HB235 Alabama 2022 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

Regular Session 2022

Title

Travel insurance, Travel Insurance Act, created, licensing and registration requirements revised, sale of travel insurance, establish sales practices standards, Secs. 27-64-1 to 27-64-10, inclusive, added; Sec. 27-7-5.2 repealed

Summary

HB235 creates the Travel Insurance Act in Alabama to regulate travel insurance, licensing for limited lines producers and travel retailers, sales practices, and related requirements, replacing the previous framework.

What This Bill Does

It adds Chapter 64 to Title 27 and repeals the old travel insurance section, establishing a comprehensive framework for selling travel insurance in Alabama. It requires limited lines travel insurance producers and travel retailers to be licensed or registered, with rules for training, disclosures to customers, and recordkeeping. It sets standards for travel protection plans, fulfillment materials, refund rights, and marketing practices, and classifies travel insurance for rate and form filings as inland marine, with premium tax and regulatory oversight assigned to insurers and the commissioner. It also gives the commissioner authority to adopt rules to implement the act.

Who It Affects

• Limited lines travel insurance producers and travel retailers: must obtain licenses/registrations, follow training requirements, maintain records, and comply with disclosure and marketing rules.
• Travelers and consumers buying travel insurance: will receive clearer information, required disclosures, fulfillment materials, and defined refund rights and protections in the sale of travel protection plans.

Key Provisions

• Creates Travel Insurance Act (Chapter 64) in Title 27 and repeals Section 27-7-5.2.
• Defines key terms including aggregator site, blanket travel insurance, eligible group, travel protection plan, travel administrator, and travel retailer.
• Authorizes the commissioner to issue limited lines travel insurance producer licenses; requires licensing/registration for travel retailers; includes fingerprinting, annual registration, and designation of a responsible producer; requires training for employees.
• Requires consumer disclosures and approved brochures; prohibits unlicensed personnel from giving technical advice; prohibits negative option marketing and ensures accurate pre-purchase information.
• Imposes premium tax rules on travel insurance premiums and requires documentation of policyholder residence and correct allocation of travel insurance premiums for tax purposes.
• Allows travel protection plans to be sold for a single price if disclosures clearly separate coverage components; requires fulfillment materials to describe coverage, travel assistance services, and cancellation fee waivers.
• Classifies travel insurance under inland marine for rate/form filings, with potential alignment to accident/health lines where appropriate.
• Gives the commissioner authority to adopt rules to implement the act; imposes travel administrator licensing requirements and assigns insurer responsibility for the acts of travel administrators; clarifies recordkeeping and compliance.
• Repeals the prior travel insurance licensure section (27-7-5.2) and sets an effective date for the act.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance