Full Text of SB1588 102nd General Assembly
SB1588sam001 102ND GENERAL ASSEMBLY | Sen. Laura Fine Filed: 4/8/2021
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| 1 | | AMENDMENT TO SENATE BILL 1588
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1588 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Insurance Code is amended by | 5 | | changing Section 500-10 and by adding Article XLVI as follows:
| 6 | | (215 ILCS 5/500-10)
| 7 | | (Section scheduled to be repealed on January 1, 2027)
| 8 | | Sec. 500-10. Definitions. In addition to the definitions | 9 | | in Section 2 of
the
Code, the following
definitions apply to | 10 | | this Article:
| 11 | | "Business entity" means a corporation, association, | 12 | | partnership, limited
liability
company, limited liability | 13 | | partnership, or other legal entity.
| 14 | | "Car rental limited line licensee" means a person | 15 | | authorized under the
provisions of
Section 500-105 to sell | 16 | | certain coverages relating to the rental of vehicles.
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| 1 | | "Home state" means the District of Columbia and any state | 2 | | or territory of the
United
States in which an insurance | 3 | | producer maintains his or her principal place of
residence or
| 4 | | principal place of business and is licensed to act as an | 5 | | insurance producer.
| 6 | | "Insurance" means any of the lines of authority in Section | 7 | | 500-35, any health
care plan
under the Health Maintenance | 8 | | Organization Act, or any limited health care plan
under the
| 9 | | Limited Health Service Organization Act.
| 10 | | "Insurance producer" means a person required to be | 11 | | licensed under the laws of
this State
to sell, solicit, or | 12 | | negotiate insurance.
| 13 | | "Insurer" means a company as defined in subsection (e) of | 14 | | Section 2 of this
Code, a
health maintenance organization as | 15 | | defined in the Health Maintenance
Organization Act, or a
| 16 | | limited health service organization as defined in the Limited | 17 | | Health
Service Organization Act.
| 18 | | "License" means a document issued by the Director | 19 | | authorizing an individual
to act as an
insurance producer for | 20 | | the lines of authority specified in the document or
| 21 | | authorizing a business
entity to act as an insurance producer. | 22 | | The license itself does not create any
authority, actual,
| 23 | | apparent, or inherent, in the holder to represent or commit
an | 24 | | insurance carrier.
| 25 | | "Limited lines insurance" means those lines of insurance | 26 | | defined in Section
500-100 or
any other line of insurance that |
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| 1 | | the Director may deem it necessary to
recognize for the | 2 | | purposes
of complying with subsection (e) of Section 500-40.
| 3 | | "Limited lines producer" means a person authorized by the | 4 | | Director to sell,
solicit, or
negotiate limited lines | 5 | | insurance.
| 6 | | "Negotiate" means the act of conferring directly with or | 7 | | offering advice
directly to a
purchaser or prospective | 8 | | purchaser of a particular contract of insurance
concerning any
| 9 | | of the substantive benefits, terms, or conditions of the | 10 | | contract, provided
that the person
engaged in that act either | 11 | | sells insurance or obtains insurance from
insurers for | 12 | | purchasers.
| 13 | | "Person" means an individual or a business entity.
| 14 | | "Rental agreement" means a written agreement setting forth | 15 | | the terms and
conditions
governing the use of a vehicle | 16 | | provided by a rental company for
rental or lease.
| 17 | | "Rental company" means a person, or a franchisee of the | 18 | | person, in the
business of
providing primarily private | 19 | | passenger vehicles to the public under a
rental agreement for | 20 | | a period
not to exceed 30 days.
| 21 | | "Rental period" means the term of the rental agreement.
| 22 | | "Renter" means a person obtaining the use of a vehicle | 23 | | from a
rental company under the
terms of a rental agreement for | 24 | | a period not to exceed 30 days.
