1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/26/2012 03:34pm
A bill for an act
relating to insurance; regulating the offer and dissemination of travel insurance;
amending Minnesota Statutes 2010, sections 60K.36, subdivision 2; 60K.38,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 60K.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2010, section 60K.36, subdivision 2, is amended to read:
A resident individual applying for a limited
lines credit insurance, title insurance, travel deleted text begin baggagedeleted text end insurance, or bail bonds license is
not required to take a written examination.
Minnesota Statutes 2010, section 60K.38, subdivision 1, is amended to read:
(a) Unless denied a license under section 60K.43, a person
who has met the requirements of sections 60K.36 and 60K.37 must be issued an insurance
producer license. An insurance producer may receive qualification for a license in one or
more of the lines of authority in paragraphs (b) and (c).
(b) An individual insurance producer may receive qualification for a license in
one or more of the following major lines:
(1) life insurance: coverage on human lives including benefits of endowment and
annuities, and may include benefits in the event of death or dismemberment by accident
and benefits for disability income;
(2) accident and health or sickness insurance: coverage for sickness, bodily injury,
or accidental death, and may include benefits for disability income;
(3) property insurance: coverage for the direct or consequential loss or damage to
property of every kind;
(4) casualty insurance: coverage against legal liability, including that for death,
injury, or disability, or damage to real or personal property;
(5) variable life and variable annuity products insurance: coverage provided under
variable life insurance contracts and variable annuities; and
(6) personal lines: property and casualty insurance coverage sold to individuals and
families for primarily noncommercial purposes.
(c) An individual insurance producer may receive qualification for a license in
one or more of the following limited lines:
(1) limited line credit insurance;
(2) farm property and liability insurance;
(3) title insurance;
(4) travel deleted text begin baggagedeleted text end insurance; and
(5) bail bonds.
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(a) As used in this section, the terms in paragraphs (b)
to (d) have the meanings given.
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(b) "Travel insurance" means insurance coverage for personal risks incident to
planned travel, including, but not limited to:
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(1) interruption or cancellation of trip or event;
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(2) loss of baggage or personal effects;
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(3) damages to accommodations or rental vehicles; or
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(4) sickness, accident, disability, or death occurring during travel.
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Travel insurance does not include major medical plans, which provide
comprehensive medical protection for travelers with trips lasting six months or longer,
including those working overseas as an ex-patriot or military personnel being deployed.
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(c) "Travel insurance producer" means an insurer designee, such as a managing
general underwriter, managing general agent, or licensed limited lines producer of travel
insurance.
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(d) "Travel retailer" means a business entity that offers and disseminates travel
insurance on behalf of and under the direction of a travel insurance producer.
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A travel retailer may offer and disseminate travel
insurance on behalf of and under a travel insurance producer business entity license only if
the travel insurance producer holds a business entity license, and:
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(1) the licensed business entity is clearly identified as the licensed producer on
marketing materials and fulfillment packages distributed by travel retailers to customers,
identification shall include the entity's name and contact information;
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(2) the licensed business entity keeps a register of each travel retailer that offers
travel insurance on the licensed business entity's behalf. The register must include the
name and contact information of the travel retailer and an officer or person who directs
or controls the travel retailer's operations, and the travel retailer's federal Employer
Identification Number. The licensed business entity shall also certify that the travel retailer
registered complies with United States Code, title 18, section 1033. The licensed business
entity shall submit the register within 30 days upon request by the commissioner;
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(3) the licensed business entity has designated one of its employees as a licensed
individual producer, a "designated responsible producer" or "DRP," responsible for the
business entity's compliance with Minnesota insurance laws and rules;
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(4) the DRP, president, secretary, treasurer, and any other officer or person who
directs or controls the licensed business entity's insurance operations comply with the
fingerprinting requirements applicable to insurance producers in the resident state of
the business entity;
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(5) the licensed business entity has paid all applicable insurance producer licensing
fees as set forth in Minnesota state law; and
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(6) the licensed business entity requires each employee of the travel retailer whose
duties include offering and disseminating travel insurance to receive a program of
instruction or training, which may be subject to review by the commissioner.
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A
travel retailer, whose activities, and those of its employees, are limited to offering and
disseminating travel insurance on behalf of and under the direction of a licensed business
entity meeting the conditions stated in this section, is authorized to do so and receive
related compensation, upon registration by the licensed business entity. For purposes of
this section, "offering and disseminating" means providing general information, including
a description of the coverage and price, as well as processing the application, collecting
premiums, and performing other nonlicensable activities permitted by the state.
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As the insurer designee, the travel insurance producer is
responsible for the acts of the travel retailer.
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Sections 1 to 3 are effective July 1, 2012.
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