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Committee passes NAIC‑based travel‑insurance bill to tighten sales and disclosures
Summary
The committee approved SB 399, which adopts the NAIC model for travel insurance, clarifies permissible sales practices, requires affirmative opt‑in disclosures and sets premium‑tax calculation rules; sponsors said the insurance department reviewed the measure with no objections.
The Senate Insurance & Commerce Committee passed SB 399, a measure adopting the National Association of Insurance Commissioners (NAIC) model framework for travel insurance, after sponsors and counsel described the bill's consumer protections and uniform definitions.
Derek Smith of the Mitchell Williams law firm introduced the bill on behalf of its stakeholders and told the committee the NAIC model addresses inconsistent state approaches to travel insurance. The sponsor said SB 399 builds on existing agent licensing and clarifies how travel products packaged with services (24/7 assistance, luggage help, translators) should be treated, prohibits automatic inclusion of travel insurance in packages unless consumers affirmatively opt out, and adds specific consumer disclosures.
Committee members asked whether certain waiver or refund products sold by travel vendors are regulated as insurance and whether out‑of‑state sellers must be approved to offer products in Arkansas. Smith and the sponsor said traditional travel insurance products are regulated by the state where the policyholder resides and that companies offering regulated products should be approved to do business in Arkansas; the NAIC model aims to bring greater uniformity across states.
Senators noted premium taxes and consumer protection concerns and were referred to the insurance department for technical details; the sponsor said the department reviewed the bill and had no objection. The committee approved SB 399 by voice vote.
