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LRB-4242/1
EKL:skw&kjf
2021 - 2022 LEGISLATURE
August 4, 2021 - Introduced by Representatives Krug, Mursau and Subeck,
cosponsored by Senator Testin. Referred to Committee on Insurance.
AB491,1,3 1An Act to amend 76.60 and 628.02 (1) (b) 8.; to repeal and recreate 632.977;
2and to create 628.34 (15) and 629.01 (5) (g) of the statutes; relating to:
3regulating travel insurance.
Analysis by the Legislative Reference Bureau
This bill adopts the model travel insurance act that was approved by the
National Association of Insurance Commissioners in 2018.
Current law regulates travel insurance in several ways, including authorizing
the commissioner of insurance to issue a limited lines travel insurance producer
license to intermediaries and allowing travel retailers to offer and disseminate travel
insurance under a limited lines travel insurance firm license, subject to various
requirements imposed on the travel insurance producer and travel retailer. The bill
maintains these requirements and allows third-party administrators, managing
general agents, and “travel administrators,” defined below, to apply for a limited
lines travel insurance producer license. The bill also regulates travel insurance in
additional ways.
Travel administrators
The bill imposes requirements related to “travel administrators,” who are
defined as persons who directly or indirectly underwrite, collect charges or
premiums from, or adjust or settle claims of Wisconsin residents in connection with
travel insurance. The bill specifies that the term “travel administrator” does not
include an individual working for and subject to the supervision and control of a
travel administrator; an intermediary selling insurance or engaging in

administrative and claims related activities within the scope of the intermediary's
license; a travel retailer; an attorney acting in his or her professional capacity; or an
affiliated business entity of a licensed insurer. Under the bill, a person may only act
or represent the person as a travel administrator in Wisconsin if the person is a
licensed property and casualty insurance intermediary for activities permitted
under the license or the person holds a valid managing general agent or third-party
administrator license. The bill provides that an insurer is responsible for the acts
of a travel administrator who is administering travel insurance underwritten by the
insurer and requires that the insurer ensure that the travel administrator maintains
all relevant books and records. The bill also provides that travel administrators are
not subject to regulation as public adjusters.
Travel protection plans
The bill imposes requirements on travel protection plans, which are defined as
plans that provide any combination of travel insurance, travel assistance services,
and cancellation fee waivers. Under the bill, a travel protection plan may be offered
for one price for the combined items if there is sufficient disclosure of the items and
the plan's fulfillment materials contain specified information about the items.
Additionally, the bill provides that a person who cancels a travel protection plan that
includes travel insurance may receive a full refund if the insured has not started the
trip or filed a claim and the cancellation occurs no later than 15 days after delivery
of the fulfillment materials by postal mail or 10 days if delivered by other means,
unless the policy specifies a greater number of days.
Disclosures
The bill requires that all documents provided to a prospective purchaser be
consistent with the travel insurance policy, forms, endorsements, rate filings, and
certificate of insurance. Additionally, the bill requires that the policy and a travel
protection plan's fulfillment materials state whether the travel insurance is primary
or secondary to other coverage and that the policy information and fulfillment
materials be provided to a plan's purchaser as soon as practicable after the purchase.
For travel insurance policies that contain a preexisting condition exclusion, the bill
requires that a prospective purchaser be given information about the exclusion prior
to purchase and that information about the exclusion be included in fulfillment
materials.
Opt out provisions
The bill prohibits a person offering, soliciting, or negotiating travel insurance
or a travel protection plan on an individual or group basis from requiring the
purchaser to affirmatively deselect coverage when purchasing a trip.
Unfair marketing practices
The bill prohibits the marketing of blanket travel insurance as free and the
offering or selling of a travel insurance policy that could never result in payment of
any claims for any insured. The bill specifies that it is not an unfair marketing
practice to include a summary of policy coverage on an Internet site marketing travel
insurance so long as the summary is accurate and prospective purchasers have
access to the policy's full provisions through electronic means. The bill also specifies

that it is not an unfair marketing practice for a travel retailer or limited lines travel
insurance producer to require that a person purchasing a trip to a location that
requires insurance coverage choose, as a condition of purchasing the trip, between
purchasing the coverage through the travel retailer or producer or agreeing to obtain
and provide proof of coverage prior to departure.
Other provisions
The bill specifies that travel insurance may be offered as a blanket policy. The
bill also specifies that an intermediary licensed in a major line of authority is
authorized to sell, solicit, and negotiate travel insurance and that a property and
casualty insurance intermediary does not have to be appointed by an insurer to sell,
solicit, or negotiate travel insurance. Under the bill, travel insurance is generally
treated in a manner similar as marine insurance for purposes of rates and forms,
underwriting standards, and the state premium tax on foreign insurers. The bill
authorizes an insurer to establish and use eligibility and underwriting standards for
travel insurance based on travel protection plans designed for individual or
identified marketing or distribution channels so long as the standards meet any
requirements related to standards for inland marine insurance.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB491,1 1Section 1. 76.60 of the statutes is amended to read:
AB491,4,9 276.60 Fire, travel, and marine insurers; license fees. Every insurer doing
3a fire, travel, or marine insurance business, other than domestic insurers and
4insurers excepted under s. 76.61, shall pay to the state, in respect to travel or marine
5insurance a tax of 0.5 percent and in respect to fire insurance a tax of 2.375 percent
6on the amount of its gross premiums, as calculated under s. 76.62. In case any
7insurer discontinues business in this state and reinsures the whole or a part of its
8risks without making payment of this tax, the insurer accepting such reinsurance
9shall pay the tax. If several insurers make such reinsurance the tax shall be
10apportioned among the insurers in proportion to the original premiums upon the
11business in this state so reinsured by each such insurer. Upon the payment of the

