Travel Insurance Model Law Adopted by the NAIC

On December 19, 2018, the National Association of Insurance Commissioners (“NAIC”) adopted a Travel Insurance Model Law after three years of development in the Travel Insurance Working Group. Largely based off the National Council of Insurance Legislators’ (“NCOIL”) March 2017 version, the NAIC Travel Insurance Model Law intends to create a foundation for states to enact regulations to help travel insurance align with to the needs of consumers.

The Model Law classifies travel insurance as an inland marine line of insurance for the purposes of form and rate filings. However, if the travel insurance policy covers sickness, accident, disability or death occurring during travel, either exclusively or in conjunction with related coverages of an emergency evacuation or repatriation of remains, the policy may be filed as either an accident and health product or as an inland marine product.

Additionally, the NAIC Travel Insurance Model Law sets forth standards for a Limited Lines Travel Insurance Producer License with which insurance producers can sell, solicit, and negotiate travel insurance.

For any questions regarding the NAIC’s Travel Insurance Model Law, please contact Westmont Associates, Inc.