The New Jersey Senate Commerce Committee voted 5-0 to advance legislation creating a regulatory framework for travel insurance in the state.
Under S-2783, known as the “Travel Insurance Act,” travel insurance policies covering personal risks associated with planned travel, such as trip cancellations, baggage loss, and medical emergencies, would be clearly defined and subject to specific regulations.
The legislation also outlines how travel insurance policies should be marketed and sold. This includes mandatory disclosures and requirements for insurers to clearly explain exclusions, claims processes, and the components of any bundled travel protection plans.
“The Travel Insurance Act helps modernize the travel insurance industry and ensures that New Jersey consumers are protected with transparent and fair policies,” state Sen. Vin Gopal, D-Monmouth, said in a statement. “This will help foster a competitive marketplace while safeguarding consumer rights.”
This bill also includes provisions to regulate the collection of premium travel insurance taxes and prevent unfair trade practices, such as misleading advertising or mandatory opt-out options for consumers.