1tax provided in this section, and the fees required by s. 601.31, such insurer may be
2licensed to transact its business until May 1 in the ensuing year, unless before then
3its license is revoked or forfeited according to law. In the case of travel insurance,
4the premiums subject to tax under this section are the premiums for travel
5insurance, as defined in s. 632.977 (1) (i), paid by an individual who is a resident of
6this state and who purchases travel insurance coverage under an individual or group
7policy or paid by a person who is a resident of or has a principal place of business in
8this state and who purchases blanket travel insurance, as defined in s. 632.977 (1)
9(a).
AB491,2 10Section 2. 628.02 (1) (b) 8. of the statutes is amended to read:
AB491,4,1311 628.02 (1) (b) 8. A travel retailer, as defined in s. 632.977 (1) (d) (k), or an
12employee or authorized representative of a travel retailer, that offers and
13disseminates, as defined in s. 632.977 (1) (am) (f), travel insurance under s. 632.977.
AB491,3 14Section 3. 628.34 (15) of the statutes is created to read:
AB491,4,1515 628.34 (15) Travel insurance. (a) In this subsection:
AB491,4,1616 1. “Blanket travel insurance” has the meaning given in s. 632.977 (1) (a).
AB491,4,1817 2. “Limited lines travel insurance producer” has the meaning given in s.
18632.977 (1) (e).
AB491,4,1919 3. “Travel insurance” has the meaning given in s. 632.977 (1) (i).
AB491,4,2020 4. “Travel retailer” has the meaning given in s. 632.977 (1) (k).
AB491,4,2121 (b) No person may market blanket travel insurance as free.
AB491,4,2322 (c) No person may offer or sell a travel insurance policy that could never result
23in payment of any claims for any insured under the policy.
AB491,5,424 (d) When travel insurance is marketed to a prospective purchaser through the
25Internet site of the insurer or an aggregator Internet site that provides access to

1information on insurance products from more than one insurer, the inclusion on the
2Internet site of a summary of the travel insurance policy's coverage does not violate
3this section if the summary is accurate and the prospective purchaser has access to
4the policy's full provisions through electronic means.
AB491,5,115 (e) When a person purchases a trip or travel package to a destination
6jurisdiction that requires insurance coverage, a travel retailer or limited lines travel
7insurance producer supplying the trip or travel package does not violate this section
8by requiring that the person, as a condition of purchasing the trip or travel package,
9choose between purchasing the required coverage through the travel retailer or
10limited lines travel insurance producer or agreeing to obtain and provide proof of the
11required coverage prior to departure.
AB491,4 12Section 4. 629.01 (5) (g) of the statutes is created to read:
AB491,5,1313 629.01 (5) (g) A travel administrator, as defined in s. 632.977 (1) (g).
AB491,5 14Section 5. 632.977 of the statutes is repealed and recreated to read:
AB491,5,15 15632.977 Travel insurance. (1) Definitions. In this section:
AB491,5,1816 (a) “Blanket travel insurance” means a policy of travel insurance issued to an
17eligible group that provides coverage for specific classes of persons defined in the
18policy, without a separate charge to any individual group member.
AB491,5,2219 (b) “Cancellation fee waiver” means a contractual agreement between a
20supplier of travel services and a purchaser of the services to waive a nonrefundable
21cancellation fee provision of the underlying travel contract with or without regard
22to the reason for the cancellation or form of reimbursement.
AB491,5,2523 (c) “Eligible group” means two or more persons who are engaged in a common
24enterprise or have an economic, educational, or social affinity or relationship,
25including any of the following:
AB491,6,9
11. An entity engaged in the business of providing travel or travel services if,
2with regard to a particular travel or type of travel or travelers, all members or
3customers of the entity have a common exposure to the risk attendant to such travel.
4For purposes of this subdivision, “entity engaged in the business of providing travel
5or travel services” includes a tour operator, lodging provider, vacation property
6owner, hotel, resort, travel club, travel agency, property manager, cultural exchange
7program, and common carrier or operator, owner, or lessor of a means of
8transportation of passengers, including an airline, cruise line, railroad, steamship
9company, and public bus carrier.
AB491,6,1110 2. A college, school, or other institution of learning, covering any group of
11students, teachers, employees, or volunteers.
AB491,6,1312 3. An employer covering any group of employees, volunteers, contractors, board
13of directors, dependents, or guests.
AB491,6,1514 4. A sports team, camp, or sponsor of a sports team or camp, covering any group
15of participants, members, campers, employees, officials, supervisors, or volunteers.
AB491,6,1816 5. A religious, charitable, recreational, educational, or civic organization,
17including a branch of any such organization, covering any group of members,
18participants, or volunteers.
AB491,6,2219 6. A financial institution or financial institution vendor, or a parent holding
20company, trustee, or agent of or designated by one or more financial institutions or
21financial institution vendors, including accountholders, credit card holders, debtors,
22guarantors, or purchasers.
AB491,7,223 7. An incorporated or unincorporated association, including a labor union, that
24has a common interest, constitution, and bylaws and is organized and maintained

