Committee Hears NAIC‑based Travel Insurance Bill; OIC and Industry Cite Remaining Technical Issues
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Summary
House Bill 2087 would codify travel insurance regulation (producer licensing, retailer registration, sales practices) based on NAIC model law; supporters say it standardizes consumer protections and increases choice, while OIC flagged adjuster‑licensing and accountability concerns and the Attorney General’s office urged preservation of anti‑discrimination law.
Lawmakers on Jan. 23 received a multi‑stakeholder briefing and public testimony on House Bill 2087, a measure to enact a Washington Travel Insurance Act modeled on the National Association of Insurance Commissioners (NAIC) approach to travel insurance regulation.
Committee staff Peter Clodfelter summarized the bill's main provisions: definitions of travel insurance, licensing a limited‑lines travel insurance producer, registration of travel retailers, creation of a travel administrator category, certain exemptions from insurance adjuster licensing, a prohibition on negative‑option/opt‑out sales practices, and rules on classification of travel insurance for rates and forms (inland marine or accident and health lines).
Representative Ryu, prime sponsor, said the bill is intended to expand consumer access to more affordable and uniform travel insurance products and that she is working on amendments to ensure compliance with federal child‑support requirements and state consumer‑protection law. Chiyo Saturn of the Office of the Insurance Commissioner described the bill as a compromise reflecting years of negotiation but flagged a remaining concern about allowing claim adjustment by unlicensed parties and urged clearer accountability so insurers remain responsible for claim adjustment.
Industry witnesses — including Jean Leonard of the U.S. Travel Insurance Association and Duke de Haas of Allianz — said they support a model that creates uniform rules across states and that many companies operating nationally want consistent frameworks. Nick Fielden of the Attorney General's Office recommended that the bill explicitly preserve Washington's anti‑discrimination and consumer protection laws, citing a 2024 consent decree related to discriminatory travel insurance practices.
Committee members pressed witnesses on adjuster licensing exemptions, consumer disclosures, enforcement, and how the bill would protect consumers who buy products from out‑of‑state sellers or retailers; staff and industry answered with descriptions of existing licensing exemptions and negotiated disclosure and enforcement provisions. The committee accepted written testimony from a witness who could not appear live and moved into the work session without taking committee action on HB 2087.