1. 1. Travel insurance, as that term is defined in this section, is a limited line of insurance.

2. 2. As used in this section:

1. a. 'Limited lines travel insurance producer' means a: 1. (1) Licensed third-party administrator; 2. (2) Licensed insurance producer, including a limited lines producer; or 3. (3) Travel administrator, as defined in section 26.1-58-01.

2. b. 'Offer and disseminate' means to provide general information, including a description of the coverage and price, as well as to process the application, collect premiums, and perform other nonlicensable activities permitted by the state.

3. c. 'Travel insurance' means insurance coverage for personal risks incident to planned travel, including interruption or cancellation of a trip or event; loss of baggage or personal effects; damages to accommodations or rental vehicles; sickness, accident, disability, or death occurring during travel; emergency evacuation; repatriation of remains; or any other contractual obligations to indemnify or pay a specified amount to the traveler upon determinable contingencies related to travel as approved by the commissioner. The term does not include a major medical plan that provides comprehensive medical protection for an individual on a trip lasting at least six months, including an individual working or residing overseas as an expatriate, or any other product that requires a specific insurance producer license.

4. d. 'Travel retailer' means a business entity that makes, arranges, or offers travel services and which may offer and disseminate travel insurance as a service to customers on behalf of and under the direction of a limited lines travel insurance producer.

3. 3. Notwithstanding any other provision of law:

1. a. The commissioner may issue a limited lines travel insurance producer license to an individual or business entity that files an application with the commissioner in a form and manner prescribed by the commissioner. A licensed limited lines travel insurance producer may sell, solicit, or negotiate travel insurance through a licensed insurer. A person may not act as a limited lines travel insurance producer or travel insurance retailer unless properly licensed or registered.

2. b. A travel retailer may offer and disseminate travel insurance under a limited lines travel insurance producer business entity license only if the following conditions are met: 1. (1) The limited lines travel insurance producer or travel retailer provides to purchasers of travel insurance: 1. (a) A description of the material terms or the actual material terms of the insurance coverage; 2. (b) A description of the claim filing process; 3. (c) A description of the policy review or cancellation process for the travel insurance policy; and 4. (d) The identity and contact information of the insurer and limited lines producer. 2. (2) At the time of licensure, the limited lines travel insurance producer establishes and maintains a register of each travel retailer that offers insurance on the behalf of the producer. The register must be on a form prescribed by the commissioner. Annually, the register must be updated by the limited lines travel insurance producer. The register must include the name, address, and contact information of the travel retailer and a person that controls the travel retailer's operations. The register must include the travel retailer's federal tax identification number. Upon request, the limited lines travel insurance producer shall submit the register to the insurance department. The limited lines producer shall certify that the travel retailer registered complies with the Violent Crime and Law Enforcement Act of

1994 [Pub. L. 103-322; 108 Stat. 1796; 18 U.S.C. 1033 et seq.]. The grounds for the suspension, revocation, and penalties applicable to resident insurance producers under this chapter, must be applicable to limited lines travel insurance producers and travel retailers.

1. (3) The limited lines travel insurance producer designates one of the producer's licensed insurance employees as the individual responsible for the compliance with the state's travel insurance laws, rules, and regulations.
2. (4) The designated employee, president, secretary, treasurer, or any other individual who controls the producer's insurance operations complies with the fingerprinting requirements applicable to insurance producers in the resident state of the limited lines travel insurance producer.
3. (5) The limited lines travel insurance producer pays all applicable licensing fees as set forth in state law.
4. (6) The limited lines travel insurance producer requires each employee and authorized representative of the travel retailer, who offer and disseminate travel insurance, to receive training, which is subject, at the discretion of the commissioner, to review and approval. The training material must contain instructions on the type of insurance offered, ethical sales practices, and required disclosures to prospective customers.4. If the insurance commissioner determines that a travel retailer, or a travel retailer's employee has violated any provision of this chapter or any other provision of this title, the commissioner may:- a. Direct the limited lines travel insurance producer to implement a corrective action plan with the travel retailer; or
5. b. Revoke the authorization of the travel retailer to transact travel insurance on behalf of the limited lines travel insurance producer under its license and direct the limited lines travel insurance producer to remove the travel retailer's name from its register.5. If the insurance commissioner determines that a travel retailer, or a travel retailer's employee, has violated any provision in this chapter or any other provision of this title, the commissioner may:- a. Suspend or revoke the license of the limited lines travel insurance producer;
6. b. Issue a cease and desist order against the license of the limited lines travel insurance producer; and
7. c. Impose a monetary fine on the limited lines travel insurance producer.6. Limited lines travel insurance producers, and those registered under the producer's license, are exempt from continuing education requirements.7. A travel retailer shall make brochures or other written materials that have been approved by the travel insurer available to prospective purchasers. The materials must include information that, at a minimum:- a. Provides the identity and contact information of the insurer and the limited lines travel insurance producer;
8. b. Explains the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer; and
9. c. Explains an unlicensed travel retailer may provide only general information about the insurance offered by the travel retailer, including a description of the coverage and price. An unlicensed travel retailer is not qualified or authorized to answer technical questions about the terms and conditions of the insurance offered by the travel retailer or evaluate the adequacy of existing insurance coverage.8. An unlicensed employee or authorized representative of a travel retailer may not:- a. Evaluate or interpret the technical terms, benefits, or conditions of the offered travel insurance coverage;
10. b. Evaluate or advise a prospective purchaser regarding existing insurance coverage;
11. c. Be held out as a licensed insurer, licensed producer, or insurance expert; or

d. Be directly paid a commission or any other compensation by an insurer for the sale of insurance, except in accordance with this chapter and chapter 26.1-58.

9. Notwithstanding any other provision of law, a travel retailer whose insurance-related activities, and those of the travel retailer's employees and authorized representatives, are limited to offering and disseminating travel insurance on behalf of and under the direction of a limited lines travel insurance producer meeting the conditions in this section, is authorized to receive related compensation, upon registration by the limited lines travel insurance producer as described in paragraph 2 of subdivision b of subsection 3.

10. Travel insurance may be provided under an individual policy or under a group or blanket policy.

11. The limited lines travel insurance producer is responsible for the acts of the travel retailer. The limited lines travel insurance producer shall ensure the travel retailer complies with this chapter and chapter 26.1-58.

12. A person licensed in a major line of authority as an insurance producer is authorized to sell, solicit, and negotiate travel insurance. A property and casualty insurance producer is not required to become appointed by an insurer in order to sell, solicit, or negotiate travel insurance.