SSB 6248
SignedSenate
Travel insurance
Addressing travel insurance.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill creates a new legal framework for selling travel insurance in Washington, defining what counts as insurance versus non-insurance services, requiring licensing and registration for sellers, mandating clear consumer disclosures, and establishing premium tax and marketing rules. It does not change existing health or life insurance rules, but specifically addresses how travel insurance can be sold and regulated in the state.
- Creates a new ‘Washington Travel Insurance Act’ (Chapter 48.43 RCW) that establishes a dedicated legal framework for selling and regulating travel insurance in the state.
- Defines key terms including ‘travel insurance’, ‘travel assistance services’ (non-insurance services like lost luggage help or translation), and ‘cancellation fee waivers’ (non-insurance contractual fee waivers), clarifying that only travel insurance is regulated as insurance.
- Requires travel retailers (e.g., travel agencies, tour operators) to be registered with and supervised by a licensed limited lines travel insurance producer, and prohibits unlicensed staff from interpreting policy terms or advising on existing coverage.
- Mandates clear disclosures before purchase (e.g., coverage details, claim process, cancellation rights), including a 15-day (mail) or 10-day (electronic) cooling-off period for full refunds, and bans ‘negative option’ sales (e.g., pre-checked boxes for coverage).
- Classifies travel insurance as an inland marine line of insurance (with optional accident/health filing for health-related coverages), sets premium tax rules, and prohibits marketing blanket policies as ‘free’ or selling policies that cannot pay claims.
Who is affected
- Travel insurance companies — Travel insurance companies (insurers) must comply with new licensing, rate filing, and disclosure rules, and must pay premium taxes on policies sold to Washington residents.
- Travel retailers (e.g., tour operators, travel agencies, rental car companies) — Must be licensed as limited lines travel insurance producers or registered as travel retailers to sell or market travel insurance in Washington, and must follow specific training, disclosure, and recordkeeping requirements.
- Washington residents purchasing travel insurance — Must receive clear disclosures before purchase, have a cooling-off period to cancel for a full refund, and be protected from being sold unnecessary or misleading coverage.
- Travel administrators (third-party administrators of travel insurance) — Must be licensed as property and casualty producers to act as travel administrators, and are responsible for the conduct of their agents and recordkeeping.
Pro/Con Analysis
Potential Benefits (5)
Explicitly excludes major medical plans for trips over six months from travel insurance, clarifying that long-term expatriate health coverage must be purchased separately under appropriate licensing—this prevents consumers from being sold inadequate travel insurance when they need comprehensive health coverage.
consumer protectionRef: Sec. 2(13)(b)Requires travel retailers to disclose that travel insurance is optional and not required to purchase other services—this directly combats high-pressure sales tactics common in the travel industry.
consumer protectionRef: Sec. 3(2)(c) and Sec. 3(3)(b)Distinguishes travel assistance services (e.g., lost luggage help, translation) from insurance, preventing consumers from conflating non-indemnity services with risk-transfer coverage and setting clear expectations about what they’re buying.
consumer protectionRef: Sec. 2(12)Requires disclosure of whether travel insurance is primary or secondary to other coverage—this helps consumers avoid gaps or overlaps in coverage and reduces claim denials due to misaligned coverage layers.
consumer protectionRef: Sec. 6(3)(d)Allows the commissioner to approve additional coverages (e.g., trip delay, rental car damage) on a case-by-case basis, enabling the framework to adapt to emerging consumer needs without legislative action.
consumer protectionRef: Sec. 2(13)(a)(vii)
Potential Concerns (5)
Mandates a 15-day (mail) or 10-day (electronic) cooling-off period for full refunds of travel insurance, and bans 'negative option' sales (e.g., pre-checked boxes for coverage). This gives consumers clear, standardized time to reconsider and cancel coverage without penalty.
consumer protectionRef: Sec. 6(3)(c)Requires clear disclosures of coverage details, claim processes, and cancellation rights before purchase, and prohibits unlicensed staff from interpreting policy terms or advising on existing coverage. This reduces confusion and misrepresentation at point of sale.
consumer protectionRef: Sec. 3(2)(a) and Sec. 3(4)Prohibits marketing blanket travel insurance as 'free'—a practice that could mislead consumers into thinking they are receiving coverage at no cost when it may be bundled into a trip price or funded through other means.
consumer protectionRef: Sec. 6(5)Bans negative option sales (e.g., pre-checked boxes for coverage) during trip purchases, protecting consumers from being charged for unwanted insurance without affirmative consent.
consumer protectionRef: Sec. 6(4)Allows travel retailers to require consumers to either purchase required destination insurance through them or provide proof of equivalent coverage—this protects consumers from being stranded at borders or denied boarding where insurance is mandatory, but also limits choice in some cases.
consumer protectionRef: Sec. 6(6)
Who Is Most Affected
Travel insurance companies will face new licensing, rate filing, and premium tax obligations, increasing compliance costs. However, the new legal clarity may reduce regulatory uncertainty and expand market legitimacy.
Travel retailers (e.g., tour operators, rental car companies) must register and ensure staff training, adding administrative burden. But they gain legal authorization to sell insurance under supervision, potentially increasing revenue streams.
Washington residents gain stronger consumer protections, cooling-off rights, and clearer disclosures—reducing overreach and misrepresentation. However, some may face slightly higher upfront prices if retailers pass on compliance costs.
Third-party administrators (travel administrators) must hold property and casualty licenses, raising barriers to entry. But the exemption from separate travel insurance licensing streamlines compliance for licensed producers.