S.B. 3079 - Insurance Updates Summary

• Eliminates optional limited licenses for travel insurance vending machines and newspaper promotional policies; redefines "travel insurance" to include coverage for trip cancellation, baggage loss, medical emergencies, evacuation, and related travel risks.

• Excludes dental insurers and dental service corporations from the definition of "administrator" or "third party administrator" to avoid dual regulation; increases surety bond requirements from $100,000 to $300,000 starting in the third year of licensure.

• Requires third-party administrators to include audited financial statements in annual report filings to the insurance commissioner for enhanced financial oversight.

• Adopts the National Association of Insurance Commissioners Suitability in Annuity Transactions Model Regulation, requiring insurance producers to act in consumers' best interests when recommending annuities and to provide specific disclosures regarding their licenses, affiliations, and compensation.

• Mandates insurers establish supervision systems to monitor annuity recommendations, requires producers to complete updated four-credit training courses on annuities by July 1, 2023, and establishes enforcement authority with the insurance commissioner effective December 31, 2022.