Alaska 2025-2026 Regular Session

Alaska Senate Bill SB132 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
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2		-	~~SB0132B~~ -1- ~~CSSB~~ 132~~(L&C)~~
	2	+	SB0132A -1- SB 132
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5		-	34-LS0415\H
	5	+	34-LS0415\G
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8	8
9	9
10		-	CS FOR SENATE BILL NO. 132(L&C)
	10	+
	11	+	SENATE BILL NO. 132
11	12
12	13		IN THE LEGISLATURE OF THE STATE OF ALASKA
13	14
14	15		THIRTY-FOURTH LEGISLATURE - FIRST SESSION
15	16
16	17		BY THE SENATE LABOR AND COMMERCE COMMITTEE
17	18
18		-	~~Offered~~: 4/7/25
19		-	Referred: Finance
	19	+	Introduced: 3/14/25
	20	+	Referred: Labor and Commerce, Finance
20	21
21		-	~~Sponsor(s): SENATE LABOR AND COMMERCE COMMITTEE~~
	22	+
22	23		A BILL
23	24
24	25		FOR AN ACT ENTITLED
25	26
26	27		"An Act relating to insurance; and providing for an effective date." 1
27	28		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 2
28	29		* Section 1. AS 12.10.020 is amended by adding a new subsection to read: 3
29	30		(d) Even if the general time limitation has expired, a prosecution for any 4
30	31		offense related to life insurance may be commenced within one year after discovery of 5
31	32		the offense by an aggrieved party or by a person who has legal capacity to represent an 6
32	33		aggrieved party or a legal duty to report the offense and who is not a party to the 7
33	34		offense, but in no case shall this provision extend the period of limitation otherwise 8
34	35		applicable by more than 20 years. 9
35	36		* Sec. 2. AS 21.07.030(a) is amended to read: 10
36	37		(a) If a health care insurer offers a health care insurance policy that provides 11
37	38		for coverage of medical care services only if the services are furnished through a 12
38	39		network of health care providers that have entered into a contract with the health care 13
39	40		insurer, the health care insurer shall also offer a non-network option to covered 14
40		-	persons at initial enrollment, as provided under (c) of this section. The non-network 15 34-LS0415\H
41		-	~~CSSB~~ 132~~(L&C)~~ -2- ~~SB0132B~~
	41	+	persons at initial enrollment, as provided under (c) of this section. The non-network 15 34-LS0415\G
	42	+	SB 132 -2- SB0132A
42	43		New Text Underlined [DELETED TEXT BRACKETED]
43	44
44	45		option may require that a covered person pay a higher deductible, copayment, or 1
45	46		premium for the plan if the higher deductible, copayment, or premium results from 2
46	47		increased costs caused by the use of a non-network provider. This subsection does not 3
47	48		apply to 4
48	49		(1) a covered person who is offered non-network coverage through 5
49	50		another health care insurance policy or through another health care insurer; or 6
50	51		(2) a health maintenance organization licensed under AS 21.86. 7
51	52		* Sec. 3. AS 21.07.030 is amended by adding a new subsection to read: 8
52	53		(i) A health care insurer that offers a health care insurance policy that provides 9
53	54		different levels of coverage for health care services based on network status and 10
54	55		performs utilization review shall include details on a prior authorization request form 11
55	56		on how a health care provider or covered person may request a benefit-level 12
56	57		exception. If the health care insurer approves the prior authorization, the insurer shall 13
57	58		detail whether the claim will be processed as a network or non-network claim. If the 14
58	59		benefit will be paid based on a non-network reimbursement level and a benefit-level 15
59	60		exception requires an application process separate from the prior authorization 16
60	61		process, the prior authorization must include instructions for requesting the benefit-17
61	62		level exception. In this subsection, a "benefit-level exception" means an exception to 18
62	63		medical care coverage where a health care insurer applies network health care benefit 19
63	64		levels to services received from an out-of-network health care provider or facility. 20
64	65		* Sec. 4. AS 21.09.200(g) is amended to read: 21
65	66		(g) An insurer shall file with the director or the director's designee an annual 22
66	67		audited financial report for the previous year by June 1 of each year [UNLESS, 23
67	68		UNDER A REGULATION ADOPTED BY THE DIRECTOR, THE DIRECTOR 24
68	69		GRANTS AN EXEMPTION BASED ON A FINDING THAT FILING AN 25
69	70		ANNUAL AUDITED FINANCIAL REPORT WOULD CONSTITUTE A 26
70	71		FINANCIAL OR ORGANIZATIONAL HARDSHIP ON THE INSURER. THE 27
71	72		FILING DATE FOR THE ANNUAL AUDITED FINANCIAL REPORT MAY BE 28
72	73		EXTENDED BY THE DIRECTOR UPON SHOWING THAT THE STANDARDS 29
73	74		ESTABLISHED BY REGULATION HAVE BEEN MET]. If the director gives the 30
74		-	insurer 90 days' advance notice, and for good cause, the director may require an 31 34-LS0415\H
75		-	~~SB0132B~~ -3- ~~CSSB~~ 132~~(L&C)~~