| 25 | | "Self-service storage facility limited line licensee" | 26 | | means a person
authorized under the provisions of Section |
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| 1 | | 500-107 to sell certain coverages
relating to the rental of | 2 | | self-service storage facilities.
| 3 | | "Sell" means to exchange a contract of insurance by any | 4 | | means, for
money or its equivalent, on
behalf of an insurance | 5 | | company.
| 6 | | "Solicit" means attempting to
sell insurance or asking or | 7 | | urging a person to apply for a
particular kind of insurance | 8 | | from a particular company.
| 9 | | "Terminate" means the cancellation of the relationship | 10 | | between an insurance
producer and the
insurer or the | 11 | | termination of a producer's authority to transact insurance.
| 12 | | "Travel insurance" has the meaning provided in Section | 13 | | 1630 means insurance coverage for personal risks incident to | 14 | | planned travel, including, but not limited to: (1) the | 15 | | interruption or cancellation of a trip or event, (2) the loss | 16 | | of baggage or personal effects, (3) damages to accommodations | 17 | | or rental vehicles, or (4) sickness, accident, disability, or | 18 | | death occurring during travel. "Travel insurance" does not | 19 | | include major medical plans that provide comprehensive medical | 20 | | protection for travelers with trips lasting 6 months or | 21 | | longer, including those working overseas as an ex-patriot or | 22 | | as military personnel on deployment . | 23 | | "Uniform Business Entity Application" means the current | 24 | | version of the
National Association of Insurance | 25 | | Commissioners' Uniform
Business Entity Application for | 26 | | nonresident business entities.
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| 1 | | "Uniform Application" means the current version of the | 2 | | National Association
of Insurance Commissioners' Uniform
| 3 | | Application for
nonresident producer licensing.
| 4 | | "Vehicle" or "rental vehicle" means a motor vehicle of (1) | 5 | | the private
passenger
type, including passenger vans, mini | 6 | | vans, and sport utility vehicles or (2)
the cargo type,
| 7 | | including cargo vans, pickup trucks, and trucks with a gross | 8 | | vehicle
weight of less than
26,000 pounds the operation of | 9 | | which does not require the operator to possess a
commercial
| 10 | | driver's license.
| 11 | | "Webinar" means an online educational presentation during | 12 | | which a live and participating instructor and participating | 13 | | viewers, whose attendance is periodically verified throughout | 14 | | the presentation, actively engage in discussion and in the | 15 | | submission and answering of questions. | 16 | | (Source: P.A. 97-113, eff. 7-14-11; 98-1165, eff. 6-1-15 .)
| 17 | | (215 ILCS 5/Art. XLVI heading new) | 18 | | ARTICLE XLVI. TRAVEL INSURANCE | 19 | | (215 ILCS 5/1620 new) | 20 | | Sec. 1620. Short title. This Article may be cited as the | 21 | | Travel Insurance Act. | 22 | | (215 ILCS 5/1625 new) | 23 | | Sec. 1625. Scope and purposes. |
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| 1 | | (a) The purpose of this Article is to promote the public | 2 | | welfare by creating a comprehensive legal framework within | 3 | | which travel insurance may be sold in this State. | 4 | | (b) This Article applies to travel insurance that covers | 5 | | any resident of this State, and is sold, solicited, | 6 | | negotiated, or offered in this State, and policies and | 7 | | certificates that are delivered or issued for delivery in this | 8 | | State. This Article does not apply to cancellation fee waivers | 9 | | or travel assistance services except as expressly provided in | 10 | | this Article. | 11 | | (c) All other applicable provisions of this State's | 12 | | insurance laws shall continue to apply to travel insurance, | 13 | | except that the specific provisions of this Article shall | 14 | | supersede any general provisions of law that would otherwise | 15 | | be applicable to travel insurance. | 16 | | (215 ILCS 5/1630 new) | 17 | | Sec. 1630. Definitions. As used in this Article: | 18 | | "Aggregator site" means a website that provides access to | 19 | | information regarding insurance products from more than one | 20 | | insurer, including product and insurer information, for use in | 21 | | comparison shopping. | 22 | | "Blanket travel insurance" means a policy of travel | 23 | | insurance issued to any eligible group providing coverage for | 24 | | specific classes of persons defined in the policy with | 25 | | coverage provided to all members of the eligible group without |
