McKeon, Gopal Bill to Regulate Travel Insurance in New Jersey Passes Senate

TRENTON – The Senate passed legislation sponsored by Senators John McKeon and Vin Gopal that would create a comprehensive regulatory framework for travel insurance in New Jersey. The bill, S-2783, known as the “Travel Insurance Act,” aims to enhance consumer protection and streamline the sale and administration of travel insurance products.

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 are fully informed about coverage terms and claims processes.

“This bill brings much-needed clarity and protection to New Jersey’s travel insurance market,” said Senator McKeon (D-Essex/Morris). “By establishing clear rules for the sale and administration of travel insurance, we are protecting consumers and making sure they understand what they’re purchasing.”

The legislation also outlines how travel insurance policies should be marketed and sold, including mandatory disclosures and requirements for travel 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,” said Senator Gopal (D-Monmouth). “This will help foster a competitive marketplace while safeguarding consumer rights.”

This bill also includes provisions to regulate the collection of premium taxes on travel insurance and to prevent unfair trade practices, such as misleading advertising or mandatory opt-out options for consumers.

The bill was passed in a 39-0 vote.