	75	+	insurer 90 days' advance notice, and for good cause, the director may require an 31 34-LS0415\G
	76	+	SB0132A -3- SB 132
76	77		New Text Underlined [DELETED TEXT BRACKETED]
77	78
78	79		insurer to file an audited financial report earlier than June 1 of each year. The annual 1
79	80		audited financial report must be prepared by a qualified independent certified public 2
80	81		accountant. An insurer shall notify the director of the certified public accountant 3
81	82		engaged to conduct the audit and issue the annual audited financial report. 4
82	83		* Sec. 5. AS 21.09.200 is amended by adding a new subsection to read: 5
83	84		(m) An insurer may apply to the director for an exemption from compliance 6
84	85		with a requirement of this section if compliance would cause the insurer to suffer a 7
85	86		financial or organizational hardship. The director may, in the director's discretion, 8
86	87		approve an exemption. If the director denies an insurer's application for exemption, the 9
87	88		insurer may, within 15 days after the date of the denial, submit a request in writing to 10
88	89		the director for a hearing as provided under AS 21.06.180 - 21.06.240. 11
89	90		* Sec. 6. AS 21.09.210(b) is amended to read: 12
90	91		(b) Each insurer, and each formerly authorized insurer with respect to 13
91	92		premiums written while an authorized insurer in this state, shall pay a tax on the total 14
92	93		direct premium written during the year ending on the preceding December 31 and paid 15
93	94		for the insurance of property or risks resident or located in the state [, OTHER THAN 16
94	95		WET MARINE AND TRANSPORTATION INSURANCE,] after deducting from the 17
95	96		total direct premium income the applicable cancellations, returned premiums, the 18
96	97		unabsorbed portion of any deposit premium, all policy dividends, unabsorbed 19
97	98		premiums refunded to policyholders, refunds, savings, savings coupons, and other 20
98	99		similar returns paid or credited to policyholders with respect to their policies. 21
99	100		Deductions may not be made of cash surrender value of policies. Considerations 22
100	101		received on annuity contracts are not included in the direct premium income and are 23
101	102		not subject to tax. The tax shall be paid to the director at least annually but not more 24
102	103		often than once each quarter on the dates specified by the director. The method of 25
103	104		payment must be by the electronic or other payment method specified by the director. 26
104	105		Except as provided under (m) of this section, the tax is computed at the rate of 27
105	106		(1) for domestic and foreign insurers, except hospital and medical 28
106	107		service corporations, 2.7 percent; 29
107	108		(2) for hospital and medical service corporations, six percent
108	109		of their 30
109	110		gross premiums less claims paid;
110		-	31 34-LS0415\H
111		-	~~CSSB~~ 132~~(L&C)~~ -4- ~~SB0132B~~
	111	+	31 34-LS0415\G
	112	+	SB 132 -4- SB0132A
112	113		New Text Underlined [DELETED TEXT BRACKETED]
113	114
114	115		(3) for wet marine and transportation insurance, three-quarters of 1
115	116		one percent. 2
116	117		* Sec. 7. AS 21.09.242(a) is amended to read: 3
117	118		(a) Each [AN] insurer and [, INCLUDING A] pharmacy benefits manager 4
118	119		shall, with respect to a medical assistance program [PROGRAMS] under AS 47.07, 5
119	120		[SHALL] cooperate with the Department of Health to 6
120	121		(1) provide, with respect to an individual who is eligible for or is 7
121	122		provided medical assistance under AS 47.07, at [ON] the request of the department, 8
122	123		information to determine during what period the individual or the individual's spouse 9
123	124		or dependents may be or may have been covered by the insurer and the nature of the 10
124	125		coverage that is or was provided by the insurer, including the name and address of the 11
125	126		insurer and the identifying number of the health care insurance plan; 12
126	127		(2) accept the department's right of recovery and the assignment to the 13
127	128		department of any right of an individual or other entity to payment from the party for 14
128	129		an item or service for which payment has been made under AS 47.07; 15
129	130		(3) respond within 60 days to any inquiry by the department regarding 16
130	131		a claim for payment for any health care item or service that is submitted not later than 17
131	132		three years after the date of the provision of the health care item or service; and 18
132	133		(4) agree not to deny a claim submitted by the department solely on the 19
133	134		basis of the date of submission of the claim, the type or format of the claim form, a 20
134	135		failure to obtain prior authorization, or a failure to present proper documentation at 21
135	136		the point-of-sale that is the basis of the claim if 22
136	137		(A) the claim is submitted by the department within the three-23
