House panel advances travel insurance consumer protection bill

The Alaska House Transportation Committee advanced legislation Tuesday to update the state's travel insurance regulations, bringing Alaska in line with consumer protection standards already adopted by 42 other states.

House Bill 302 would modernize Alaska's travel insurance statutes, which have not been updated since 2013. The bill aligns with model legislation developed by the National Association of Insurance Commissioners and the National Council of Insurance Legislators. It includes consumer protections such as a free look period for refunds, standardized definitions, transparent pricing, and clear policy language.

Alaska's current travel insurance framework was established in 2013 through legislation that clarified license requirements and definitions consistent with national uniformity standards. That law created the travel insurance limited producer license and allowed unlicensed travel agents to sell travel insurance under licensed producer supervision. The 2013 framework has remained largely unchanged for more than a decade, even as 42 other states have adopted updated model legislation.

Representative Ashley Carrick, who sponsors the bill, said the legislation updates statutes to better align with national norms. Karen Alvarado, vice president of regulatory affairs for Crum Forster, testified in support of the measure, emphasizing its importance for Alaska.

"In Alaska, where travel often involves remote destinations, unpredictable weather, and limited access to immediate medical care, these protections are especially important," Alvarado said.

Alvarado told the committee that 42 states have enacted the model legislation, with Washington the most recent in March 2025. "We are very hopeful that Alaska will be state number 43," she said.

The bill standardizes definitions across the industry and includes what Alvarado described as strong consumer protections. Travel insurance covers unforeseen events that can disrupt travel, including medical emergencies, trip cancellations, lost luggage, and natural disasters.

Alvarado said the legislation creates a regulatory framework that benefits consumers, regulators, and industry participants by ensuring all players comply with specific requirements for travel insurance products. She told the committee her organization knows of no opposition to the bill.

A companion measure, Senate Bill 244, is advancing through the Senate with similar provisions. SB 244 includes technical updates such as replacing the term "wet marine" with "inland marine" to direct companies to the proper filing line for travel products. The Senate version repeals prior travel insurance provision AS 21.27.152 and adds new statutory sections 21.42.800 through 21.42.825 to define classification, producer roles, protection plans, sales practices, and administrator authority. SB 244 sets an effective date of January 1, 2027 and applies to contracts delivered or renewed on or after that date.