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| 1 | | a separate charge to individual members of the eligible group. | 2 | | "Cancellation fee waiver" means a contractual agreement | 3 | | between a supplier of travel services and its customer to | 4 | | waive some or all of the nonrefundable cancellation fee | 5 | | provisions of the supplier's underlying travel contract with | 6 | | or without regard to the reason for the cancellation or form of | 7 | | reimbursement. A "cancellation fee waiver" is not insurance. | 8 | | "Eligible group", solely for the purposes of travel | 9 | | insurance, means 2 or more persons who are engaged in a common | 10 | | enterprise, or have an economic, educational, or social | 11 | | affinity or relationship, including, but not limited to, any | 12 | | of the following: | 13 | | (1) any entity engaged in the business of providing | 14 | | travel or travel services, including, but not limited to: | 15 | | tour operators, lodging providers, vacation property | 16 | | owners, hotels and resorts, travel clubs, travel agencies, | 17 | | property managers, cultural exchange programs, and common | 18 | | carriers or the operator, owner, or lessor of a means of | 19 | | transportation of passengers, including, but not limited | 20 | | to, airlines, cruise lines, railroads, steamship | 21 | | companies, and public bus carriers, wherein with regard to | 22 | | any particular travel or type of travel or travelers, all | 23 | | members or customers of the group must have a common | 24 | | exposure to risk attendant to such travel; | 25 | | (2) any college, school, or other institution of | 26 | | learning covering students, teachers, employees, or |
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| 1 | | volunteers; | 2 | | (3) any employer covering any group of employees, | 3 | | volunteers, contractors, board of directors, dependents, | 4 | | or guests; | 5 | | (4) any sports team, camp, or sponsor of any sports | 6 | | team or camp covering participants, members, campers, | 7 | | employees, officials, supervisors, or volunteers; | 8 | | (5) any religious, charitable, recreational, | 9 | | educational, or civic organization, or branch of an | 10 | | organization covering any group of members, participants, | 11 | | or volunteers; | 12 | | (6) any financial institution or financial institution | 13 | | vendor, or parent holding company, trustee, or agent of or | 14 | | designated by one or more financial institutions or | 15 | | financial institution vendors, including account holders, | 16 | | credit card holders, debtors, guarantors, or purchasers; | 17 | | (7) any incorporated or unincorporated association, | 18 | | including labor unions, having a common interest, | 19 | | constitution and bylaws, and organized and maintained in | 20 | | good faith for purposes other than obtaining insurance for | 21 | | members or participants of such association covering its | 22 | | members; | 23 | | (8) any trust or the trustees of a fund established, | 24 | | created, or maintained for the benefit of and covering | 25 | | members, employees or customers, subject to the Director's | 26 | | permitting the use of a trust and the State's premium tax |
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| 1 | | provisions, of one or more associations meeting the | 2 | | requirements of paragraph (7) of this definition; | 3 | | (9) any entertainment production company covering any | 4 | | group of participants, volunteers, audience members, | 5 | | contestants, or workers; | 6 | | (10) any volunteer fire department, ambulance, rescue, | 7 | | police, court, or any first aid, civil defense, or other | 8 | | such volunteer group; | 9 | | (11) preschools, day care institutions for children or | 10 | | adults, and senior citizen clubs; | 11 | | (12) any automobile or truck rental or leasing company | 12 | | covering a group of individuals who may become renters, | 13 | | lessees, or passengers defined by their travel status on | 14 | | the rented or leased vehicles. The common carrier, the | 15 | | operator, owner or lessor of a means of transportation, or | 16 | | the automobile or truck rental or leasing company, is the | 17 | | policyholder under a policy to which this Section applies; | 18 | | or | 19 | | (13) any other group where the Director has determined | 20 | | that the members are engaged in a common enterprise, or | 21 | | have an economic, educational, or social affinity or | 22 | | relationship, and that issuance of the policy would not be | 23 | | contrary to the public interest. | 24 | | "Fulfillment materials" means documentation sent to the | 25 | | purchaser of a travel protection plan confirming the purchase | 26 | | and providing the travel protection plan's coverage and |