137	138		year period beginning on the date on which the item or service was furnished; 24
138	139		and 25
139	140		(B) any action by the department to enforce its rights with 26
140	141		respect to the claim is commenced within six years after the department's 27
141	142		submission of the claim. 28
142	143		* Sec. 8. AS 21.12.020(h) is amended to read: 29
143	144		(h) The director shall consider the list of reciprocal jurisdictions published 30
144		-	through the National Association of Insurance Commissioners committee process in 31 34-LS0415\H
145		-	~~SB0132B~~ -5- ~~CSSB~~ 132~~(L&C)~~
	145	+	through the National Association of Insurance Commissioners committee process in 31 34-LS0415\G
	146	+	SB0132A -5- SB 132
146	147		New Text Underlined [DELETED TEXT BRACKETED]
147	148
148	149		determining a reciprocal jurisdiction and has the discretion to defer to the list. The 1
149	150		director may approve a jurisdiction not on the list in accordance with criteria 2
150	151		developed under regulations adopted by the director. The director may remove a 3
151	152		jurisdiction from the list of reciprocal jurisdictions upon determination that the 4
152	153		jurisdiction no longer meets the requirements of a reciprocal jurisdiction in accordance 5
153	154		with a process set out in regulation by the director. Upon removal of a reciprocal 6
154	155		jurisdiction from the list, credit for reinsurance ceded to an assuming insurer that has a 7
155	156		home office or is domiciled in that jurisdiction shall be allowed if otherwise allowed 8
156	157		under this section. The director shall timely create and publish a list of assuming 9
157	158		insurers that have satisfied the conditions set out in this subsection and to which 10
158	159		cessions shall be granted credit in accordance with (a) of this section. The director 11
159	160		may add an assuming insurer to a list if a National Association of Insurance 12
160	161		Commissioners accredited jurisdiction has added the assuming insurer to a list of 13
161	162		assuming insurers or, if upon initial eligibility, the assuming insurer submits the 14
162	163		information to the director as required under (a)(6)(D) of this section and complies 15
163	164		with any additional requirements the director may impose by regulation. If the director 16
164	165		determines that an assuming insurer no longer meets one or more of the requirements 17
165	166		of (a)(6) of this section, the director may revoke or suspend the eligibility of the 18
166	167		assuming insurer under (a)(6) of this section in accordance with procedures set out in 19
167	168		regulation. While an assuming insurer's eligibility is suspended, a reinsurance 20
168	169		agreement issued, amended, or renewed after the effective date of the suspension does 21
169	170		not qualify for credit except to the extent that the assuming insurer's obligations under 22
170	171		the contract are secured in accordance with (c) of this section. If an assuming insurer's 23
171	172		eligibility is revoked, a credit for reinsurance may not be granted after the effective 24
172	173		date of the revocation with respect to any reinsurance agreement entered into by the 25
173	174		assuming insurer, including a reinsurance agreement entered into before the date of 26
174	175		revocation, except to the extent that the assuming insurer's obligations under the 27
175	176		contract are secured in a form acceptable to the director and consistent with (c) of this 28
176	177		section. Upon entry of an order of rehabilitation, liquidation, or conservation against 29
177	178		the ceding insurer, the supervising court may [SHALL] require an assuming insurer 30
178		-	under (a)(6) of this section to post 100 percent security for the benefit of the ceding 31 34-LS0415\H
179		-	~~CSSB~~ 132~~(L&C)~~ -6- ~~SB0132B~~
	179	+	under (a)(6) of this section to post 100 percent security for the benefit of the ceding 31 34-LS0415\G
	180	+	SB 132 -6- SB0132A
180	181		New Text Underlined [DELETED TEXT BRACKETED]
181	182
182	183		insurer or its estate. Nothing in this subsection shall limit or in any way alter the 1
183	184		capacity of parties to a reinsurance agreement to agree on requirements for security or 2
184	185		other terms in that reinsurance agreement consistent with this section. Credit under 3
185	186		(a)(6) of this section may be taken only for reinsurance agreements entered into, 4
186	187		renewed, or amended on or after the date the director has determined that the assuming 5
187	188		insurer is eligible for credit, and may not be taken for reinsurance of losses incurred or 6
188	189		reserves reported before that date. Credit under (a)(6) of this section may not apply to 7
189	190		reinsurance agreements entered into, to losses incurred, or to reserves posted before 8
190	191		application under (a)(6) of this section. 9
191	192		* Sec. 9. AS 21.12.020(i)(2) is amended to read: 10
