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Kentucky has joined a number of states in adopting an amended version of the National Association of Insurance Commissioners (NAIC) Travel Insurance Model Act as law. Kentucky House Bill 250 was signed into law by Gov. Andy Beshear on March 18, 2021 and will become effective 90 days after the adjournment of the state legislature, currently scheduled for March 30, 2021. Read the full text of the Kentucky H.B. 250.

The NAIC Travel Insurance Model Act contains regulatory requirements related to numerous aspects of the travel protection industry, including, among others:

  • Form and rate filing,
  • Sales and marketing,
  • Use of opt-out marketing plans,
  • Licensing and administrator requirements, and
  • The sale of Travel Protection Plans that incorporate insurance and non-insurance products and services such as cancellation waivers or assistance services.

It is critical to note that Kentucky H.B. 250 contains certain state-specific variations from the NAIC Travel Insurance Model Act. The Kentucky Department of Insurance intends to promulgate regulations in the near future to address implementation of H.B. 250. Industry participants with products falling within the applicable definition of travel insurance should review their business practices and the business practices of entities acting on their behalf or distributing their products to ensure that they are in compliance with applicable state regulatory requirements.1

If you would like additional information regarding H.B. 250, or assistance with regulatory issues/corrective measures, product development or compliance related to travel insurance, travel medical, travel protection plans, waivers, travel assistance services, licensing, including limited lines licensing, third party administration and claims, please contact Greg Mitchell, Nikki Parrott or Frost Brown Todd’s Insurance Regulation Practice Group.

1 Note: Certain types of products may fall outside the scope of the NAIC Travel Insurance Model Act and H.B. 250, and would be addressed by other applicable law, which should be carefully considered.