As we have periodically advised you over the past several years, the travel insurance industry has been subject to a Market Action Working Group investigation. Over the past several months, this investigation has led to Regulatory Settlement Agreements (RSAs) between the participating State regulators and the travel insurance carriers.

As a requirement of these settlement(s), we are providing a notification of the Regulatory Settlement Agreement from United States Fire Insurance Company (the insurer that underwrites your program) below.

Please note that while some of the elements of the settlement(s) will impact travel insurance products moving forward, neither you nor Trip Mate are a party to the settlement agreement(s) and there will be adequate time allowed to implement any required changes.

We will be reaching out to all of our clients over the next several weeks to discuss these issues with you so that whatever changes need to be made can be accomplished in an orderly fashion.

Please understand that these changes apply to the entire travel insurance industry and affect us all equally from a requirements standpoint. As you review the attached, please note:

• The regulatory settlement(s) were uniform in nature and therefore drafted to apply to the industry as a whole. The attached settlement agreement is not specific to your program, and elements of it may not even apply to or affect your program moving forward.
• Customers who have already purchased a travel insurance product under your program will continue to receive the benefits and services as purchased.
• Since this is an industry-wide settlement, your travel product distribution partners may receive a similar communication from multiple insurance carriers.

We will be reaching out to you soon, but as always, we are here to answer any questions you may have in the interim.

Trip Mate Client Relations Department
9225 Ward Parkway, Suite 200
Kansas City, MO 64114
Tel: 800 888 0432

MARKET CONDUCT EXAMINATION OF
TRAVEL INSURANCE PRACTICES
MAWG Travel Exam # 1503-20-TGT

IN THE MATTER OF
UNITED STATES FIRE INSURANCE COMPANY
NAIC #21113

To: Distribution Participants

From: United States Fire Insurance Company

Re: Regulatory Settlement Agreement

In 2014, several state insurance departments initiated market conduct examinations and investigations of the travel insurance industry generally. To resolve these examinations and investigations, participating states insurance departments have offered the opportunity for many of these insurance companies to enter into a Regulatory Settlement Agreement (the “Agreement”) without any admission of wrongdoing. In an effort to get this matter resolved, United States Fire Insurance Company (“US Fire” or “Company”) thought it in its best interest for itself and its partners and clients to enter into this Agreement.

All travel insurance companies have a duty to ensure that their distribution participants (including agents and administrators such as TPA’s and MGA’s) comply with all applicable laws and regulations for agents and administrators who are acting on the Company’s behalf. Pursuant to the terms of the Agreement, US Fire hereby notifies you of the following specific regulatory requirements:

• The solicitation and purchase of insurance is governed by applicable state law and anyone found violating state law may be subject to license revocation, administrative fines, civil penalties and other remedial actions provided for by applicable state law.
• No one may charge a separate fee for travel insurance in addition to the travel insurance premium or add any charges or fees for any of the Company's travel insurance products or related services without a separate written agreement with the insured, unless permitted by applicable law, and must comply with all state antirebating laws in connection with the sale of travel insurance.
• No one may offer or sell travel insurance policies using an opt-out marketing plan unless using opt-out for insurance is permitted by applicable law.
• No one may undertake to engage in underwriting or taking risk that would be considered the business of insurance, as defined by law, without a valid certificate of authority to do so, unless permitted by applicable law.
• No one may represent that travel insurance is compulsory, or require or mandate the sale of travel insurance as a condition for the purchase of a trip or travel package, unless permitted by applicable law.
• No one may sell in the same package or include or require in the sale of travel insurance the costs of non-insurance assistance services or travel cancellation fee waivers to consumers, or conversely sell in the same package or include or require in the sale of non-insurance assistance services or travel cancellation fee waivers, the cost of travel insurance, where prohibited by applicable law.

US Fire is required to work in good faith with its licensed and registered distribution participants to ensure that this Notice is provided to all distribution participants that offer or sell Company’s Travel Insurance. Please forward a copy of this Notice to all travel retailers and business entities offering or selling the Company’s Travel Insurance.

Please contact Trip Mate at 1-800-888-0432 if you have any questions.