192	193		(2) "reciprocal jurisdiction" means a jurisdiction that 11
193	194		(A) is not a United States jurisdiction that is subject to an in- 12
194	195		force covered agreement with the United States, each within its legal authority, 13
195	196		or in the case of a covered agreement between the United States and the 14
196	197		European Union, is a member state of the European Union; in this 15
197	198		subparagraph, "covered agreement" is an agreement entered into under 31 16
198	199		U.S.C. 313 - 314 (Dodd-Frank Wall Street Reform and Consumer Protection 17
199	200		Act) that is currently in effect or in a period of provisional application and 18
200	201		addresses the elimination, under specified conditions, of collateral 19
201	202		requirements as a condition for entering into any reinsurance agreement with a 20
202	203		ceding insurer domiciled in this state or for allowing the ceding insurer to 21
203	204		recognize credit for reinsurance; 22
204	205		(B) is a United States jurisdiction that meets the requirements 23
205	206		for accreditation under the National Association of Insurance Commissioners 24
206	207		financial standards and accreditation program; or 25
207	208		(C) is a qualified jurisdiction, as determined by the director 26
208	209		under (a)(5)(C) of this section, that is not otherwise described in (A) and (B) of 27
209	210		this paragraph and that meets certain additional requirements, consistent with 28
210	211		the terms and conditions of in-force covered agreements, as specified by the 29
211	212		director in regulation; 30
212		-	* Sec. 10. AS 21.18.112(e) is amended to read: 31 34-LS0415\H
213		-	~~SB0132B~~ -7- ~~CSSB~~ 132~~(L&C)~~
	213	+	* Sec. 10. AS 21.18.112(e) is amended to read: 31 34-LS0415\G
	214	+	SB0132A -7- SB 132
214	215		New Text Underlined [DELETED TEXT BRACKETED]
215	216
216	217		(e) An insurer shall establish reserves using a principle-based valuation that 1
217	218		meets the following conditions for policies or contracts as specified in the valuation 2
218	219		manual: 3
219	220		(1) quantify the benefits, guarantees, and funding associated with the 4
220	221		contracts and their risks at a level of conservatism that reflects conditions that include 5
221	222		unfavorable events that have a reasonable probability of occurring during the lifetime 6
222	223		of the contracts and, for policies or contracts with significant tail risk, that reflect 7
223	224		conditions appropriately adverse to quantify the tail risk; 8
224	225		(2) incorporate assumptions, risk analysis methods, and financial 9
225	226		models and management techniques that are consistent with, but not necessarily 10
226	227		identical to, those used in the insurer's overall risk assessment process while 11
227	228		recognizing potential differences in financial reporting structures and prescribed 12
228	229		assumptions or methods; 13
229	230		(3) incorporate assumptions that are derived in one of the following 14
230	231		manners: 15
231	232		(A) the assumptions are prescribed in the valuation manual; 16
232	233		(B) for assumptions that are not prescribed, the assumptions 17
233	234		shall be established using the insurer's available experience, to the extent it is 18
234	235		relevant and statistically credible; to the extent that data is not available, 19
235	236		relevant, or statistically credible, the assumptions shall be established using 20
236	237		other relevant or statistically credible experience; 21
237	238		(4) provide margins for uncertainty, including adverse deviation and 22
238	239		estimation error, so that the greater the uncertainty the larger the margin and resulting 23
239	240		reserve; 24
240	241		(5) for an insurer using a principle-based valuation for one or more 25
241	242		policies or contracts subject to this subsection as specified in the valuation manual, 26
242	243		(A) establish procedures for corporate governance and 27
243	244		oversight of the actuarial valuation function consistent with those described in 28
244	245		the valuation manual and a process for appropriate waiver or modification 29
245	246		of the established procedures; 30
246		-	(B) provide to the director an annual certification of the 31 34-LS0415\H
247		-	~~CSSB~~ 132~~(L&C)~~ -8- ~~SB0132B~~
	247	+	(B) provide to the director an annual certification of the 31 34-LS0415\G
	248	+	SB 132 -8- SB0132A
248	249		New Text Underlined [DELETED TEXT BRACKETED]
249	250
250	251		effectiveness of the internal controls with respect to the principle-based 1
251	252		valuation; the controls shall be designed to ensure that all material risks 2
252	253		inherent in the liabilities and associated assets subject to the valuation are 3
253	254		included in the valuation and that valuations are made in accordance with the 4
254	255		valuation manual; the certification shall be based on the controls in place as of 5
255	256		the end of the preceding calendar year; 6