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| 1 | | assistance details. | 2 | | "Group travel insurance" means travel insurance issued to | 3 | | any eligible group. | 4 | | "Limited lines travel insurance producer" means one of the | 5 | | following: | 6 | | (1) a licensed managing general agent or third-party | 7 | | administrator; | 8 | | (2) a licensed insurance producer, including a limited | 9 | | lines producer; or | 10 | | (3) a travel administrator. | 11 | | "Offering and disseminating" means the following: | 12 | | (1) Providing information to a prospective or current | 13 | | policyholder on behalf of a limited lines travel insurance | 14 | | entity, including brochures, buyer guides, descriptions of | 15 | | coverage, and price. | 16 | | (2) Referring specific questions regarding coverage | 17 | | features and benefits from a prospective or current | 18 | | policyholder to a limited lines travel insurance entity. | 19 | | (3) Disseminating and processing applications for | 20 | | coverage, coverage selection forms, or other similar forms | 21 | | in response to a request from a prospective or current | 22 | | policyholder. | 23 | | (4) Collecting premiums from a prospective or current | 24 | | policyholder on behalf of a limited lines travel insurance | 25 | | entity. | 26 | | (5) Receiving and recording information from a |
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| 1 | | policyholder to share with a limited lines travel | 2 | | insurance entity. | 3 | | "Primary policyholder" means an individual person who | 4 | | elects and purchases individual travel insurance. | 5 | | "Travel administrator" means a person who directly or | 6 | | indirectly underwrites, collects charges, collateral, or | 7 | | premiums from, or adjusts or settles claims on residents of | 8 | | this State in connection with travel insurance, except that a | 9 | | person shall not be considered a travel administrator if that | 10 | | person's only actions that would otherwise cause the person to | 11 | | be considered a travel administrator are among the following: | 12 | | (1) a person working for a travel administrator to the | 13 | | extent that the person's activities are subject to the | 14 | | supervision and control of the travel administrator; | 15 | | (2) an insurance producer selling insurance or engaged | 16 | | in administrative and claims-related activities within the | 17 | | scope of the producer's license; | 18 | | (3) a travel retailer offering and disseminating | 19 | | travel insurance and registered under the license of a | 20 | | limited lines travel insurance producer in accordance with | 21 | | Section 1635; | 22 | | (4) an individual adjusting or settling claims in the | 23 | | normal course of that individual's practice or employment | 24 | | as an attorney-at-law and who does not collect charges or | 25 | | premiums in connection with insurance coverage; or | 26 | | (5) a business entity that is affiliated with a |
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| 1 | | licensed insurer while acting as a travel administrator | 2 | | for the direct and assumed insurance business of an | 3 | | affiliated insurer. | 4 | | "Travel assistance services" means noninsurance services | 5 | | for which the consumer is not indemnified based on a | 6 | | fortuitous event, and where providing the service does not | 7 | | result in transfer or shifting of risk that would constitute | 8 | | the business of insurance. "Travel assistance services" | 9 | | include, but are not limited to: security advisories; | 10 | | destination information; vaccination and immunization | 11 | | information services; travel reservation services; | 12 | | entertainment; activity and event planning; translation | 13 | | assistance; emergency messaging; international legal and | 14 | | medical referrals; medical case monitoring; coordination of | 15 | | transportation arrangements; emergency cash transfer | 16 | | assistance; medical prescription replacement assistance; | 17 | | passport and travel document replacement assistance; lost | 18 | | luggage assistance; concierge services; and any other service | 19 | | that is furnished in connection with planned travel. "Travel | 20 | | assistance services" are not insurance and are not related to | 21 | | insurance. | 22 | | "Travel insurance" means insurance coverage for personal | 23 | | risks incident to planned travel, including, but not limited | 24 | | to: | 25 | | (1) the interruption or cancellation of a trip or | 26 | | event; |
