1. What is Travel Insurance?
"Travel insurance" means insurance coverage for personal risks incident to planned travel, including all of the following:
- 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. "Travel insurance" does not include major medical plans that provide comprehensive medical protection for a traveler with a trip lasting six months or longer, including a plan covering a person working overseas as an expatriate or in a deployed military unit.
2. What is the definition of a Limited Lines Travel insurance agent?
It means an individual or business entity licensed to sell, solicit, or negotiate travel insurance according to Ohio Revised Code 3905.064.
3. Does the department issue Limited Lines Travel insurance licenses to individuals and business entities?
Yes, the superintendent of insurance issues limited lines travel insurance agent licenses to individuals or business entities. The limited lines travel insurance agent license authorizes the holder of the license to sell, solicit, or negotiate travel insurance through a licensed insurer.
4. What does the department require to issue a limited lines travel insurance license?
The department of insurance may issue a limited lines travel insurance agent license to an individual or business entity to sell, solicit, or negotiate travel insurance through a licensed insurer if:
- The individual or business entity submits an application to the department;
- The individual or business entity has paid all applicable fees; and
- Any other documents requested by the department.
5. What are the fees for obtaining or renewing a limited lines travel insurance license?
The initial application fee is $10.00 and the renewal application fee is $25.00
6. What is a "designated responsible insurance agent" for travel insurance?
A designated responsible insurance agent is an individual who is an employee of a limited lines travel insurance agent and who is responsible for limited lines travel insurance agent's compliance with the travel insurance laws and rules of this state.
7. What are the requirements to become a "designated responsible insurance agent" for a limited lines travel insurance business entity?
The designated responsible insurance agent must:
- Be an employee of a limited lines travel insurance agency;
- Be a licensed insurance agent qualified with an active line of authority of travel, property or personal lines; and
- Comply with the fingerprinting requirements of section 3905.051 of the Revised Code or the applicable fingerprinting requirements of the home state of the limited lines travel insurance agent.
8. Do the limited lines travel BE agency need to designate a responsible individual agent at the time of initial and renewal application and maintain at least one active designated responsible individual throughout the duration of the license?
Yes, at least one individual that is actively licensed in Ohio for travel, property or personal lines insurance must be designated as the limited lines travel insurance entity’s designated responsible agent at the time of initial application and renewal application. Additionally, the limited lines travel insurance entity must update the department if the individual affiliated as the designated responsible individual changes during the periods between applications.
9. What is a "travel retailer"?
A "travel retailer" is a business entity that makes, arranges, or offers travel services, and that may offer or sell travel insurance as a service to its customers on behalf of, and under the direction of, a limited lines travel insurance agent in conjunction with the making, arranging, or offering of travel services.
10. Can an individual licensed as a limited lines travel agent sponsor a travel retailer?
No, a travel retailer may offer and sell is travel insurance only under the license of a limited lines travel insurance agent that is a business entity.
11. What does a limited lines travel agent need to do to notify the department of sponsored travel retailers?
- The limited lines travel agent shall establish and maintain a travel retailer registration form of each travel retailer that offers or sells travel insurance on the agent’s behalf, and
- The limited lines travel agent shall submit the travel retailer registration form to the department upon request.
12. What conditions must be met by the travel retailer in order for the travel retailer to offer and sell travel insurance under a limited lines travel insurance agent’s license?
- An active limited lines travel insurance agent that is a business entity must sponsor the travel retailer;
- The limited lines travel insurance agent must complete and maintain an accurate and current Travel Retailer Registration form;
- The limited lines travel insurance agent or travel retailer provides all of the following information to purchasers of travel insurance at the time of sale or in the fulfillment materials provided to purchasers:
- A description of the material terms or the actual terms of the insurance coverage;
- A description of the process for filing a claim;
- A description of the review or cancellation process for the travel insurance policy;
- The identity and contact information of the insurer and limited lines travel insurance agent.
- The limited lines travel insurance agent business entity and the responsible insurance agent are responsible for the acts of the travel retailer and use reasonable means to ensure compliance with Ohio law by the travel retailer;
- The limited lines travel insurance agent requires each employee and authorized representative of the travel retailer, whose duties include offering or selling travel insurance, to receive a program of instruction or training.
