SB 1041 Summary

• Creates comprehensive regulatory framework for travel insurance in Arizona by establishing new chapter 28 in title 20 of Arizona Revised Statutes, defining travel insurance, travel administrators, and related entities.

• Allows travel retailers to offer travel insurance under a limited lines travel insurance producer business entity license if they register retailers, maintain employee training programs, provide required disclosures to customers, and designate a licensed individual producer responsible for regulatory compliance.

• Establishes that travel insurance must be classified under inland marine line of insurance for rate and form filing purposes, except accident and health coverage for sickness or death during travel may be filed under either inland marine or accident and health lines.

• Requires travel insurers to pay premium taxes on policies sold to Arizona residents and prohibits unfair sales practices including negative opt-out enrollment, marketing blanket coverage as free, and selling policies that could never result in claim payments.

• Clarifies that travel protection plans may combine travel insurance, travel assistance services (non-insurance support), and cancellation fee waivers at one price if consumers are clearly informed about all components and provided full disclosure in fulfillment materials.