AZ Regulatory Bulletin 2014-09: Travel Insurance Producer Licensure

Department of Insurance State of Arizona Office of the Director Telephone: (602) 364-3471 Facsimile: (602) 364-3470 JANICE K. BREWER 2910 North 44th Street, Suite 210 GERMAINE L. MARKS Governor Phoenix, Arizona 85018-7269 Director www.azinsurance.gov REGULATORY BULLETIN 2014-091 TO: Insurance Industry Representatives, Insurance Trade Associations, Life & Disability Insurers, Property & Casualty Insurers, and Other Interested Parties FROM: Germaine L. Marks Director DATE: November 4, 2014 RE: Travel Insurance Producer Licensure The Arizona Legislature passed HB 2047 (Laws 2014, Chapter 24), which establishes a “limited lines travel insurance producer business entity” license and eliminates the individual “travel accident ticket and baggage insurance producer” license. These new provisions became effective on and after July 24, 2014. Prior to HB 2047 becoming effective, each ticket selling agent or other travel representative who solicited or sold over-the-counter, short-term, nonrenewable travel accident, ticket and baggage insurance was required to be licensed as a “travel accident ticket and baggage insurance” producer. HB 2047 removes the requirement for an individual to hold the travel accident ticket and baggage insurance producer license and removes the definition for that license, which effectively nullifies and eliminates the line of authority for each individual who held it as of July 24, 2014. Instead of individual licenses, HB 2047 requires a business entity to be licensed as a “limited lines travel insurance producer.” The business-entity producer must have an individually licensed insurance producer to be responsible for the entity’s compliance and must ensure individual travel retailer employees/representatives complete required training and furnish required information to travel insurance purchasers. To be eligible to offer travel insurance coverage under the new law (A.R.S. § 20-333), a travel retailer now has two options: 1. Become registered with a travel insurance producer business entity as a travel retailer, or 2. Become licensed as a travel insurance producer business entity. Please direct any questions related to this Regulatory Bulletin to Steven Fromholtz at (602) 364- 4457. 1 This Substantive Policy Statement is advisory only. A Substantive Policy Statement does not include internal procedural documents that only affect the internal procedures of the Agency, and does not impose additional requirements or penalties on regulated parties or include confidential information or rules made in accordance with the Arizona Administrative Procedure Act. If you believe that this Substantive Policy Statement does impose additional requirements or penalties on regulated parties you may petition the agency under Arizona Revised Statutes Section 41-1033 for a review of the Statement.