- The training material shall, at minimum, contain instructions on the types of insurance offered, ethical sales practices, and required disclosures to prospective customers.
- The superintendent may review all training programs or materials at the superintendent's discretion. f) The travel retailer offers or sells the travel insurance only in conjunction with the making, arranging, or offering of travel services.
13. Are there any education requirements for limited lines travel agents or employees of the travel retailer?
No, limited lines travel insurance agents, as well as any travel retailer and the retailer's employees that are properly registered, are exempt from any examination and education requirements as set forth in section 3905.04 of the Revised Code.
14. Are there any required documents and/or information that a travel retailer must provide to prospective purchasers of travel insurance?
Yes, any travel retailer offering or selling travel insurance shall make available to prospective purchasers brochures or other written materials that contain all of the following:
- The identity and contact information of the insurer and the limited lines travel insurance agent;
- An explanation that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer;
- An explanation that an unlicensed travel retailer is permitted to provide general information about the insurance offered by the travel retailer, including a description of the coverage and price, but is not qualified or authorized to answer technical questions about the terms and conditions of the insurance offered by the travel retailer or to evaluate the adequacy of the customer's existing insurance coverage.
15. Are there any restrictions of employees of a travel retailer in relation to selling or offering travel insurance?
Yes, a travel retailer's employee or authorized representative who are not licensed as an insurance agent shall not do any of the following:
- Evaluate or interpret the technical terms, benefits, and conditions of the offered travel insurance coverage;
- Evaluate or provide advice concerning a prospective purchaser's existing insurance coverage;
- Hold itself out as a licensed insurer, licensed agent, or insurance expert; and d) Offer or sell travel insurance unless the travel insurance is offered or sold in conjunction with and incidental to the sale of travel services.
16. Are there any compensation restrictions for travel retailers when offering or selling travel insurance?
Notwithstanding any other provision of law, a travel retailer whose insurance-related activities, and those of its employees and authorized representatives, are limited to offering or selling travel insurance on behalf of and under the direction of a limited lines travel insurance agent that meets the requirements of ORC 3905.064 (G), is authorized to offer and sell insurance and receive related compensation for these services, if the travel retailer is registered by the limited lines travel insurance agent as described in division (D) of section 3905.064 of the Ohio Revised Code. Any compensation paid to a travel retailer's employee or authorized representative for the services shall be incidental to the employee's or authorized representative's overall compensation and not based primarily on the number of customers who purchase travel insurance coverage. a) Nothing in 3905.064 of the Ohio Revised Code shall be construed to prohibit payment of compensation to a travel retailer or its employees or authorized representatives for activities under the limited lines travel insurance agent's license that is incidental to the overall compensation of the travel retailer or the employees or authorized representatives of the facility. b) All costs paid or charged to a consumer for the purchase of travel insurance or related services shall be separately itemized on the customer's bill.
17. Do the limited lines travel insurance agent license expire?
Yes, all limited lines travel insurance agent’s license shall be renewed on a biennial basis as set forth in sections 3905.06 and 3905.07 of the Revised Code.
18. What happens to the travel retailer’s authority to sell and offer travel insurance if the license of the sponsoring limited lines travel insurance agent license expires or becomes inactive?
The travel retailer no longer may sell or offer travel insurance until the travel retailer is sponsored by a new limited lines travel insurance agent or the travel retailer obtains its own limited lines travel insurance agent’s license.
19. How can an individual who is not an employee of a travel retailer sell or offer travel insurance?
The individual will need to obtain their own limited lines travel insurance agent’s license. Once licensed the individual can sell, solicit or negotiate travel insurance on behalf of insurers. Most individuals will be affiliated with a license limited lines travel insurance agent that is a business entity.
20. What happens if travel insurance is offered or sold by without proper licensure or registration?
Any limited lines travel insurance agent, or any travel retailer offering or selling travel insurance under a limited lines travel insurance agent, that fails to comply with the provisions of section 3905.064 of the Ohio Revised Code is deemed to have engaged in an unfair and deceptive act or practice in the business of insurance as defined in section 3901.21 of the Revised Code and is subject to section 3905.14 of the Revised Code.
21. Can travel insurance be provided under individual or group insurance?
Yes, travel insurance may be provided under individual or group insurance.
