Michigan House Republicans
Travelers better protected under Webber plan approved by Michigan House
RELEASE|February 26, 2020

The Michigan House this week overwhelmingly approved state Rep. Michael Webber’s plan adopting protections for consumers who purchase travel insurance policies.

Webber, of Rochester Hills, said while the use of travel insurance is becoming more prevalent by travelers nationally and internationally, there’s not enough adequate safety measures in place to protect policyholders from bad actors in the insurance industry.

“In Michigan and across the country, we’re witnessing people opt into travel insurance policies that include many restrictions that make it nearly impossible to collect on a claim,” Webber said. “Whether they purchased the policy to be used for unexpected vacation cancellations, lost luggage and travel-related medical expenses, many Michiganders have become victims of bad actors within the insurance industry.”

The National Association of Insurance Commission (NAIC) has approved a model policy that sets a clear framework for the regulation of travel insurance and what travel insurance products must include. Webber said five states have adopted the NAIC model and that Michigan has the opportunity to become a national leader by following suit.

Included in Webber’s measure are a series of important consumer protections that travel insurance providers would be required to follow. These include:
• Ensuring that information and documentation conveyed to consumers accurately portrays what they are buying;
• Providing, in a timely manner, necessary insurance documentation following a purchase;
• Prohibiting predatory insurance practices for travel insurance products; and
• Setting standards for online travel insurance websites that offer travel insurance products.

“With this legislation, we’re making sure purchased travel insurance plans are actually providing the agreed-upon services and protections to Michigan families,” Webber said.

House Bill 4508 now moves to the Senate for consideration.


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