A new California law now allows travel agencies in California to offer travel insurance to consumers in the state without a state issued license by operating under the umbrella of their travel insurance provider’s license, according to the American Society of Travel Agents (ASTA) and the California Coalition of Travel Organizations (CCTO).
The two groups helped push through the new travel insurance regulation law, which became effective Jan. 1, 2013 and issued new guidance that supplements information provided by ASTA earlier.
By now, travel insurance providers should have reached out to all California travel agencies, as the new law requires travel insurance providers to submit a list of their insurance selling agents and to make certain declarations to California’s Department of Insurance.
Travel agencies that have not been contacted by their insurance providers should reach out to them, ASTA and the CCTO said.
"With regard to travel agents in California that offer travel insurance to consumers located in other states, there is no clear consensus amongst travel insurance providers or regulators regarding how travel agencies should fulfill their non-resident insurance licensing obligations," ASTA said.
ASTA said it is working with the U.S. Travel Insurance Association (UStiA) to seek more clarity on this issue, both from California as well as through ASTA's on-going lobbying efforts in other states.
"The lack of clarity as to how California travel agents should comply with non-resident licensing, as well as one large travel insurance provider’s recent nationwide restructure of its regulatory licensing program, clearly illustrates the need for overhauling the outdated, confusing and costly state-based web of regulations," ASTA said. "It also shows the need for the nationwide adoption of a standard and uniform regulatory regime."
UStiA and a coalition of its members, including ASTA, have been working to put a new standard into place across the country. To date, California, Florida, Kentucky, Minnesota, Idaho and Kansas have adopted a variation of this new standard, and efforts are underway to introduce legislation in another dozen states over the next few months, ASTA noted.
ASTA said will continue to work with the UStiA and individual travel insurance providers to seek clarity and a consensus as discrepancies arise. CCTO is a nonprofit state government relations coalition of national, state and regional associations and consortiums of travel agents and tour operators.
CCTO member organizations include individual California chapters of the ASTA, the United States Tour Operators Association, Cruise Lines International Association, Signature Travel, WESTA and Ensemble.
Visit www.ASTA.org