Travel Insurance Producer
The Arizona Legislature passed HB 2047 (Laws 2014, Chapter 24), which establishes a “limited lines travel insurance producer business entity” license and eliminates the individual “travel accident ticket and baggage insurance producer” license. These new provisions became effective on and after July 24, 2014.
Prior to HB 2047 becoming effective, each ticket selling agent or other travel representative who solicited or sold over-the-counter, short-term, nonrenewable travel accident, ticket and baggage insurance was required to be licensed as a “travel accident ticket and baggage insurance” producer. HB 2047 removes the requirement for an individual to hold the travel accident ticket and baggage insurance producer license and removes the definition for that license, which effectively nullifies and eliminates the line of authority for each individual who held it as of July 24, 2014.
Instead of individual licenses, HB 2047 requires a business entity to be licensed as a “limited lines travel insurance producer.” The business-entity producer must have an individually licensed insurance producer to be responsible for the entity’s compliance and must ensure individual travel retailer employees/representatives complete required training and furnish required information to travel insurance purchasers.
To be eligible to offer travel insurance coverage under the new law (A.R.S. § 20-333), a travel retailer now has two options:
- Become registered as a travel retailer with an Arizona-licensed travel insurance producer business entity, or
- Become licensed as a travel insurance producer business entity.