256	257		(C) develop and file with the director upon request a principle-7
257	258		based valuation report that complies with standards prescribed in the valuation 8
258	259		manual; 9
259	260		(6) a principle-based valuation may include a prescribed formulaic 10
260	261		reserve component. 11
261	262		* Sec. 11. AS 21.18.900(12) is amended to read: 12
262	263		(12) "policyholder behavior" means a lapse, withdrawal, transfer, 13
263	264		deposit, premium payment, loan, annuitization, or election of a policy benefit by 14
264	265		the terms of a policy or contract, or another [AN] action of a policyholder, contract 15
265	266		holder, or another person with the right to elect options; "policyholder behavior" 16
266	267		does not include events of mortality or morbidity that result in a benefit 17
267	268		prescribed by the terms of a policy or contract; 18
268	269		* Sec. 12. AS 21.27.020(c) is amended to read: 19
269	270		(c) To qualify for issuance or renewal of a license as a firm insurance 20
270	271		producer, a firm managing general agent, a firm reinsurance intermediary broker, a 21
271	272		firm reinsurance intermediary manager, a firm surplus lines broker, or a firm 22
272	273		independent adjuster, an applicant or licensee shall 23
273	274		(1) comply with (b)(4) and (5) of this section; 24
274	275		(2) maintain a lawfully established place of business in this state, 25
275	276		except when licensed as a nonresident under AS 21.27.270; 26
276	277		(3) designate one or more compliance officers for the firm, except that 27
277	278		not more than one compliance officer may be designated for each line [CLASS] of 28
278	279		authority under AS 21.27.115; 29
279	280		(4) provide to the director documents necessary to verify the 30
280		-	information contained in or made in connection with the application; and 31 34-LS0415\H
281		-	~~SB0132B~~ -9- ~~CSSB~~ 132~~(L&C)~~
	281	+	information contained in or made in connection with the application; and 31 34-LS0415\G
	282	+	SB0132A -9- SB 132
282	283		New Text Underlined [DELETED TEXT BRACKETED]
283	284
284	285		(5) notify the director, in writing, not later than 30 days after a change 1
285	286		in the firm's compliance officer. 2
286	287		* Sec. 13. AS 21.27.020(f) is amended to read: 3
287	288		(f) The director may adopt regulations establishing additional education or 4
288	289		experience requirements for applicants, licensees, and continuing education providers 5
289	290		under this chapter upon due consideration of the availability and accessibility of 6
290	291		education and training opportunities in rural areas of the state. Regulations adopted 7
291	292		under this subsection are subject to the following provisions: 8
292	293		(1) additional educational or experience requirements may not apply to 9
293	294		a licensee who has been licensed by the division of insurance before January 1, 1980; 10
294	295		(2) a licensee shall complete at least 24 credit hours of approved 11
295	296		continuing education courses during each two-year license period; 12
296	297		(3) if a licensee has accumulated more credit hours than required under 13
297	298		(2) of this subsection by the end of the license period, a maximum of eight hours may 14
298	299		be carried over to meet the requirements of (2) of this subsection in the next license 15
299	300		period; 16
300	301		(4) a program or seminar may not be approved as an acceptable 17
301	302		continuing education program unless it is a formal program of learning that 18
302	303		contributes to the professional competence of the licensee; individual study programs 19
303	304		or correspondence courses may be used to fulfill continuing education requirements if 20
304	305		approved by the director; 21
305	306		(5) a nonresident licensee is exempt from the requirements of this 22
306	307		subsection, except for a nonresident independent adjuster who designates this 23
307	308		state as the adjuster's home state. 24
308	309		* Sec. 14. AS 21.27.025(a) is amended to read: 25
309	310		(a) A licensee shall notify the director in writing not later than 30 days after a 26
310	311		change in residence, place of business, legal name, fictitious name or alias, mailing 27
311	312		address, electronic mailing address, telephone number, or compliance officer. A 28
312	313		licensee shall report to the director in writing any administrative action taken against 29
313	314		the licensee by a governmental agency [OF ANOTHER STATE, BY A 30
314		-	GOVERNMENTAL AGENCY OF ANOTHER JURISDICTION,] or by a financial 31 34-LS0415\H
315		-	~~CSSB~~ 132~~(L&C)~~ -10- ~~SB0132B~~
	315	+	GOVERNMENTAL AGENCY OF ANOTHER JURISDICTION,] or by a financial 31 34-LS0415\G
	316	+	SB 132 -10- SB0132A
316	317		New Text Underlined [DELETED TEXT BRACKETED]
317	318
318	319		industry regulatory authority sanction or arbitration proceeding not later than 30 days 1
319	320		after the final disposition of the action. A licensee shall submit to the director the final 2
