Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 338 (2022GS)

Sponsor

Rep. Hawkins, J.

Final action

Governor Signed 3/24/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• establishes the scope of the Travel Insurance Act;
• enacts provisions regarding the premium tax on a travel insurance premium;
• enacts provisions regarding travel protection plans;
• enacts provisions regarding sales practices for travel insurance;
• enacts provisions regarding travel administrators;
• establishes classification for travel insurance;
• permits an insurer to establish standards for travel insurance under certain conditions;
• grants rulemaking authority; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

TRAVEL INSURANCE AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jon Hawkins
Senate Sponsor: 
 Michael K. McKell
LONG TITLE
General Description:
This bill amends and enact provisions related to travel insurance.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ establishes the scope of the Travel Insurance Act;
▸ enacts provisions regarding the premium tax on a travel insurance premium;
▸ enacts provisions regarding travel protection plans;
▸ enacts provisions regarding sales practices for travel insurance;
▸ enacts provisions regarding travel administrators;
▸ establishes classification for travel insurance;
▸ permits an insurer to establish standards for travel insurance under certain
conditions;
▸ grants rulemaking authority; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
31A-23a-902
, as enacted by Laws of Utah 2014, Chapter 277
31A-23a-905
, as enacted by Laws of Utah 2014, Chapter 277
59-9-101
, as last amended by Laws of Utah 2017, Chapters 28, 168, and 363
ENACTS:
31A-23a-902.1
, Utah Code Annotated 1953
31A-23a-908
, Utah Code Annotated 1953
31A-23a-909
, Utah Code Annotated 1953
31A-23a-910
, Utah Code Annotated 1953
31A-23a-911
, Utah Code Annotated 1953
31A-23a-912
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
31A-23a-902
 is amended to read:
31A-23a-902.
Definitions.
As used in this part, unless the context requires otherwise:
(1) "Aggregator site" means a website that provides access to information regarding
insurance products from more than one insurer, including product and insurer information, for
use in comparison shopping.
(2) "Blanket travel insurance" means a travel insurance policy that:
(a) an insurer issues to an eligible group; and
(b) covers:
(i) a specific class of persons defined in the policy; and
(ii) all members of the eligible group without a separate charge to an individual
member of the eligible group.
(3) "Cancellation fee waiver" means a contractual agreement that:
(a) is between a supplier of a travel assistance service and the supplier's customer; and
(b) waives a non-refundable cancellation fee provision of the supplier's underlying
travel contract, with or without regard to:
(i) the reason for the cancellation; or
(ii) the form of reimbursement.
(4) (a) "Eligible group" means a group of two or more persons who:
(i) are engaged in a common enterprise; or
(ii) have an economic, educational, or social affinity or relationship.
(b) "Eligible group" includes:
(i) an entity engaged in the business of providing travel or a travel service in which,
with regard to the particular travel or travel service or type of travel or travelers, all members or
customers of the group have common exposure to risk attendant to that travel, including:
(A) a tour operator;
(B) a lodging provider;
(C) a vacation property owner;
(D) a hotel or resort;
(E) a travel club;
(F) a travel agency;
(G) a property manager;
(H) a cultural exchange program;
(I) a common carrier; and
(J) the operator, owner, or lessor of a means of transportation of passengers, including
an airline, a cruise line, a railroad, a steamship company, and a public bus carrier;
(ii) a college, school, or other institution of learning, covering students, teachers,
employees, or volunteers;
(iii) an employer covering employees, volunteers, contractors, a board of directors,
dependents, or guests;
(iv) a sports team, camp, or a sponsor of a sports team or camp, covering participants,
members, campers, employees, officials, supervisors, or volunteers;
(v) a religious, charitable, recreational, educational, or civic organization, or a branch
of a religious, charitable, recreational, educational, or civic organization, covering members,
participants, or volunteers;
(vi) a financial institution, a financial institution vendor, or a parent holding company,
trustee, or agent of or designated by a financial institution or a financial institution vendor,
