Bill Description: Senate Bill 1151 would create a new regulatory structure to control the selling and marketing of travel insurance.
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Does it create, expand, or enlarge any agency, board, program, function, or activity of government? Conversely, does it eliminate or curtail the size or scope of government?
Senate Bill 1151 would create Chapter 45, Title 41, Idaho Code, titled the "Idaho Travel Insurance Act." This act would regulate the selling and marketing of travel insurance.
This act creates a new regulatory structure, which is an expansion of government.
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Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?
The bill would impose new regulations on those who sell or market travel insurance. Constraints would apply to "sales practices" and "marketing practices" and other activities. Regulations would also be added regarding "fulfillment materials" and a variety of mandated disclosures.
The bill would also indirectly regulate travel retailers, limiting them to offering travel insurance "on behalf of and under the direction of a limited lines travel insurance producer meeting the conditions set forth in chapter 45, title 41, Idaho Code."
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Does it increase barriers to entry into the market? Examples include occupational licensure, the minimum wage, and restrictions on home businesses. Conversely, does it remove barriers to entry into the market?
The bill would stipulate that "no person may act as a limited lines travel insurance producer or travel retailer unless properly licensed or registered, respectively."
It would also say "no person shall act or represent itself as a travel administrator for travel insurance in this state unless that person is a licensed property and casualty insurance producer in this state for activities permitted under that producer license; or holds a valid managing general agent license in this state."
Licensing and registration mandates are government-created barriers to market participation.
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Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
The bill would require a travel insurer to "pay a premium tax, as provided in section 41-402, Idaho Code, on travel insurance premiums."
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Does it directly or indirectly create or increase penalties for victimless crimes or non-restorative penalties for non-violent crimes? Conversely, does it eliminate or decrease penalties for victimless crimes or non-restorative penalties for non-violent crimes?
The bill says, "The grounds for suspension and revocation and the penalties applicable to insurance producers set forth in sections 41-1016 and 41-1026, Idaho Code, shall apply to the limited lines travel insurance producers and travel retailers."
Such penalties are not currently applicable to those who sell or market travel insurance.
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