HB489 Alabama 2013 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Greg Wren
Republican
Session: Regular Session 2013
Title: Travel insurance, limited lines of, further regulated by Insurance Department, Sec. 27-7-5.2 added; Secs. 27-7-1, 27-7-14.1am'd.
Summary: HB489 creates a defined limited line for travel insurance and adds new requirements for travel retailers and producers to ensure disclosures, licensing, and compliance.
What This Bill Does
Adds a new limited-line travel insurance section (27-7-5.2) with definitions and rules for how travel insurance can be sold. Requires travel retailers to work under a licensed travel insurance producer, register retailers, designate a responsible producer, and meet fingerprinting, licensing fee, and training requirements. Requires clear disclosures to customers, maintains records, and restricts unlicensed staff from giving technical advice. Updates existing law definitions to recognize travel as a limited line and aligns related sections accordingly.

Who It Affects
Travel retailers: must be registered, identify the licensed producer on materials, provide required disclosures, maintain a retailer register, obtain training, and comply with fingerprinting and compliance rules.
Travel insurance producers: must supervise travel retailers, designate a DRP (designated responsible producer), pay licensing fees, ensure retailer compliance, and be responsible for retailer actions.
Consumers traveling: will receive clearer information about coverage, claims, and the non-necessity of purchasing travel insurance to obtain other services.
Insurers/underwriters: must be identified in disclosures and participate in the producer/retailer relationship under the new requirements.
Retail employees (unlicensed): may not evaluate terms, advise on existing coverage, or present themselves as licensed insurers or producers.
Regulators (Alabama Insurance Department/Commissioner): will regulate compliance, review training materials, and enforce trade practices rules.

Key Provisions
Creates 27-7-5.2 to define travel insurance, travel retailers, travel producers, and the designated responsible producer (DRP); clarifies that travel insurance is a limited line and excludes certain long-term medical plans.
Travel retailers may offer travel insurance only if a licensed travel insurance producer is identified on materials and the producer provides disclosures about terms, claims, and contact information for both insurer and producer.
Requires the travel producer to maintain a register of travel retailers, designate a DRP, ensure fingerprinting for key personnel, pay licensing fees, and provide staff training on insurance types, ethics, and disclosures.
Mandates brochures with insurer/producer information, the optional nature of travel insurance, and limits of what unlicensed staff may discuss or advise.
Prohibits unlicensed staff from interpreting terms, advising on existing coverage, or presenting themselves as licensed insurers or producers.
Stipulates that the travel producer is responsible for the retailer’s acts and that both travel producers and retailers are subject to applicable trade practices and enforcement provisions.
Amends 27-7-1 and 27-7-14.1 to update definitions and lines of authority, explicitly recognizing travel as a limited line and detailing related licensing and qualifications.
Effective date: becomes law on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Insurance Department