covering accountholders, credit card holders, debtors, guarantors, or purchasers;
(vii) an incorporated or unincorporated association, including a labor union, that:
(A) has a common interest, constitution, and bylaws;
(B) is organized and maintained in good faith for a purpose other than to cover
members or participants of the association; and
(C) covers members of the association;
(viii) an entertainment production company covering participants, volunteers, audience
members, contestants, or workers;
(ix) a volunteer fire department, ambulance, rescue, police, or court or a volunteer first
aid, civil defense, or other volunteer group similar to first aid or civil defense, covering
members, participants, or volunteers;
(x) a preschool, a daycare institution for children or adults, or a senior citizen club,
covering attendees or participants;
(xi) an automobile or truck rental or leasing company:
(A) covering individuals who may become renters, lessees, or passengers depending on
the travel status of the individual on a rented or leased vehicle; and
(B) if the common carrier, operator, owner or lessor of the means of transportation, or
the automobile or truck rental or leasing company is the policyholder; and
(xii) a group not described in Subsections (4)(b)(i) through (xi), if the commissioner
determines that:
(A) the members of the group are engaged in a common enterprise, or have an
economic, educational, or social affinity or relationship; and
(B) issuance of the policy would not be contrary to the public interest.
(5) "Fulfillment material" means documentation that:
(a) is sent to the purchaser of a travel protection plan;
(b) confirms the purchase of the travel protection plan; and
(c) provides the travel protection plan's coverage and assistance details.
(6) "Group travel insurance" means travel insurance issued to an eligible group,
covering each certificate holder in the eligible group.
[
(1)
] 
(7)
 "Limited lines travel insurance producer" means one of the following
designated by an insurer as the travel insurance supervising entity as provided in Subsection
31A-23a-905
(4):
(a) a licensed managing general agent or third party administrator; or
(b) a licensed insurance producer, including a limited lines producer.
[
(2)
] 
(8)
 "Offer and disseminate" means:
(a) providing general information, including a description of the coverage and price;
(b) processing an application;
(c) collecting a premium; and
(d) performing activities that the state permits to be done by a person who is not
licensed.
(9) (a) "Travel administrator" means a person who, in connection with travel insurance,
directly or indirectly:
(i) underwrites;
(ii) collects a charge, collateral, or a premium from a resident of this state; or
(iii) adjusts or settles a claim on a resident of this state.
(b) "Travel administrator" does not include a person whose action that would otherwise
cause the person to be considered a travel administrator is among the following:
(i) a person working for a travel administrator to the extent that the person's activities
are subject to the supervision and control of the travel administrator;
(ii) a travel retailer that, in accordance with this part:
(A) offers and disseminates travel insurance; and
(B) is registered under the license of a limited lines travel insurance producer;
(iii) an individual adjusting or settling claims:
(A) in the normal course of that individual's practice or employment as an attorney; and
(B) who does not collect a charge or premium in connection with insurance coverage;
or
(iv) a business entity that is affiliated with a licensed insurer while acting as a travel
administrator for the direct and assumed insurance business of an affiliated insurer.
(10) (a) "Travel assistance service" means a service:
(i) for which the consumer is not indemnified based on a fortuitous event;
(ii) where providing the service does not result in transfer or shifting of risk that would
constitute the business of insurance; and
(iii) that is furnished in connection with planned travel.
(b) "Travel assistance service" includes:
(i) a security advisory;
(ii) destination information;
(iii) a vaccination and immunization information service;
(iv) a travel reservation service;
(v) entertainment;
(vi) activity and event planning;
(vii) translation assistance;
(viii) emergency messaging;
(ix) an international legal or medical referral;
(x) medical case monitoring;
(xi) coordination of transportation arrangements;
(xii) emergency cash transfer assistance;
(xiii) medical prescription replacement assistance;
(xiv) passport and travel document replacement assistance;
(xv) lost luggage assistance; and
(xvi) a concierge service.