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| 1 | | (2) the loss of baggage or personal effects; | 2 | | (3) damages to accommodations or rental vehicles; | 3 | | (4) sickness, accident, disability, or death occurring | 4 | | during travel; | 5 | | (5) emergency evacuation; | 6 | | (6) repatriation of remains; or | 7 | | (7) any other contractual obligations to indemnify or | 8 | | pay a specified amount to the traveler upon determinable | 9 | | contingencies related to travel as approved by the | 10 | | Director. | 11 | | "Travel insurance" does not include major medical plans | 12 | | that provide comprehensive medical protection for travelers | 13 | | with trips lasting 6 months or longer, including those working | 14 | | overseas as expatriates or as military personnel on | 15 | | deployment. | 16 | | "Travel insurance business entity" means a licensed | 17 | | insurance producer designated by an insurer as set forth in | 18 | | subsection (h) of Section 1635. | 19 | | "Travel protection plans" means plans that provide one or | 20 | | more of the following: travel insurance, travel assistance | 21 | | services, and cancellation fee waivers. | 22 | | "Travel retailer" means a business organization that | 23 | | makes, arranges, or offers travel services and, with respect | 24 | | to travel insurance, is limited to offering and disseminating | 25 | | as defined in this Section, unless otherwise licensed under | 26 | | subsection (b) of Section 1635. |
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| 1 | | (215 ILCS 5/1635 new) | 2 | | Sec. 1635. Licensing and registration. | 3 | | (a) The Director may issue to a travel insurance business | 4 | | entity that registers travel retailers under its license as | 5 | | described in paragraph (2) of subsection (c) of this Section a | 6 | | producer license as provided in paragraph (6) of subsection | 7 | | (a) of Section 500-35 of this Code. A travel insurance | 8 | | business entity license issued under this Section shall also | 9 | | authorize any employee of the travel insurance business entity | 10 | | to act individually on behalf and under the supervision of the | 11 | | travel insurance business entity licensee with respect to the | 12 | | coverage specified in this Section. Each travel insurance | 13 | | business entity licensed under this Section shall pay the | 14 | | Department a fee of $500 for its initial license and $500 for | 15 | | each renewal license, payable on May 31 annually. | 16 | | (b) The Director may issue to a travel retailer a limited | 17 | | lines producer license. A travel retailer license issued under | 18 | | this Section shall also authorize any employee of the travel | 19 | | retailer limited line licensee to act individually on behalf | 20 | | and under the supervision of the travel retailer limited line | 21 | | licensee with respect to the coverage specified in this | 22 | | Section. | 23 | | (c) Notwithstanding any other provision of law, a travel | 24 | | retailer may do the limited activities of offering and | 25 | | disseminating travel insurance on behalf of and under the |
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| 1 | | license of a supervising travel insurance business entity if | 2 | | the following conditions are met: | 3 | | (1) the travel insurance business entity or travel | 4 | | retailer provides to purchasers of travel insurance: | 5 | | (A) a description of the material terms or the | 6 | | actual material terms of the insurance coverage; | 7 | | (B) a description of the process for filing a | 8 | | claim; | 9 | | (C) a description of the review or cancellation | 10 | | process for the travel insurance policy; and | 11 | | (D) the identity and contact information of the | 12 | | insurer and travel insurance business entity; | 13 | | (2) at the time