10 Things You Should Know About Travel Insurance Line of Authority
What is a Travel Insurance Line of Authority?
A travel insurance line of authority (LOA) is a license allowing a person or a company to provide, solicit, or negotiate travel insurance policies. This classification differs from other insurance licenses, such as life, health, or property/casualty.
Who Needs a Travel Insurance LOA?
Usually, everyone who offers travel insurance—including travel agents, agencies, websites, and online tools—needs a travel insurance LOA. While certain states might exempt anyone employed under a licensed agency, the agency and a designated responsible producer (DRP) still need the LOA.
Variations in Licensing Requirements Across States.
Travel insurance licensing is not under federal control. Every state has different criteria, which complicates national sales. Some states have specialized travel insurance LOAs, others combine it with other lines, and others are not obligated.
Licensing Travel Retailers.
"Travel retailers," companies providing travel-related services combined with insurance, can fall under specific rules. They might run under a licensed producer's authority instead of requiring personal licensing. Still, statements about not being qualified insurance experts are typically required.
Navigating Non-Resident Licensing.
Travel insurance sales to citizens of another state sometimes call for a non-resident license in that state. While reciprocity exists for several lines of insurance, travel insurance can be more complicated. States known to enforce non-resident licensing laws aggressively include Texas, Washington, and New York.
Understanding the Licensing Process.
Depending on the state, getting a travel insurance LOA typically requires a written application, fees, and maybe training or tests. Some jurisdictions have procedures; others use services like Sircon or NIPR for applications. Generally speaking, agencies need a DRP appointed with a current travel LOA.
Limited Lines Travel Insurance Licenses.
A few states grant particular "limited lines" licenses for travel insurance. Their application procedures are usually more straightforward than those of the main lines of insurance.
Regulatory Bodies Involved.
Several groups influence travel insurance laws. To promote the sector, the U.S. Travel Insurance Association (UStiA) Model Acts developed by the National Conference of Insurance Legislators (NCOIL) and the National Association of Insurance Commissioners (NAIC) are available for states to adopt.
Regulatory Updates and Resources.
Legal requirements are subject to change. Current information is available from state insurance departments, NAIC, and NCOIL websites. As of May 2024, the UStiA noted 36 states using variations of the NAIC methodology.
Importance of Compliance.
Operating without the required LOA can result in fines. Knowledge of the rules in every state you sell is crucial for maintaining corporate integrity and complying with them.
| State | License Required | Exam Required | Pre-Licensing Education Required | Training Required | Other Requirements/Notes |
|---|---|---|---|---|---|
| Arizona | Yes, Travel LOA specifically listed | Yes, for resident producers | No | Yes, for travel retailers | Non-resident licenses may be available through reciprocity. |
| California | Yes, Limited Lines Travel Insurance Agent License | Yes | Yes | Yes, for all employees transacting travel insurance | Specific disclosures and certifications required for Travel Retailers and Limited Lines Travel Insurance Agents. Business entity license available. Fees and filing information specified. |
| Colorado | Yes, Limited Lines Travel Insurance | Yes, unless exempt. | Yes, 50 hours | No | Paper application may be required in some instances. |
| Florida | Yes, Limited Lines Travel Insurance Agent license required. | Yes | Yes, 60 hours | Yes, insurer provided training is required. | Specific requirements for Business Entities, Travel Retailers, including Designated Responsible Producer. Disclosure requirements for online sales and specific rules for "Travel Protection Plans". |
| Indiana | Yes, Limited Lines Travel Insurance Producer license required. | Yes | Yes, 20 hours | Yes, insurer provided training is required. | Specific requirements for business entity licensing and designation of responsible employee. Fees specified. |
| Iowa | Yes | Yes, for resident producers | No | Yes, for travel retailers' employees and authorized representatives | Application through NIPR. Fees and processing times specified. Limited lines travel insurance producer license available. Travel retailers must register with a licensed producer and adhere to specific requirements. |
| Massachusetts | Yes, Travel & Baggage Limited Line of Authority | Yes, for resident producers | No | Yes, for travel retailers' employees and authorized representatives | Specific procedures for adding LOA to existing license. Fees for duplicate license specified. Non-resident process via NIPR PDB. Limited lines travel insurance producer license available. Specific requirements for business entities and designated responsible producers. Travel retailers can offer and disseminate travel insurance under specified conditions. |
| North Dakota | Yes, Travel/Baggage Limited Line of Authority | Yes | No | Yes, insurer provided training is required | Application via NIPR or paper. Business entity licensing requires a designated principal producer. |
| Texas | Yes, Specialty Travel Insurance License for agencies and agents. | Yes | No, unless applying for a temporary license | Yes, by agency and insurance company | Application via Sircon. Specific application forms and fees. No temporary or emergency licenses available. |
| Washington | Yes, Travel LOA specifically listed | No, for travel-only license | No | No | Specific instructions for adding to or obtaining new licenses. Designated Responsible Licensed Person (DRLP) requirement for business entities. Fees specified. Exception for certain agency employees. |