[
(3)
] 
(11)
 (a) "Travel insurance" means insurance coverage for personal risks incident
to planned travel, including:
(i) interruption or cancellation of a trip or event;
(ii) loss of baggage or personal effects;
(iii) damages to accommodations or rental vehicles; [
or
]
(iv) sickness, accident, disability, or death during travel[
.
]
;
(v) emergency evacuation;
(vi) repatriation of remains; or
(vii) a contractual obligation that indemnifies or pays a specified amount to the traveler
upon a determinable contingency related to travel.
(b) "Travel insurance" does not include a major medical plan that provides
comprehensive medical protection for a traveler with a trip lasting six months or longer,
including an individual working overseas or military personnel being deployed.
(12) "Travel protection plan" means a plan that provides:
(a) travel insurance;
(b) a travel assistance service; or
(c) a cancellation fee waiver.
[
(4)
] 
(13)
 "Travel retailer" means a business entity that
:
(a)
 makes, arranges, or offers 
a
 travel [
services
] 
service;
 and
(b)
 may offer and disseminate travel insurance as a service to [
its
] 
the entity's
customers on behalf of and under the direction of a limited lines travel insurance producer.
Section 2. Section 
31A-23a-902.1
 is enacted to read:
 31A-23a-902.1.
Scope.
(1) The requirements under this part:
(a) apply to travel insurance:
(i) that covers a resident of this state;
(ii) that is sold, solicited, negotiated, or offered in this state; and
(iii) for which policies and certificates are delivered or issued for delivery in this state;
and
(b) do not apply, except as expressly provided, to:
(i) a cancellation fee waiver; or
(ii) a travel assistance service.
(2) If there is a conflict between a provision of this part and another provision under
this title, this part governs.
Section 3. Section 
31A-23a-905
 is amended to read:
31A-23a-905.
Offering or disseminating travel insurance.
(1) A travel retailer offering or disseminating travel insurance shall make available to a
prospective purchaser a brochure or other written material that:
(a) provides the identity and contact information of the insurer and the limited lines
travel insurance producer;
(b) explains that the purchase of travel insurance is not required to purchase any other
product or service from the travel retailer; and
(c) explains that an unlicensed travel retailer is permitted to provide general
information about the insurance offered by the travel retailer, including a description of the
coverage and price, but is not qualified or authorized to
:
(i)
 answer 
a
 technical [
questions
] 
question
 about the terms and conditions of the
insurance [
offered by
] the travel retailer [
or to
] 
offers; or
(ii)
 evaluate the adequacy of the prospective purchaser's existing insurance coverage.
(2) A travel retailer's employee or authorized representative who is not licensed as an
insurance producer may not:
(a) evaluate or interpret the technical terms, benefits, and conditions of the offered
travel insurance coverage;
(b) evaluate or provide advice concerning a prospective purchaser's existing insurance
coverage; or
(c) hold the person out as a licensed insurer, licensed producer, or insurance expert.
(3) Notwithstanding any other provision of this chapter, a travel retailer whose
insurance-related activities, and [
those of its
] 
the activities of the travel retailer's
 employees and
authorized representatives, are limited to offering and disseminating travel insurance on behalf
of and under the direction of a limited lines travel insurance producer meeting the conditions
stated in this part, is authorized to do so and receive related compensation for services, upon
registration of the limited lines travel insurance producer as described in Subsection
31A-23a-904
(2).
(4) As the insurer designee, the limited lines travel insurance producer
:
(a)
 is responsible for the acts of the travel retailer
;
 and
(b)
 shall use responsible means to ensure compliance by the travel retailer under this
part.
(5) A person licensed in a general line of authority as an insurance producer is
authorized to sell, solicit, and negotiate travel insurance.
Section 4. Section 
31A-23a-908
 is enacted to read:
 31A-23a-908.
Travel protection plans.
