NAIC adopts Travel Insurance Model Law

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Travel insurance

On 19 December 2018, the US-based National Association of Insurance Commissioners (NAIC) adopted a Travel Insurance Model Law, a significant step in creating a solid foundation for the industry to respond to consumer needs in a clear and compliant way. In late 2015, NAIC created a Travel Insurance Working Group to develop a travel insurance model law that addresses issues raised by the NAIC's Market Actions Working Group (MAWG).

The US Travel Insurance Association (UStiA) supported these efforts, including those by the National Council of Insurance Legislators (NCOIL) to develop a travel insurance model, which was adopted by NCOIL in March 2017 and was the basis for the NAIC model. The UStiA commented on the latest move: “[We] strongly believe that regulatory clarity and transparency, and the establishment of a regulatory level playing field with uniform standards, is critical for the travel insurance marketplace – consumers and industry alike. UStiA supports regulatory standardisation and consistency across the industry in an effort to ensure that consumers are protected.”