HB235 Summary

• Creates the Travel Insurance Act as Chapter 64 of Title 27 of the Code of Alabama, establishing a comprehensive legal framework for selling travel insurance in Alabama.

• Establishes licensing requirements for limited lines travel insurance producers and creates a registration system for travel retailers offering travel insurance under a licensed producer's direction.

• Requires travel insurers to pay premium taxes on travel insurance premiums from Alabama residents and limits reportable premiums to amounts allocable to travel insurance only, excluding travel assistance services or cancellation fee waivers.

• Prohibits unfair trade practices including selling policies that could never pay claims, using negative option/opt-out enrollment, marketing blanket coverage as free, and requires clear disclosure of coverage components when travel protection plans are sold as bundled products.

• Classifies travel insurance as inland marine insurance for rate and form filing purposes, with exception for policies covering sickness, accident, disability, or death during travel which may be filed under accident and health or inland marine lines.