Amends TCA Title 56.

This bill revises and adds provisions regarding travel insurance, including adding requirements for travel protection plans, all as discussed below. Travel Insurance Producer Limited License Act – Applicability Under present law, the Travel Insurance Producer Limited License Act provides for the issuing of limited lines travel insurance producer licenses and travel insurance supervising entity licenses. The Act governs the business of travel insurance, which, under present law includes insurance coverage for personal risks incident to planned travel, including, but not limited to: interruption or cancellation of a trip or event; loss of baggage or personal effects; damages to accommodations or rental vehicles; or sickness, accident, disability, or death occurring during travel. This bill adds as specific inclusions under the Act coverage for emergency evacuation, reparation of remains, and another contractual obligation to indemnify or pay a specified amount to a traveler upon determinable contingencies related to travel, as approved by the commissioner of commerce and insurance. Gross Premium Taxes Generally under present law, insurance companies must pay a tax of 2.5 percent on gross premiums paid by or for policyholders residing in this state or on property located in this state. Domestic and foreign life insurance companies pay a tax equal to 1.75 percent of gross premiums received from citizens of and residents of this state. This bill adds under gross premium tax provisions that a travel insurer must pay the tax on travel insurance premiums paid by the following: (A) An individual primary policyholder who is a resident of this state; (B) A primary certificate holder who is a resident of this state and elects coverage under a group travel insurance policy; or (C) A blanket travel insurance policyholder that is a resident, or has its principal place of business or the principal place of business of an affiliate or subsidiary that has purchased blanket travel insurance, in this state for eligible blanket group members, subject to apportionment rules that: apply to the insurer across multiple taxing jurisdictions; or permit the insurer to allocate premium on an apportioned basis in those jurisdictions. This bill requires a travel insurer to: document the state of residence, or principal place of business, of the policyholder or certificate holder; and report as premium only the amount allocable to travel insurance, not including amounts received for travel assistance services or cancellation fee waivers. Travel Protection Plans This bill adds new provisions governing travel protection plans, which this bill defines as plans that cover at least one of the following: travel insurance, travel assistance services, or cancellation fee waivers. These provisions will apply to travel insurance that covers a resident of this state and is sold, solicited, negotiated, or offered in this state; and policies and certificates that are delivered or issued for delivery in this state. These provisions will not apply to cancellation fee waivers or travel assistance services, except as expressly provided in these new provisions. This bill states that cancellation fee waivers and travel assistance services governed under this bill are not insurance and are exempt from the insurance laws of this state. The provisions established by this bill for travel protection plans include the following: (1) Travel protection plans may be offered for one price for the combined features that the travel protection plan offers in this state if certain conditions are met at or prior to the time of purchase; (2) Documents provided to consumers prior to the purchase of travel insurance must be consistent with the travel insurance policy itself; (3) For travel insurance policies or certificates that contain pre-existing condition exclusions, information and an opportunity to learn more about the pre-existing condition exclusions must be provided; (4) Unless the insured has started a covered trip or filed a claim under the travel insurance coverage, a policyholder or certificate holder may cancel a policy or certificate for a full refund of the travel protection plan price from the date of purchase of a travel protection plan until certain times, as specified in this bill; (5) If travel insurance is marketed directly to a consumer through an insurer's website or by another through an aggregator site, then it is not an unfair trade practice or other violation of law to provide an accurate summary or short description of coverage on the web page, if the consumer has access to the full provisions of the policy through electronic means. Also, if a consumer's destination jurisdiction requires insurance coverage, then it is not an unfair trade practice to require a consumer to choose between the certain options as a condition of purchasing a trip or travel package, as specified in this bill; (6) A person offering, soliciting, or negotiating travel insurance or travel protection plans on an individual or group basis must not do so by using a negative option or opt-out; and (7) A person must not act as or represent to be a travel administrator for travel insurance in this state unless that person: (A) Is a licensed property and casualty insurance producer or accident and health insurance producer in this state for activities permitted under that producer license; (B) Holds a valid managing general agent (MGA) license in this state; or (C) Holds a valid third-party administrator (TPA) license in this state. Unfair Trade Practices Under present law, the Tennessee Unfair Trade Practices and Unfair Claims Settlement Act regulates trade and claims settlement practices in the business of insurance. The Act sets out certain practices that are considered to be unfair methods of competition and unfair or deceptive acts or practices and establishes remedies for violations. This bill adds the following practices as prohibited practices under the Act: (1) Offering or selling a travel insurance policy that could never result in payment of claims for an insured under the policy; and (2) Marketing blanket insurance coverage as free. Miscellaneous This bill provides that the grounds for suspension, revocation, and penalties applicable to resident insurance producers under present law are applicable to the limited lines travel insurance producers, travel insurance supervising entities, and travel retailers. Under present law, a travel retailer offering or disseminating travel insurance must make available to prospective purchasers brochures or other written materials that meet certain requirements. This bill requires that such materials be approved by the travel insurer prior to dissemination.