House Passes Bill Dealing with Travel Insurance
HB 168 based on National Council of Insurance Legislators model
Thursday, April 4, 2013, Juneau, Alaska – The Alaska House of Representatives today unanimously passed a bill changing the definition of travel insurance in state law, and protecting consumers through clearer accountability.
House Bill 168, sponsored by the House Labor & Commerce Committee, follows model legislation agreed to by the National Council of Insurance Legislators, and looks to standardize the practice and definition of travel insurance in all 50 states.
“Consumers need the ability to distinguish between a retail travel agent, someone who prepares their travel, and a travel insurance broker, someone who creates the product and licenses it to the agent,” House Labor & Commerce Committee Chair Kurt Olson, R-Soldotna/Kenai, said. “The NCOIL model within House Bill 168 establishes a licensing framework with an emphasis on the insurer and not the agent, and improves consumer protection by requiring clearer accountability and notice over who is responsible for the sale.”
HB 168 adds a new section to state law defining travel insurance, allowing the Alaska Department of Commerce, Community and Economic Development’s Division of Insurance Director the ability to issue a limited license to a travel insurance broker.
HB 168 now moves to the Alaska Senate for consideration.