel retailer employee or authorized representative may be compensated based primarily on the number of customers of travel insurance coverage, but nothing in this act shall prohibit payment of compensation to a travel retailer or its employees or authorized representatives for activities under the limited lines travel insurance producer's license that are incidental to the overall compensation of the travel retailer or its employees or authorized representatives.(i) Authorization for sales.--A person licensed in a major line of authority as an insurance producer is authorized to sell, solicit and negotiate travel insurance. A property and casualty insurance producer is not required to become appointed by an insurer in order to sell, solicit or negotiate travel insurance.Amended by P.L. (number not assigned at time of publication) 2024 No. 28,§ 4, eff. 9/16/2024.Added by P.L. TBD 2018 No. 26, § 4, eff. 9/28/2018.