of licensure, the travel insurance | 14 | | business entity shall establish and maintain a register on | 15 | | a form prescribed by the Director of each travel retailer | 16 | | that offers travel insurance on the travel insurance | 17 | | business entity's behalf; the register shall be maintained | 18 | | and updated continuously by the travel insurance business | 19 | | entity and shall include the name, address, and contact | 20 | | information of the travel retailer and an officer or | 21 | | person who directs or controls the travel retailer's | 22 | | operations and the travel retailer's federal tax | 23 | | identification number; the travel insurance business | 24 | | entity shall submit the register to the Director annually | 25 | | on a form and in a manner approved by the Director; the | 26 | | limited lines producer shall also certify that the travel |
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| 1 | | retailer personnel who are offering and disseminating | 2 | | insurance under the travel retailer's registration | 3 | | complies with 18 U.S.C. 1033; | 4 | | (3) the travel insurance business entity has | 5 | | designated one of its employees as a licensed individual | 6 | | producer (a designated responsible producer or DRP) | 7 | | responsible for the travel insurance business entity's and | 8 | | its travel retailer's compliance with the travel insurance | 9 | | laws, rules, and regulations of this State; | 10 | | (4) the travel insurance business entity has paid all | 11 | | applicable insurance producer licensing fees as set forth | 12 | | in this Code; and | 13 | | (5) the travel insurance business entity requires each | 14 | | employee and authorized representative of the travel | 15 | | retailer whose duties include offering and disseminating | 16 | | travel insurance to receive a program of instruction or | 17 | | training that shall be subject to review by the Director; | 18 | | the training material shall, at a minimum, contain | 19 | | instructions on the types of insurance offered, ethical | 20 | | sales practices, and required disclosures to prospective | 21 | | customers. | 22 | | (d) Any travel retailer offering or disseminating travel | 23 | | insurance shall make available to prospective purchasers | 24 | | brochures or other written materials that: | 25 | | (1) provide the identity and contact information of | 26 | | the insurer and the travel insurance business entity; |
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| 1 | | (2) explain that the purchase of travel insurance is | 2 | | not required in order to purchase any other product or | 3 | | service from the travel retailer; and | 4 | | (3) explain that an unlicensed travel retailer is | 5 | | permitted to provide general information about the | 6 | | insurance offered by the travel retailer, including a | 7 | | description of the coverage and price, but is not | 8 | | qualified or authorized to answer technical questions | 9 | | about the terms and conditions of the insurance offered by | 10 | | the travel retailer or to evaluate the adequacy of the | 11 | | customer's existing insurance coverage. | 12 | | (e) A travel retailer's employee or authorized | 13 | | representative who is not licensed as an insurance producer | 14 | | may not: | 15 | | (1) evaluate or interpret the technical terms, | 16 | | benefits, and conditions of the offered travel insurance | 17 | | coverage; | 18 | | (2) evaluate or provide advice concerning a | 19 | | prospective purchaser's existing insurance coverage; or | 20 | | (3) hold himself, herself, or itself out as a licensed | 21 | | insurer, licensed producer, or insurance expert. | 22 | | (f) A travel retailer whose insurance-related activities, | 23 | | and those of its employees and authorized representatives, are | 24 | | limited to offering and disseminating travel insurance on | 25 | | behalf of and under the direction of a travel insurance | 26 | | business entity meeting the conditions stated in this Section |
