                                 CODE OF VIRGINIA

LICENSING AND REGISTRATION (§ 38.2-1888)

A. The Commission may issue a limited lines travel insurance agent license to an
individual or business entity that has filed with the Commission an application
for a limited lines travel insurance agent license in a form and manner
prescribed by the Commission. The limited lines travel insurance agent shall be
licensed to sell, solicit, or negotiate travel insurance through a licensed
insurer.

B. No person may act as a limited lines travel insurance agent or travel
retailer unless properly licensed or registered, respectively.

C. The grounds for the suspension or revocation of the license of and the
penalties applicable to resident insurance agents shall be applicable to limited
lines travel insurance agents and travel retailers.

D. A travel retailer may offer and disseminate travel insurance under the
license of a limited lines travel insurance agent only if the following
conditions are met:

   1. Any travel retailer offering or disseminating travel insurance shall make
   available to prospective purchasers brochures or other written materials that:
   				a. Provide the identity and contact information of the insurer and the
   limited lines travel insurance agent;
   				b. Explain that the purchase of travel insurance is not required in order
   to purchase any other product or service from the travel retailer; and
   				c. Explain that an unlicensed travel retailer is permitted to provide
   general information about the insurance offered by the travel retailer,
   including a description of the coverage and price, but is not qualified or
   authorized to answer technical questions about the terms and conditions of the
   insurance offered by the travel retailer or to evaluate the adequacy of the
   customer&#8217;s existing insurance coverage;

   2. The limited lines travel insurance agent or travel retailer provides to
   purchasers of travel insurance:
   				a. A description of the material terms or the actual material terms of the
   insurance coverage;
   				b. A description of the process for filing a claim;
   				c. A description of the review or cancellation process for the travel
   insurance policy; and
   				d. The identity and contact information of the insurer and limited lines
   travel insurance agent;

   3. At the time of licensure, the limited lines travel insurance agent shall
   establish and maintain a register on a form prescribed by the Commission of
   each travel retailer that offers travel insurance on the limited lines travel
   insurance agent&#8217;s behalf. The register shall be maintained and updated
   by the limited lines travel insurance agent and shall include the name,
   address, and contact information of the travel retailer and an officer or
   person who directs or controls the travel retailer&#8217;s operations, and the
   travel retailer&#8217;s Federal Tax Identification Number. The limited lines
   travel insurance agent shall submit such register to the Commission upon
   reasonable request. The limited lines travel insurance agent shall also
   certify that the travel retailer registered complies with 18 U.S.C. &#xA7;
   1033;

   4. The limited lines travel insurance agent has designated a DLP;

   5. The DLP, president, secretary, treasurer, and any other officer or person
   who directs or controls the limited lines travel insurance agent&#8217;s
   insurance operations complies with a background check or fingerprinting
   requirements applicable to insurance agents;

   6. The limited lines travel insurance agent has paid all applicable insurance
   agent licensing fees as set forth in this title; and

   7. The limited lines travel insurance agent requires each employee or
   authorized representative of the travel retailer whose duties include offering
   and disseminating travel insurance to receive a program of instruction or
   training, which may be subject to review by the Commission. The training
   material shall, at a minimum, contain instructions on the types of insurance
   offered, ethical sales practices, and required disclosures to prospective
   customers.

E. A travel retailer&#8217;s employee or authorized representative who is not
licensed as an insurance agent may not:

   1. Evaluate or interpret the technical terms, benefits, and conditions of the
   offered travel insurance coverage;

   2. Evaluate or provide advice concerning a prospective purchaser&#8217;s
   existing insurance coverage; or

   3. Hold himself or itself out as a licensed insurer, licensed agent, or
   insurance expert.

F. Notwithstanding any other provision of law, a travel retailer whose
insurance-related activities, and those of its employees or authorized
representatives, are limited to offering and disseminating travel insurance on
behalf of and under the direction and license of a limited lines travel
insurance agent meeting the conditions stated in this article is authorized to
conduct such activities and receive related compensation, upon registration by
the limited lines travel insurance agent as described in subdivision D 3. No
travel retailer employee or authorized representative may be compensated based
primarily on the number of customers who purchase travel insurance coverage;
however, nothing in this article shall prohibit payment of compensation to a
travel retailer or its employees or authorized representatives for activities
under the limited lines travel insurance agent&#8217;s license that are
incidental to the travel retailer&#8217;s or its employee&#8217;s or authorized
representative&#8217;s overall compensation.

G. As the insurer designee, the limited lines travel insurance agent and the
insurer (i) are responsible for the acts of a travel retailer who is not a
limited lines travel insurance agent and (ii) shall use reasonable means to
ensure compliance by the travel retailer with this article.

H. No person is authorized to sell, solicit, and negotiate travel insurance
unless licensed and appointed as a limited lines travel insurance agent.

HISTORY: 2013, c. 497; 2019, cc. 266, 346, 675; 2020, c. 225.