Bill Summary: Travel Insurance Regulation and Taxation

• Establishes comprehensive regulatory framework for travel insurance in Connecticut, including definitions for travel insurance, travel protection plans, limited lines travel insurance producers, travel retailers, and travel administrators, effective October 1, 2024.

• Requires limited lines travel insurance producers and designated travel retailers to comply with licensing, training, and disclosure requirements; allows licensed insurance producers to sell travel insurance without additional authorization.

• Mandates pre-purchase disclosure of preexisting condition exclusions, material terms, claim procedures, and cancellation rights; prohibits negative option/opt-out requirements for travel insurance sales.

• Imposes taxation on travel insurance premiums based on residency of primary policyholders for individual and group policies, and on principal place of business for blanket policies; requires insurers to report only travel insurance premiums, excluding travel assistance services and cancellation fee waivers.

• Establishes enforcement mechanisms including suspension, revocation, or denial of authorization for violations; designates violations by limited lines producers as unfair insurance practices and violations by travel retailers as unfair trade practices.