A person may offer a travel protection plan for one price for the combined features that
the travel protection plan offers, if:
(1) the person ensures the travel protection plan:
(a) clearly discloses to the consumer, at or before the time of purchase, that the plan
includes:
(i) travel insurance;
(ii) a travel assistance service; or
(iii) a cancellation fee waiver; and
(b) provides information and an opportunity, at or before the time of purchase, for the
consumer to obtain additional information regarding the features and pricing of the travel
insurance, travel assistance service, and cancellation fee waiver, as applicable; and
(2) the fulfillment material for the travel protection plan:
(a) describes and delineates the travel insurance, travel assistance services, and
cancellation fee waiver in the travel protection plan;
(b) includes each travel insurance disclosure required under state law; and
(c) includes the contact information for each person providing a:
(i) travel assistance service; or
(ii) cancellation fee waiver.
Section 5. Section 
31A-23a-909
 is enacted to read:
 31A-23a-909.
Sales practices.
(1) As used in this section, "deliver" or "delivery" means:
(a) handing fulfillment material to a policyholder or certificate holder; or
(b) sending fulfillment material by mail or electronic means to a policyholder or
certificate holder.
(2) A person who offers or sells a travel insurance policy to a resident of this state
shall:
(a) ensure that each document the person provides to the consumer before the
consumer purchases the travel insurance, including sales material, advertising material, and
marketing material, is consistent with the purchased travel insurance policy, including each
form and rate filing;
(b) provide the consumer information and an opportunity to learn more about each
pre-existing condition exclusion the policy includes:
(i) before the consumer purchases the policy; and
(ii) in the travel protection plan's fulfillment materials; and
(c) after a consumer purchases a travel protection plan, provide each policyholder or
certificate holder as soon as practicable:
(i) the fulfillment materials; and
(ii) the information described in Subsection 
31A-23a-904
(1).
(3) (a) Except as provided in Subsection (3)(b), a policyholder or certificate holder may
cancel a policy or certificate for a full refund of the travel protection plan price during the
period that:
(i) begins the day on which the consumer purchases the policy or certificate; and
(ii) ends no earlier than:
(A) if the travel protection plan's fulfillment materials are delivered to the policyholder
or certificate holder by mail, 15 days after the day on which the mail is postmarked; or
(B) if the travel protection plan's fulfillment materials are delivered by means other
than mail, 10 days after the day on which the delivery occurs.
(b) A policyholder or certificate holder may not cancel a policy or certificate as
described in Subsection (3)(a) if an insured under the policy or certificate:
(i) begins a trip covered under the travel insurance coverage; or
(ii) files a claim under the travel insurance coverage.
(4) (a) An unfair trade practice under Section 
31A-23a-402
 includes:
(i) offering or selling a travel insurance policy that could never result in payment of a
claim for an insured under the policy; or
(ii) marketing blanket travel insurance coverage as free of charge.
(b) It is not an unfair trade practice under Section 
31A-23a-402
 to market travel
insurance directly to a consumer through an insurer's website or through an aggregator site, if:
(i) an accurate summary or short description of coverage is provided on the website;
and
(ii) the consumer has access to the full provisions of the policy through electronic
means.
(c) If a consumer's destination jurisdiction requires insurance coverage and the
consumer is provided proof of the requirement at the time of purchase, it is not an unfair trade
practice under Section 
31A-23a-402
 to require that the consumer choose between the following
options as a condition of purchasing a trip or travel package:
(i) purchasing the coverage required by the destination jurisdiction through the travel
retailer or limited lines travel insurance producer supplying the trip or travel package; or
(ii) agreeing to obtain and provide proof of coverage that meets the destination
jurisdiction's requirements before departure.
(5) (a) A person offering, soliciting, or negotiating travel insurance or a travel
protection plan may not offer or sell the travel insurance or travel protection plan on an
individual or group basis by using a negative option or an opt out provision.
(b) For purposes of Subsection (5)(a), a negative option or opt out provision occurs
when a consumer is required to take an affirmative action to deselect coverage, including
unchecking a box on an electronic form, when the consumer purchases a trip.
