Senate Commerce Committee Statement to Senate, No. 2783 — State of New Jersey (December 12, 2024)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 2783, State of New Jersey, dated December 12, 2024, reporting the bill favorably with committee amendments. As amended, the bill, named the "Travel Insurance Act," would codify a legal framework for travel insurance and travel-assistance services, including licensing and registration of limited lines travel insurance producers and insurance premium tax on certain travel insurance premiums. The amendments let property or casualty insurance producers sell travel insurance, allow marketing through an insurer's website with an accurate summary of coverage, and extend the effective date from 90 to 180 days after enactment. As amended, the bill is identical to Assembly Bill No. 3696 (1R).

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
2783

with
committee amendments

STATE
OF NEW JERSEY

DATED: DECEMBER
12, 2024

The Senate Commerce Committee reports favorably and
with committee amendments Senate Bill No. 2783.

As amended, this bill, named the “Travel Insurance Act,” would replace and expand
existing applicable regulatory standards by providing a comprehensive
codification of the legal framework specific to travel insurance and
travel-assistance services. Specifically, the bill would:

(1) define
operative terms relative to the licensing of travel insurance producers and the
sale of travel insurance products and related services;

(2) establish
a licensing and registration framework for limited lines travel insurance
producers;

(3) impose
the State’s existing requirements with respect to insurance premium tax on
certain travel insurance premiums; and

(4) codify
established practices with respect to how travel insurance and related products
are sold, administered, and classified for purposes of rate and form
regulation.

As amended and reported by the committee, Senate Bill
No. 2783 is identical to Assembly Bill No. 3696 (1R).

COMMITTEE AMENDMENTS

The committee amended the bill to:

(1) remove references to third party administrators;

(2) clarify that persons licensed in a property or
casualty authority as an insurance producer will be authorized to sell,
solicit, and negotiate travel insurance;

(3) allow travel insurance policies to be marketed
directly to a consumer through an insurer’s website if there is an accurate
summary or short description of coverage that includes policy limits and
exclusions or the ability to opt out of the coverage;

(4) extend the effective date of the bill from 90 to
180 days after the bill’s enactment; and

(5) make certain technical changes.

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