Idaho Travel Insurance Act: New Regulatory Framework for Travel Insurance

House Bill 644 proposes a comprehensive regulatory framework for the sale and marketing of travel insurance in Idaho, under the new "Idaho Travel Insurance Act." Similar to Senate Bill 1151 (2025), this legislation seeks to standardize guidelines impacting market participants, including travel insurance providers, underwriters, and retailers. These regulatory compliance requirements aim to streamline market operations while ensuring consumer protection.

The bill introduces specific criteria for sales and marketing practices, mandating compliance with requirements related to "fulfillment materials" and necessary disclosures. By enforcing these regulations, the legislation aligns the travel insurance offerings with limited lines travel insurance producers under Chapter 45, Title 41 of the Idaho Code. This approach ensures that all market participants adhere to a unified set of industry standards.

Entities wishing to participate in the travel insurance market must meet new licensing and registration requirements. Only licensed limited lines travel insurance producers or travel retailers can operate within this industry. Additionally, individuals acting as travel administrators must hold a property and casualty insurance producer license or a managing general agent license to maintain compliance with state regulations.

The bill mandates financial obligations, requiring travel insurers to remit premium taxes on issued travel insurance policies under section 41-402 of the Idaho Code. House Bill 644 also specifies penalties for non-compliance, aligning with the disciplinary measures applicable to other insurance producers under sections 41-1016 and 41-1026 of the Idaho Code. These provisions enhance the regulatory framework, impacting the travel insurance sector's risk management strategies and governance.

This proposed legislative action signifies a major shift in the operational landscape for the travel insurance industry in Idaho, promoting a standardized approach to regulatory compliance. By ensuring adherence to these regulations, the bill aims to deliver a more consistent and transparent travel insurance market that benefits both providers and consumers.