TRAVEL INSURANCE                                                                           H.B. 4508 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

House Bill 4508 (Substitute S-1 as reported)

Sponsor:  Representative Michael Webber

House Committee:  Insurance

                             Ways and Means

Senate Committee:  Insurance and Banking

CONTENT

The bill would add Chapter 12B (Travel Insurance) to the Insurance Code to do the following:

-- Allow travel insurance to be in the form of an individual, group, or blanket policy.

-- Require a travel insurer to pay a premium tax on travel insurance premiums paid by certain policyholders or certificate holders.

-- Allow travel protection plans to be offered for one price for the combined features that the travel protection plan offered in the State if certain conditions were met.

-- Require all documents provided to consumers before the purchase of travel insurance to be consistent with the travel insurance policy.

-- Require fulfillment materials to be provided to a policyholder or certificate holder as soon as practicable following the purchase of a travel protection plan.

-- All a policyholder or certificate holder to cancel a policy or certificate for a full refund of a travel protection plan price within certain time periods.

-- Specify that a person that offered travel insurance to Michigan residents would be subject to Chapter 20 (Unfair and Prohibited Trade Practices and Frauds) of the Code, and that if a conflict arose between Chapter 12B and other provisions of the Code, Chapter 12B would control.

-- Prescribe the scope of Chapter 12B.

The bill also would amend Chapter 12 of the Code to revise the definition of "travel insurance". 

MCL 500.1202 et al.                                               Legislative Analyst:  Stephen Jackson

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  11-9-20                                        Fiscal Analyst:  Elizabeth Raczkowski

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.