Wisconsin updating travel insurance regulations

The law classifies travel lines and puts regulations in place for ‘travel retailers.’

The law also establishes a limited lines travel insurance producer license designed for insurance intermediaries and travel administrators. (Credit: Jareya Nualthong/Adobe Stock)

Taking effect March 1, 2022, Wisconsin’s travel insurance law will classify travel insurance as part of inland marine lines as well as accident and health lines if the policy includes sickness and disability coverage, according to the state’s office of insurance.

Additionally, the law states intermediaries with authority to sell a property and casualty line are not required to be appointed by an insurer to sell travel insurance. Intermediaries licensed in any major line of authority can sell travel insurance, the Wisconsin Office of the Commissioner of Insurance (OCI) reported.

The law also establishes a limited lines travel insurance producer license designed for insurance intermediaries and travel administrators, which Wisconsin defines as “a person who directly or indirectly underwrites, collects charges or premiums from, or adjusts or settles claims of residents of this state in connection with travel insurance.”

The law also prohibits the use of “negative option” or opt-out processes that require the purchaser to take an affirmative action to decline coverage when buying a trip, OCI reported.

Rules for ‘travel retailers’

Business entities that offer travel services can now “offer and disseminate” travel insurance in Wisconsin under the licenses of a travel insurance producer if they adhere to the following guidelines:

The law stipulates that travel retailers, or their employees and authorized representatives, which are not licensed limited line travel insurance producers can’t take the following actions:

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