320	321		order and other relevant legal documents in the action. A licensee shall report to the 3
321	322		director in writing any criminal prosecution of the licensee in this or another state or 4
322	323		jurisdiction not later than 30 days after the date of filing of the criminal complaint, 5
323	324		indictment, information, or citation in the prosecution. The licensee shall submit to the 6
324	325		director a copy of the criminal complaint, calendaring order, and other relevant legal 7
325	326		documents in the prosecution. 8
326	327		* Sec. 15. AS 21.27.115 is amended to read: 9
327	328		Sec. 21.27.115. Lines of authority. If a person has met the applicable 10
328	329		requirements of AS 21.27.020 and 21.27.270, the director shall issue a license for one 11
329	330		or more of the following lines of authority: 12
330	331		(1) life insurance coverage on natural persons; in this paragraph, "life 13
331	332		insurance coverage" 14
332	333		(A) includes benefits of endowment and annuities; and 15
333	334		(B) may include benefits in the event of death or 16
334	335		dismemberment by accident and benefits for disability income; 17
335	336		(2) accidental and health or sickness insurance coverage for sickness, 18
336	337		bodily injury, or accidental death; in this paragraph, "accidental and health or 19
337	338		sickness insurance coverage" includes health insurance, as defined in 20
338	339		AS 21.12.050(a), and may include benefits for disability income; 21
339	340		(3) property insurance coverage for the direct or consequential loss for 22
340	341		damage to property of every kind; 23
341	342		(4) casualty insurance coverage against legal liability, including that 24
342	343		for death, injury, or disability or damage to real or personal property; in this 25
343	344		paragraph, "casualty insurance" includes surety insurance as defined in AS 21.12.080; 26
344	345		(5) variable life and variable annuity products insurance coverage; 27
345	346		(6) personal lines property and casualty insurance coverage sold to 28
346	347		individuals and families for primarily noncommercial purposes; 29
347	348		(7) limited lines credit insurance; 30
348		-	(8) [REPEALED 31 34-LS0415\H
349		-	~~SB0132B~~ -11- ~~CSSB~~ 132~~(L&C)~~
	349	+	(8) [REPEALED 31 34-LS0415\G
	350	+	SB0132A -11- SB 132
350	351		New Text Underlined [DELETED TEXT BRACKETED]
351	352
352	353		(9) REPEALED 1
353	354		(10)] any insurance for which a limited lines license may be issued 2
354	355		under AS 21.27.150. 3
355	356		* Sec. 16. AS 21.27.270(b) is amended to read: 4
356	357		(b) Unless the director denies or refuses to renew a license under 5
357	358		AS 21.27.410, the director shall issue a nonresident producer, limited lines, surplus 6
358	359		lines broker, managing general agent, reinsurance intermediary broker, independent 7
359	360		adjuster, or reinsurance intermediary manager license to a person who is not a 8
360	361		resident of this state if 9
361	362		(1) the person is currently licensed and is in good standing in the 10
362	363		person's home state; the director may verify the person's licensing status through the 11
363	364		producer licensing database records maintained by the National Association of 12
364	365		Insurance Commissioners or its affiliates or subsidiaries; 13
365	366		(2) the person has paid the fees required under AS 21.06.250 and has 14
366	367		submitted to the director 15
367	368		(A) the license application the person submitted to the person's 16
368	369		home state; or 17
369	370		(B) if the person is not a firm, a completed uniform application 18
370	371		or, if a firm, the uniform business entity application; and 19
371	372		(3) the person's home state awards nonresident producer, limited lines, 20
372	373		surplus lines broker, managing general agent, reinsurance intermediary broker, 21
373	374		independent adjuster, and reinsurance intermediary manager licenses to residents of 22
374	375		this state on the same basis as does this state. 23
375	376		* Sec. 17. AS 21.27.270(h) is amended to read: 24
376	377		(h) A nonresident applicant for an independent adjuster license who [ONLY 25
377	378		ADJUSTS CLAIMS RELATED TO PORTABLE ELECTRONICS INSURANCE 26
378	379		UNDER AS 21.36.515 AND WHO] is licensed as an independent adjuster and in 27
379	380		good standing in the applicant's home state does not have to meet the requirements of 28
380	381		AS 21.27.060 or 21.27.830 to be licensed under this section. [A RESIDENT OF 29
381	382		CANADA MAY NOT BE LICENSED AS AN INDEPENDENT ADJUSTER 30
382		-	UNDER THIS SECTION UNLESS THE APPLICANT HAS OBTAINED A 31 34-LS0415\H
383		-	~~CSSB~~ 132~~(L&C)~~ -12- ~~SB0132B~~
	383	+	UNDER THIS SECTION UNLESS THE APPLICANT HAS OBTAINED A 31 34-LS0415\G
	384	+	SB 132 -12- SB0132A
384	385		New Text Underlined [DELETED TEXT BRACKETED]
385	386
386	387		RESIDENT INDEPENDENT ADJUSTER LICENSE IN ANOTHER STATE OR 1