1in good faith for purposes other than obtaining insurance for its members or
2participants, covering any group of its members or participants.
AB491,7,63 8. Subject to the commissioner's permitting the use of a trust, a trust or its
4trustees if the trust is established, created, or maintained for the benefit of the
5members, employees, or customers of one or more associations described in subd. 7.,
6covering any group of the members, employees, or customers.
AB491,7,87 9. An entertainment production company covering any group of participants,
8volunteers, audience members, contestants, or workers.
AB491,7,109 10. A volunteer fire department, ambulance, rescue, police, or court or a first
10aid, civil defense, or similar volunteer group.
AB491,7,1111 11. A preschool, daycare institution for children or adults, or senior citizen club.
AB491,7,1612 12. An automobile or truck rental or leasing company covering any group of
13individuals who may become renters, lessees, or passengers defined by their travel
14status on the rented or leased vehicles. The common carrier, the operator, owner or
15lessor of a means of transportation, or the automobile or truck rental or leasing
16company, is the policyholder under a policy to which this section applies.
AB491,7,2017 13. Any other group for which the commissioner has determined that the
18group's members are engaged in a common enterprise or have an economic,
19educational, or social affinity or relationship, and that issuance of a travel insurance
20policy to the group is not contrary to the public interest.
AB491,7,2321 (d) “Fulfillment materials” means documentation sent to a purchaser of a
22travel protection plan that confirms the purchase of the plan and provides
23information about the plan's coverage and travel assistance services.
AB491,7,2524 (e) “Limited lines travel insurance producer" means a person licensed under
25sub. (4) (a) to sell, solicit, or negotiate travel insurance.
AB491,8,3
1(f) “Offer and disseminate" means to provide general information, including a
2description of coverage and price, as well as to process applications, collect
3premiums, and perform other activities permitted by statute or rule.
AB491,8,74 (g) “Travel administrator” means a person who directly or indirectly
5underwrites, collects charges or premiums from, or adjusts or settles claims of
6residents of this state in connection with travel insurance, but does not include any
7of the following:
AB491,8,108 1. An individual working for a travel administrator to the extent that the
9individual's activities are subject to the supervision and control of the travel
10administrator.
AB491,8,1211 2. An intermediary selling insurance or engaged in administrative and claims
12related activities within the scope of the intermediary's license.
AB491,8,1313 3. A travel retailer.
AB491,8,1514 4. An individual adjusting or settling claims while acting in his or her
15professional capacity as an attorney.
AB491,8,1816 5. A business entity that is affiliated with a licensed insurer while acting as a
17travel administrator for the direct and assumed insurance business of the affiliated
18insurer.
AB491,8,2219 (h) 1. “Travel assistance services” means services that are furnished in
20connection with planned travel, the provision of which does not result in the transfer
21or shifting of risk that would constitute the business of insurance, and for which the
22purchaser is not indemnified based on a fortuitous event.
AB491,9,623 2. “Travel assistance services” includes security advisories, destination
24information, vaccination and immunization information services, travel reservation
25services, entertainment, activity and event planning, translation assistance,

1emergency messaging, international legal and medical referrals, medical case
2monitoring, coordination of transportation arrangements, emergency cash transfer
3assistance, medical prescription replacement assistance, passport and travel
4document replacement assistance, lost luggage assistance, concierge services, and
5any other service furnished in connection with planned travel that meets the
6conditions of subd. 1.
AB491,9,87 (i) 1. “Travel insurance" means limited lines insurance coverage for personal
8risks incident to planned travel, including any of the following:
AB491,9,99 a. Interruption or cancellation of a trip or event.
AB491,9,1010 b. Loss of baggage or personal effects.
AB491,9,1111 c. Damages to accommodations or rental vehicles.
AB491,9,1212 d. Sickness, accident, disability, or death occurring during travel.
AB491,9,1313 e. Emergency evacuation.
AB491,9,1414 f. Repatriation of remains.
AB491,9,1715 g. As determined by the commissioner, any other contractual obligation to
16indemnify or pay a specified amount upon a determinable contingency related to
17travel.
AB491,9,1818 2. “Travel insurance" does not include any of the following:
AB491,9,2019 a. Major medical plans that provide comprehensive medical protection for trips
20lasting longer than 6 months.
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