Section 6. Section 
31A-23a-910
 is enacted to read:
 31A-23a-910.
Travel administrators.
(1) A person may not act as or represent that the person is a travel administrator for
travel insurance unless the person:
(a) is an insurance producer acting within the scope of the producer's license;
(b) is licensed as a managing general agent in accordance with Part 6, Managing
General Agents; or
(c) is licensed as a third party administrator in accordance with Chapter 25, Third Party
Administrators.
(2) An insurer is responsible for:
(a) an act of a travel administrator administering travel insurance the insurer
underwrites; and
(b) ensuring that the travel administrator maintains all books and records relevant to
the insurer.
(3) A travel administrator shall make the books and records described in Subsection
(2)(b) available to the commissioner upon the commissioner's request.
Section 7. Section 
31A-23a-911
 is enacted to read:
 31A-23a-911.
Classification of travel insurance -- Standards -- Status.
(1) An insurer shall classify and file travel insurance under an inland marine line of
insurance.
(2) An insurer may:
(a) issue travel insurance as an individual, group, or blanket policy; or
(b) develop eligibility and underwriting standards for travel insurance based on travel
protection plans designed for individual or identified marketing or distribution channels, if the
standards also meet underwriting standards for inland marine insurance.
(3) Under this part, the following are not insurance:
(a) a cancellation fee waiver; and
(b) a travel assistance service.
Section 8. Section 
31A-23a-912
 is enacted to read:
 31A-23a-912.
Rulemaking.
The commissioner may make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, necessary to implement the provisions of this part.
Section 9. Section 
59-9-101
 is amended to read:
59-9-101.
Tax basis -- Rates -- Exemptions -- Rate reductions.
(1) (a) Except as provided in Subsection (1)(b), (1)(d), or (5), an admitted insurer shall
pay to the commission on or before March 31 in each year, a tax of 2-1/4% of the total
premiums received by it during the preceding calendar year from insurance covering property
or risks located in this state.
(b) This Subsection (1) does not apply to:
(i) workers' compensation insurance, assessed under Subsection (2);
(ii) title insurance premiums taxed under Subsection (3);
(iii) annuity considerations;
(iv) insurance premiums paid by an institution within the state system of higher
education as specified in Section 
53B-1-102
; and
(v) ocean marine insurance.
(c) The taxable premium under this Subsection (1) shall be reduced by:
(i) the premiums returned or credited to policyholders on direct business subject to tax
in this state;
(ii) the premiums received for reinsurance of property or risks located in this state; and
(iii) the dividends, including premium reduction benefits maturing within the year:
(A) paid or credited to policyholders in this state; or
(B) applied in abatement or reduction of premiums due during the preceding calendar
year.
(d) (i) For purposes of this Subsection (1)(d):
(A) "Utah variable life insurance premium" means an insurance premium paid:
(I) by:
(Aa) a corporation; or
(Bb) a trust established or funded by a corporation; and
(II) for variable life insurance covering risks located within the state.
(B) "Variable life insurance" means an insurance policy that provides for life
insurance, the amount or duration of which varies according to the investment experience of
one or more separate accounts that are established and maintained by the insurer pursuant to
Title 31A, Insurance Code.
(ii) Notwithstanding Subsection (1)(a), beginning on January 1, 2006, the tax on that
portion of the total premiums subject to a tax under Subsection (1)(a) that is a Utah variable
life insurance premium shall be calculated as follows:
(A) 2-1/4% of the first $100,000 of Utah variable life insurance premiums:
(I) paid for each variable life insurance policy; and
(II) received by the admitted insurer in the preceding calendar year; and
(B).08% of the Utah variable life insurance premiums that exceed $100,000:
(I) paid for the policy described in Subsection (1)(d)(ii)(A); and
(II) received by the admitted insurer in the preceding calendar year.