387	388		DECLARED ANOTHER STATE THE APPLICANT'S HOME STATE AND 2
388	389		OBTAINED AN INDEPENDENT ADJUSTER LICENSE IN THAT STATE.] 3
389	390		* Sec. 18. AS 21.27.270(i) is amended to read: 4
390	391		(i) If a nonresident independent [PORTABLE ELECTRONICS] adjuster 5
391	392		applicant's home state does not license independent adjusters, the independent 6
392	393		[PORTABLE ELECTRONICS] adjuster applicant may designate the applicant's home 7
393	394		state as any state in which the applicant is licensed in good standing. 8
394	395		* Sec. 19. AS 21.27.270 is amended by adding a new subsection to read: 9
395	396		(j) A nonresident applicant for issuance or renewal of an independent adjuster 10
396	397		license or firm independent adjuster license who designates this state as the applicant's 11
397	398		home state must qualify for licensure under AS 21.27.020 and apply for the issuance 12
398	399		or renewal of the license in accordance with AS 21.27.040. 13
399	400		* Sec. 20. AS 21.27.380(d) is amended to read: 14
400	401		(d) The director shall send [MAIL] a notice of license expiration stating the 15
401	402		reason for the expiration to a licensee at the licensee's most current electronic mail 16
402	403		address or mailing [LAST] address on record with the director. [THE DIRECTOR 17
403	404		SHALL OBTAIN A CERTIFICATE OF MAILING FROM THE UNITED STATES 18
404	405		POSTAL SERVICE.] 19
405	406		* Sec. 21. AS 21.27.630(d) is amended to read: 20
406	407		(d) A third-party administrator may not use a fictitious name or alias unless 21
407	408		the third-party administrator's [LICENSEE'S] legal name and fictitious name or 22
408	409		alias are on the registration. 23
409	410		* Sec. 22. AS 21.27.640(b) is amended to read: 24
410	411		(b) To qualify for issuance or renewal of a registration, an applicant or 25
411	412		registrant shall comply with this title, regulations adopted under AS 21.06.090, and 26
412	413		(1) be a trustworthy person; 27
413	414		(2) have active working experience in administrative functions that, in 28
414	415		the director's opinion, exhibits the ability to competently perform the administrative 29
415	416		functions of a third-party administrator; 30
416		-	(3) not have committed an act that is a cause for denial, nonrenewal, 31 34-LS0415\H
417		-	~~SB0132B~~ -13- ~~CSSB~~ 132~~(L&C)~~
	417	+	(3) not have committed an act that is a cause for denial, nonrenewal, 31 34-LS0415\G
	418	+	SB0132A -13- SB 132
418	419		New Text Underlined [DELETED TEXT BRACKETED]
419	420
420	421		suspension, or revocation of a registration or license in this state or another 1
421	422		jurisdiction; 2
422	423		(4) maintain a lawfully established place of business [AS 3
423	424		DESCRIBED IN AS 21.27.330] in this state, unless licensed as a nonresident under 4
424	425		AS 21.27.270; 5
425	426		(5) disclose to the director all owners, officers, directors, or partners, if 6
426	427		any; 7
427	428		(6) designate a compliance officer for the firm; 8
428	429		(7) provide in or with its application 9
429	430		(A) all basic organizational documents of the third-party 10
430	431		administrator, including articles of incorporation, articles of association, 11
431	432		partnership agreement, trade name certificate, trust agreement, shareholder 12
432	433		agreement, and other applicable documents and all endorsements to the 13
433	434		required documents; 14
434	435		(B) the bylaws, rules, regulations, or similar documents 15
435	436		regulating the internal affairs of the administrator; 16
436	437		(C) the names, mailing addresses, physical addresses, official 17
437	438		positions, and professional qualifications of persons who are responsible for 18
438	439		the conduct of affairs of the third-party administrator, including the members 19
439	440		of the board of directors, board of trustees, executive committee, or other 20
440	441		governing board or committee; the principal officers in the case of a 21
441	442		corporation, or the partners or members in the case of a partnership, limited 22
442	443		liability company, limited liability partnership, or association; shareholders 23
443	444		holding directly or indirectly 10 percent or more of the voting securities of the 24
444	445		third-party administrator; and any other person who exercises control or 25
445	446		influence over the affairs of the third-party administrator; 26
446	447		(D) certified financial statements for the preceding two years, 27
447	448		or for each year and partial year that the applicant has been in business if less 28
448	449		than two years, prepared by an independent certified public accountant 29
449	450		establishing that the applicant is solvent, that the applicant's system of 30
450		-	accounting, internal control, and procedure is operating effectively to provide 31 34-LS0415\H
451		-	~~CSSB~~ 132~~(L&C)~~ -14- ~~SB0132B~~
