The New Jersey Senate passed legislation that would create a comprehensive regulatory framework for travel insurance in the Garden State.
S-2783, known as the “Travel Insurance Act,” aims to enhance consumer protection and streamline the sale and administration of travel insurance products. Lawmakers in the state Senate voted 39-0 to advance the legislation.
Under the bill, 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 bill establishes licensing requirements for travel insurance producers and mandates transparency in the sale of travel insurance, ensuring that consumers know coverage terms and claims processes.
The legislation requires mandatory disclosures and requires travel insurers to clearly explain exclusions, claims processes, and the components of any bundled travel protection plans. It also includes provisions to regulate the collection of premium travel insurance taxes and prevent unfair trade practices, such as misleading advertising or mandatory consumer opt-out options.
State Sens. John McKeon, D-Essex/Morris, and Vin Gopal, D-Monmouth, sponsored the measure.