(2) (a) An admitted insurer writing workers' compensation insurance in this state shall
pay to the tax commission, on or before March 31 in each year, a premium assessment on the
basis of the total workers' compensation premium income received by the insurer from workers'
compensation insurance in this state during the preceding calendar year as follows:
(i) on or before December 31, 2010, an amount of equal to or greater than 1%, but
equal to or less than 5.75% of the total workers' compensation premium income described in
this Subsection (2);
(ii) on and after January 1, 2011, but on or before December 31, 2022, an amount of
equal to or greater than 1%, but equal to or less than 4.25% of the total workers' compensation
premium income described in this Subsection (2); and
(iii) on and after January 1, 2023, an amount equal to 1.25% of the total workers'
compensation premium income described in this Subsection (2).
(b) Total workers' compensation premium income means the net written premium as
calculated before any premium reduction for any insured employer's deductible, retention, or
reimbursement amounts and also those amounts equivalent to premiums as provided in Section
34A-2-202
.
(c) The percentage of premium assessment applicable for a calendar year shall be
determined by the Labor Commission under Subsection (2)(d). The total premium income
shall be reduced in the same manner as provided in Subsections (1)(c)(i) and (1)(c)(ii), but not
as provided in Subsection (1)(c)(iii). The commission shall promptly remit from the premium
assessment collected under this Subsection (2):
(i) income to the state treasurer for credit to the Employers' Reinsurance Fund created
under Subsection 
34A-2-702
(1) as follows:
(A) on or before December 31, 2009, an amount of up to 5% of the total workers'
compensation premium income;
(B) on and after January 1, 2010, but on or before December 31, 2010, an amount of up
to 4.5% of the total workers' compensation premium income;
(C) on and after January 1, 2011, but on or before December 31, 2022, an amount of up
to 3% of the total workers' compensation premium income; and
(D) on and after January 1, 2023, 0% of the total workers' compensation premium
income;
(ii) an amount equal to .25% of the total workers' compensation premium income to
the state treasurer for credit to the Workplace Safety Account created by Section 
34A-2-701
;
(iii) an amount of up to .5% and any remaining assessed percentage of the total
workers' compensation premium income to the state treasurer for credit to the Uninsured
Employers' Fund created under Section 
34A-2-704
; and
(iv) beginning on January 1, 2010, .5% of the total workers' compensation premium
income to the state treasurer for credit to the Industrial Accident Restricted Account created in
Section 
34A-2-705
.
(d) (i) The Labor Commission shall determine the amount of the premium assessment
for each year on or before each October 15 of the preceding year. The Labor Commission shall
make this determination following a public hearing. The determination shall be based upon the
recommendations of a qualified actuary.
(ii) The actuary shall recommend a premium assessment rate sufficient to provide
payments of benefits and expenses from the Employers' Reinsurance Fund and to project a
funded condition with assets greater than liabilities by no later than June 30, 2025.
(iii) The actuary shall recommend a premium assessment rate sufficient to provide
payments of benefits and expenses from the Uninsured Employers' Fund and to maintain it at a
funded condition with assets equal to or greater than liabilities.
(iv) At the end of each fiscal year the minimum approximate assets in the Employers'
Reinsurance Fund shall be $5,000,000 which amount shall be adjusted each year beginning in
1990 by multiplying by the ratio that the total workers' compensation premium income for the
preceding calendar year bears to the total workers' compensation premium income for the
calendar year 1988.
(v) The requirements of Subsection (2)(d)(iv) cease when the future annual
disbursements from the Employers' Reinsurance Fund are projected to be less than the
calculations of the corresponding future minimum required assets. The Labor Commission
shall, after a public hearing, determine if the future annual disbursements are less than the
corresponding future minimum required assets from projections provided by the actuary.
(vi) At the end of each fiscal year the minimum approximate assets in the Uninsured
Employers' Fund shall be $2,000,000, which amount shall be adjusted each year beginning in
1990 by multiplying by the ratio that the total workers' compensation premium income for the
preceding calendar year bears to the total workers' compensation premium income for the
calendar year 1988.
