Bill
HF 3766
Establishes a Minnesota licensing and registration framework for limited lines travel insurance, travel retailers, and travel protection plans with required disclosures and complia
Purpose and overall intent
- Establish a comprehensive framework for the licensing, registration, sale, and regulation of travel insurance and related travel protection products in Minnesota.
- Create a distinct regulatory pathway for “limited lines travel insurance producers,” travel retailers, and travel protection plans that combine travel insurance, travel assistance services, and cancellation fee waivers.
- Clarify how travel insurance, travel assistance services, and cancellation fee waivers interact with existing insurance laws, and designate appropriate filing, training, and conduct requirements to protect consumers.
Key provisions and changes
1) Definitions and scope (Sec. 1, 60K.383; Sec. 2-3)
- Introduces and defines:
- Limited lines travel insurance producer: includes licensed managing general agents, third-party administrators, licensed limited lines producers, or travel administrators.
- Travel retailer: a business that offers and disseminates planned travel and may offer/disseminate travel insurance on behalf of a limited lines producer.
- Travel protection plan: a plan that includes travel insurance, travel assistance services, or cancellation fee waivers.
- Travel administrator, travel assistance services, and related terms.
- Clarifies what constitutes travel insurance (e.g., trip interruption/cancellation, baggage loss, emergency evacuation, repatriation, etc.) and what is excluded (major medical plans with trips over six months, or products requiring a dedicated producer license).
2) Licensure, registration, and duties of travel retailers and producers (Sec. 1, 60K.383; Sec. 2-3)
- Creates a process for issuing limited lines travel insurance producer licenses to individuals or entities; a travel retailer may offer travel insurance only if the producer license is held and certain conditions are met.
- Requires that travel retailers:
- Identify the licensed producer on marketing materials.
- Provide purchasers with: (i) material terms of coverage, (ii) claim filing process, (iii) process to review/cancel, and (iv) insurer and producer contact information.
- Maintain a register of travel retailers offering insurance on behalf of the licensed producer, including the retailer’s contact details and the responsible officer; must certify compliance with 18 U.S.C. § 1033 and provide the register within 30 days of request.
- Ensure training for employees/representatives who sell or disseminate travel insurance; training materials must cover insurance types, ethical sales practices, and required disclosures.
- Insurer designee responsibility for travel retailer acts and ensuring compliance; DRP (designated responsible producer) must be a licensed individual producer.
3) Consumer information and materials (Sec. 1, 60K.383; Sec. 2-3)
- Travel retailers must provide brochures/materials approved by the insurer, including:
- Identity/contact info for insurer and producer.
- Disclosure that purchase is not required to buy other products/services.
- Limitation that unlicensed retailers can only provide general information, not act as licensed experts or evaluate coverage.
- Prohibits unlicensed personnel from interpreting policy terms or advising on existing coverage.
4) Offer, dissemination, and compensation (Sec. 1, 60K.383; Sec. 3)
- Defines “offer and disseminate” to encompass general information, application processing, and premium collection.
- Clarifies compensation arrangements for travel retailers operating under a licensed producer’s umbrella.
5) Travel protection plans and sale practices (Sec. 4-5)
- Sets standards for travel protection plans sold at one price, ensuring clear disclosures about included components (insurance, travel assistance, cancellation fee waivers) and availability of information about pricing for individual components.
- Requires fulfillment materials to describe each component and provide contact information for service providers.
- Establishes advertising/marketing rules to prevent unfair practices and ensure consistency with policy terms.
- Prohibits negative option marketing (no automatic opt-out by default).
- Allows limits on free blanket travel insurance advertising and addresses destination jurisdiction insurance requirements.
6) Travel administrators and policy framework (Sec. 6-7)
- Prohibits certain entities from acting as travel administrators without appropriate Minnesota licenses (P&C producer, MGAs, or TPA licenses).
- Sets insurer accountability for the acts of travel administrators and record-keeping obligations.
- Classifies travel insurance as inland marine (with flexibility to file under inland marine or accident/health lines, when appropriate) and allows policies to be issued as individual, group, or blanket.
- Permits underwriting standards aligned with travel protection plans, as long as they meet inland marine underwriting standards.
7) Effective date (Sec. 8)
- Sections 1–7 become effective 90 days after final enactment.
Who is affected
Procedural and timeline notes
Impact overview
Compiled from official sources — confirm details with the bill’s official record.
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