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| 1 | | is authorized to do so and receive related compensation upon | 2 | | registration by the travel insurance business entity as | 3 | | described in paragraph (2) of subsection (c) of this Section. | 4 | | (g) Travel insurance may be provided under an individual | 5 | | policy or under a group, blanket, or master policy. | 6 | | (h) As the insurer designee, the travel insurance business | 7 | | entity is responsible for the acts of the travel retailer that | 8 | | is registered under its license. | 9 | | (i) Any entity that violates any provision of this Article | 10 | | shall be subject to all appropriate regulatory action as set | 11 | | forth in this Code. | 12 | | (j) Any person licensed in a major line of authority as an | 13 | | insurance producer is authorized to sell, solicit, and | 14 | | negotiate travel insurance. A property and casualty insurance | 15 | | producer is not required to become appointed by an insurer in | 16 | | order to sell, solicit, or negotiate travel insurance. | 17 | | (215 ILCS 5/1640 new) | 18 | | Sec. 1640. Travel protection plans. Travel protection | 19 | | plans may be offered for one price for the combined features | 20 | | that the travel protection plan offers in this State if: | 21 | | (1) the travel protection plan clearly discloses to | 22 | | the consumer, at or before the time of purchase, that it | 23 | | includes travel insurance, travel assistance services, and | 24 | | cancellation fee waivers, as applicable, and provides | 25 | | information and an opportunity, at or before the time of |
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| 1 | | purchase, for the consumer to obtain additional | 2 | | information regarding the features and pricing of each; | 3 | | and | 4 | | (2) the fulfillment materials: | 5 | | (A) describe and delineate the travel insurance, | 6 | | travel assistance services, and cancellation fee | 7 | | waivers in the travel protection plan; and | 8 | | (B) include the travel insurance disclosures and | 9 | | the contact information for persons providing travel | 10 | | assistance services, and cancellation fee waivers, as | 11 | | applicable. | 12 | | (215 ILCS 5/1645 new) | 13 | | Sec. 1645. Sales practices. | 14 | | (a) All persons offering travel insurance to residents of | 15 | | this State are subject to the Unfair Methods of Competition | 16 | | and Unfair and Deceptive Acts and Practices Article of this | 17 | | Code, except as otherwise provided in this Section. In the | 18 | | event of a conflict between this Article and other provisions | 19 | | of this Code regarding the sale and marketing of travel | 20 | | insurance and travel protection plans, the provisions of this | 21 | | Article shall control. | 22 | | (b) Offering or selling a travel insurance policy that | 23 | | could never result in payment of any claims for any insured | 24 | | under the policy is an unfair trade practice under Section | 25 | | 424. |
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| 1 | | (c) Marketing of travel insurance policies shall comply | 2 | | with the following: | 3 | | (1) All documents provided to consumers before the | 4 | | purchase of travel insurance, including, but not limited | 5 | | to sales materials, advertising materials, and marketing | 6 | | materials, shall be consistent with the travel insurance | 7 | | policy itself, including, but not limited to, forms, | 8 | | endorsements, policies, rate filings, and certificates of | 9 | | insurance. | 10 | | (2) For travel insurance policies or certificates that | 11 | | contain preexisting condition exclusions, information and | 12 | | an opportunity to learn more about the preexisting | 13 | | condition exclusions shall be provided any time prior to | 14 | | the time of purchase, and in the coverage's fulfillment | 15 | | materials. | 16 | | (3) The fulfillment materials and the information | 17 | | described in subparagraphs (A) through (D) of paragraph | 18 | | (1) of subsection (c) of Section 1635 shall be provided to | 19 | | a policyholder or certificate holder as soon as | 20 | | practicable following the purchase of a travel protection | 21 | | plan. Unless the insured has either started a covered trip | 22 | | or filed a claim under the travel insurance coverage, a | 23 | | policyholder or certificate holder may cancel a policy or | 24 | | certificate for a full refund of the travel protection | 25 | | plan price from the date of purchase of a travel | 26 | | protection plan until at least: |
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| 1 | | (A) 15 days following the date of delivery of the | 2 | | travel protection plan's fulfillment materials by | 3 | | postal mail; or | 4 | | (B) 10 days following the date of delivery of the | 5 | | travel protection plan's fulfillment materials by | 6 | | means other than postal mail.
