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CA Department of Insurance

Limited Lines Travel Insurance Agents: Authorizing Act and Prohibited Acts

Authorizing Act

Assembly Bill 2354 (Chapter 257, Statutes of 2012) was signed into law by Governor Brown and takes effect on January 1, 2013. This law authorizes the Commissioner to issue a limited lines travel insurance agent license to any organization engaged in transacting travel insurance through travel retailers and defines a limited lines travel insurance agent to mean an insurer designee that is licensed to transact travel insurance.

Prohibited Acts

The travel retailer's employees, under the authority of the limited lines travel insurance agent, are not qualified or authorized to:

  • Answer technical questions about the benefits, exclusions, and conditions of any of the insurance offered by the travel retailer.
  • Evaluate the adequacy of the prospective insured's existing insurance coverage. (Section 1754 (a)(8)(B) of the California Insurance Code (CIC))

Enforcement Provisions

If the commissioner determines that a travel retailer, or a travel retailer's employee, has violated any provision of this article or any other provision of this code, the commissioner may:

  • Direct the limited lines travel insurance agent to implement a corrective action plan with the travel retailer.
  • Direct the limited lines travel insurance agent to revoke the authorization of the travel retailer to transact travel insurance on its behalf and under its license and to remove the travel retailer's name from its register.

In addition, if the commissioner determines that a travel retailer, or a travel retailer's employee, has violated any provision in this article or any other provision of this code, the commissioner, after notice and hearing, may:

  • Suspend or revoke the license of the limited lines travel insurance agent as authorized under this code.
  • Impose a monetary fine on the limited lines travel insurance agent.

A limited lines travel insurance agent who aids and abets a travel retailer in the transaction of travel insurance or aids and abets a travel retailer in any activity concerning travel insurance after being directed to revoke the travel retailer's authorization, in addition to any other action authorized under the California Insurance Code, shall be subject to a monetary penalty pursuant to paragraphs (2) and (3) of subdivision (a) of Section 12921.8. (Section 1754(c) of the California Insurance Code)

The conduct of the travel retailer employees who have been designated to transact travel insurance shall be deemed the conduct of the limited lines travel insurance agent. (Section 1754(d) of the California Insurance Code)

 

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