How is travel insurance defined in code?
Travel insurance is designed to cover the costs and reduce the risk associated with unexpected events during domestic or international travel. It usually covers the insured in two main categories: costs associated with travel-related medical expenses and trip cancellations. Many companies selling airplane tickets or travel packages online allow consumers to purchase travel insurance as an added benefit.
Travel insurance is limited to?
Travel insurance covers risks with planned travel, including, but not limited to:
1. Interruption or cancellation of the trip or event
2. Loss of baggage or personal effects
3. Damages to accommodations or rental vehicles
4. Sickness, accident, disability or death occurring during travel
Travel insurance does not include major medical plans, which provide comprehensive medical protection for travelers on trips lasting six months or longer, such as those working overseas as an ex-patriot or military personnel deployed overseas.
If I am an individual or retail agency currently carrying a Travel producer license, what do I need to do with that license now that I no longer need to be licensed?
This license can be allowed to lapse at its normal expiration date if it only has the Travel line of authority. If listed as a line of authority on a producer license with other lines of authority, it can be cancelled using our form—while maintaining the other lines(s) of authority in the normal course. See website Forms and Links page under Licensed Professionals.
Do I have an option to maintain my travel producer license in order to continue to sell, solicit, negotiate insurance to the consuming public and not be restricted to activities as outlined in current law that do not require a license?
Yes, the law still requires a Designated Responsible Licensed Producer for each wholesale producer for travel limited lines, so the individual license continues to be available. As long as you carry a producer license with the travel line of authority, you retain the authority to sell, solicit and negotiate travel insurance directly to the consuming public and are not restricted to activities of an unlicensed individual in a travel retail outlet as outlined in the current code.
If I am an individual in a retail travel agency. What activities am I allowed to participate in as it pertains to the sale of travel insurance if I do not carry a producer license?
The code outlines activities the retail agency and individual may now participate in as it relates to travel insurance sales, if unlicensed, per Idaho Code §41-1092(4)(a-c).
Per (4) A travel retailer’s employees or authorized representatives who are not licensed as insurance producers may not:
(a) evaluate or interpret the technical terms, benefits and conditions of the offered travel insurance coverage;
(b) evaluate or provide advice concerning a prospective purchaser’s existing insurance coverage; or
(c) hold him/herself or itself out as a licensed insurer, licensed producer or insurance expert.
Additionally, they can include a description of coverage and price but cannot answer technical questions about terms and conditions of the insurance offered.
How does the Department of Insurance track who is authorized as a retail outlet or individual or representative authorized under the direction of a wholesale travel producer license?
The Wholesale limited line travel producer must submit a list of all registered retail outlets and the authorized individuals and representatives acting under their authority at time of application and every year on March 1st on a form prescribed by the Director. This registration is necessary for receipt of related compensation by the retail operation. This information can be submitted through an online portal on the limited lines page.
Does the authorized individual or representative require training in order to offer travel insurance?
Yes, the retail outlet and its authorized representatives must be trained in, at a minimum:
• instructions on types of insurance offered
• ethical sales practices
• required disclosures to prospective customers
• must explain that the travel insurance is not required to purchase any other product or service of the travel retailer
Additionally, the retailer and its authorized representatives can:
• offer brochures or other written materials that provide identity and contact information for insurer and licensed limited lines travel producer
Where can I find information about limited lines other than travel?
We have a Limited Lines Manual on our website, www.doi.idaho.gov, under Licensed Professionals, License Types, Limited Lines.
If your question is not answered above, please submit your question directly to the DOI.