For the purposes of this | 7 | | Section, delivery means handing fulfillment materials | 8 | | to the policyholder or certificate holder or sending | 9 | | fulfillment materials by postal mail or electronic | 10 | | means to the policyholder or certificate holder. | 11 | | (4) The company shall disclose in the policy | 12 | | documentation and fulfillment materials whether the travel | 13 | | insurance is primary or secondary to other applicable | 14 | | coverage. | 15 | | (5) Where travel insurance is marketed directly to a | 16 | | consumer through an insurer's website or by others through | 17 | | an aggregator site, it shall not be an unfair trade | 18 | | practice or other violation of law where an accurate | 19 | | summary or short description of coverage is provided on | 20 | | the web page, so long as the consumer has access to the | 21 | | full provisions of the policy through electronic means. | 22 | | (d) No person offering, soliciting, or negotiating travel | 23 | | insurance or travel protection plans on an individual or group | 24 | | basis may do so by using negative option or opt out, which | 25 | | would require a consumer to take an affirmative action to | 26 | | deselect coverage, such as unchecking a box on an electronic |
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| 1 | | form, when the consumer purchases a trip. | 2 | | (e) It shall be an unfair trade practice under Section 424 | 3 | | to market blanket travel insurance coverage as free. | 4 | | (f) Where a consumer's destination jurisdiction requires | 5 | | insurance coverage, it shall not be an unfair trade practice | 6 | | to require that a consumer choose between the following | 7 | | options as a condition of purchasing a trip or travel package: | 8 | | (1) purchasing the coverage required by the | 9 | | destination jurisdiction through the travel retailer or | 10 | | limited lines travel insurance producer supplying the trip | 11 | | or travel package; or | 12 | | (2) agreeing to obtain and provide proof of coverage | 13 | | that meets the destination jurisdiction's requirements | 14 | | before departure. | 15 | | (215 ILCS 5/1650 new) | 16 | | Sec. 1650. Travel insurance administrators. | 17 | | (a) Notwithstanding any other provisions of this Code, no | 18 | | entity shall act or represent itself as a travel administrator | 19 | | for travel insurance in this State unless that entity: | 20 | | (1) is a licensed property and casualty insurance | 21 | | producer in this State for activities permitted under that | 22 | | producer license; | 23 | | (2) holds a valid managing general agent license in | 24 | | this State; or | 25 | | (3) holds a valid third-party administrator license in |
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| 1 | | this State. | 2 | | (b) An insurer is responsible for the acts of a travel | 3 | | administrator administering travel insurance underwritten by | 4 | | the insurer, and is responsible for ensuring that the travel | 5 | | administrator maintains all books and records relevant to the | 6 | | insurer to be made available by the travel administrator to | 7 | | the Director upon request. | 8 | | (215 ILCS 5/1655 new) | 9 | | Sec. 1655. Policy. | 10 | | (a) Notwithstanding any other provision of this Code, | 11 | | travel insurance shall be classified and filed for purposes of | 12 | | rates and forms under an inland marine line of insurance, | 13 | | including travel insurance that provides coverage for | 14 | | sickness, accident, disability, or death occurring during | 15 | | travel, either exclusively, or in conjunction with related | 16 | | coverages of emergency evacuation or repatriation of remains, | 17 | | or incidental limited property and casualty benefits such as | 18 | | baggage or trip cancellation. | 19 | | (b) Travel insurance may be in the form of an individual, | 20 | | group, master, or blanket policy. | 21 | | (c) Eligibility and underwriting standards for travel | 22 | | insurance may be developed and provided based on travel | 23 | | protection plans designed for individual or identified | 24 | | marketing or distribution channels, provided those standards | 25 | | also meet this State's underwriting standards for inland |
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| 1 | | marine. | 2 | | (215 ILCS 5/1660 new) | 3 | | Sec. 1660. Rules. The Department may adopt rules to | 4 | | implement this Article. | 5 | | (215 ILCS 5/500-108 rep.) | 6 | | Section 10. The Illinois Insurance Code is amended by | 7 | | repealing Section 500-108.
| 8 | | Section 99. Effective date. This Act takes effect 90 days | 9 | | after becoming law.".
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