(e) A premium assessment that is to be transferred into the General Fund may be
collected on premiums received from Utah public agencies.
(3) An admitted insurer writing title insurance in this state shall pay to the commission,
on or before March 31 in each year, a tax of .45% of the total premium received by either the
insurer or by its agents during the preceding calendar year from title insurance concerning
property located in this state. In calculating this tax, "premium" includes the charges made to
an insured under or to an applicant for a policy or contract of title insurance for:
(a) the assumption by the title insurer of the risks assumed by the issuance of the policy
or contract of title insurance; and
(b) abstracting title, title searching, examining title, or determining the insurability of
title, and every other activity, exclusive of escrow, settlement, or closing charges, whether
denominated premium or otherwise, made by a title insurer, an agent of a title insurer, a title
insurance producer, or any of them.
(4) Beginning July 1, 1986, a former county mutual and a former mutual benefit
association shall pay the premium tax or assessment due under this chapter. Premiums
received after July 1, 1986, shall be considered in determining the tax or assessment.
(5) The following insurers are not subject to the premium tax on health care insurance
that would otherwise be applicable under Subsection (1):
(a) an insurer licensed under Title 31A, Chapter 5, Domestic Stock and Mutual
Insurance Corporations;
(b) an insurer licensed under Title 31A, Chapter 7, Nonprofit Health Service Insurance
Corporations;
(c) an insurer licensed under Title 31A, Chapter 8, Health Maintenance Organizations
and Limited Health Plans;
(d) an insurer licensed under Title 31A, Chapter 9, Insurance Fraternals;
(e) an insurer licensed under Title 31A, Chapter 11, Motor Clubs; and
(f) an insurer licensed under Title 31A, Chapter 14, Foreign Insurers.
(6) (a) As used in this Subsection (6):
(i) "Cancellation fee waiver" means the same as that term is defined in Section
31A-23a-902
.
(ii) "Primary certificate holder" means an individual who elects and purchases travel
insurance under a group policy.
(iii) "Primary policyholder" means an individual who elects and purchases individual
travel insurance.
(iv) "Travel assistance service" means the same as that term is defined in Section
31A-23a-902
.
(v) "Travel insurance" means the same as that term is defined in Section 
31A-23a-902
.
(b) A travel insurer shall:
(i) pay a premium tax required under Subsection (1) on a travel insurance premium
that:
(A) an individual primary policyholder pays, if the policyholder is a resident of this
state;
(B) a primary certificate holder pays, if the certificate holder is a resident of this state
and elects coverage under a group travel insurance policy; or
(C) subject to any apportionment rules that apply to the insurer across multiple taxing
jurisdictions or permit the insurer to allocate the premium on an apportioned basis in a
reasonable and equitable manner across multiple jurisdictions, a blanket travel insurance
policyholder pays for eligible blanket group members, if the policyholder is a resident in this
state, has the policyholder's principal place of business in this state, or has the principal place
of business of an affiliate or subsidiary that has purchased blanket travel insurance in this state;
(ii) document the state of residence or principal place of business of each policyholder
and certificate holder; and
(iii) report as a premium only the amount allocable to travel insurance and not an
amount received for:
(A) a cancellation fee waiver; or
(B) a travel assistance service.
[
(6)
] 
(7)
 A captive insurer, as provided in Section 
31A-3-304
, that pays a fee imposed
under Section 
31A-3-304
 is not subject to the premium tax under this section.
[
(7)
] 
(8)
 An insurer issuing multiple policies to an insured may not artificially allocate
the premiums among the policies for purposes of reducing the aggregate premium tax or
assessment applicable to the policies.
[
(8)
] 
(9)
 The retaliatory provisions of Title 31A, Chapter 3, Department Funding, Fees,
and Taxes, apply to the tax or assessment imposed under this chapter.
Section 10. 
Effective date.
This bill takes effect on May 4, 2022, with the exception of Section 
59-9-101
 which
takes effect on January 1, 2023.