	451	+	accounting, internal control, and procedure is operating effectively to provide 31 34-LS0415\G
	452	+	SB 132 -14- SB0132A
452	453		New Text Underlined [DELETED TEXT BRACKETED]
453	454
454	455		reasonable assurance that money is promptly accounted for and paid to the 1
455	456		person entitled to the money, and any other information that the director may 2
456	457		require to review the current financial condition of the applicant; and 3
457	458		(E) a statement describing the business plan, including 4
458	459		information on staffing levels and activities proposed in this state and in other 5
459	460		jurisdictions and providing details establishing the third-party administrator's 6
460	461		capability for providing a sufficient number of experienced and qualified 7
461	462		personnel in the areas of claims handling, underwriting, and record keeping; 8
462	463		(8) provide to the director documents necessary to verify the 9
463	464		statements contained in or in connection with the application; and 10
464	465		(9) notify the director, in writing, not later than 30 days after 11
465	466		(A) a change in compliance officer, residence, place of 12
466	467		business, mailing address, or phone number; 13
467	468		(B) the final disposition of an administrative action taken 14
468	469		against the registrant by a governmental agency [OF ANOTHER STATE, BY 15
469	470		A GOVERNMENTAL AGENCY OF ANOTHER JURISDICTION,] or by a 16
470	471		financial industry regulatory authority sanction or arbitration proceeding; in 17
471	472		addition, a registrant shall submit to the director documents relating to the final 18
472	473		disposition on, including the final order and other relevant legal documents in, 19
473	474		the action; or 20
474	475		(C) a conviction of a misdemeanor or felony of the third-party 21
475	476		administrator, its officers, directors, partners, owners, or employees. 22
476	477		* Sec. 23. AS 21.27.990(8) is amended to read: 23
477	478		(8) "compliance officer" means a licensee designated for a specific line 24
478	479		[AND CLASS] of authority under AS 21.27.115 [THIS CHAPTER] who is 25
479	480		responsible for a firm's compliance with the insurance statutes and regulations of this 26
480	481		state; 27
481	482		* Sec. 24. AS 21.27.990(12) is amended to read: 28
482	483		(12) "home state," with respect to 29
483	484		(A) an insurance producer, means the District of Columbia or a 30
484		-	state or territory of the United States in which an insurance producer maintains 31 34-LS0415\H
485		-	~~SB0132B~~ -15- ~~CSSB~~ 132~~(L&C)~~
	485	+	state or territory of the United States in which an insurance producer maintains 31 34-LS0415\G
	486	+	SB0132A -15- SB 132
486	487		New Text Underlined [DELETED TEXT BRACKETED]
487	488
488	489		the producer's principal place of residence or principal place of business and is 1
489	490		licensed to act as an insurance producer; 2
490	491		(B) an independent [PORTABLE ELECTRONICS] adjuster, 3
491	492		means the District of Columbia or a state or territory of the United States in 4
492	493		which an independent [PORTABLE ELECTRONICS] adjuster maintains the 5
493	494		independent [PORTABLE ELECTRONICS ] adjuster's principal place of 6
494	495		residence or principal place of business and is licensed to act as an independent 7
495	496		adjuster or, if the state or territory of the United States of the independent 8
496	497		[PORTABLE ELECTRONICS] adjuster's principal place of residence or 9
497	498		principal place of business does not license independent adjusters, the state or 10
498	499		territory of the United States designated by the independent [PORTABLE 11
499	500		ELECTRONICS] adjuster where the independent [PORTABLE 12
500	501		ELECTRONICS] adjuster is licensed; 13
501	502		* Sec. 25. AS 21.27.990(13) is amended to read: 14
502	503		(13) "independent [PORTABLE ELECTRONICS] adjuster" means a 15
503	504		person [AN INDEPENDENT ADJUSTER] who investigates, negotiates, or settles 16
504	505		property, casualty, or workers' compensation claims for insurers or self-insurers 17
505	506		[COLLECTS, FURNISHES, OR ENTERS CLAIM INFORMATION FOR 18
506	507		PORTABLE ELECTRONICS INSUR ANCE ISSUED UNDER AS 21.36.515]; 19
507	508		* Sec. 26. AS 21.27.990(20) is amended to read: 20
508	509		(20) "limited lines" means those lines of insurance defined in 21
509	510		AS 21.27.150 [OR ANY OTHER LINE OF INSURANCE THAT THE DIRECTOR 22
510	511		DESIGNATES BY ORDER AS A LIMITED LINE]; 23
511	512		* Sec. 27. AS 21.33.055(d) is amended to read: 24
512	513		(d) On default of a nonadmitted insurer in the payment of the tax, the insured 25
513	514		shall pay the tax within 30 days after written notice from the director of the default by 26
514	515		the nonadmitted insurer. For wet marine and transportation insurance, a surplus 27
515	516		lines broker may pay the tax on behalf of the nonadmitted insurer or the insured. 28
516	517		If the tax prescribed by this section is not paid [BY THE NONADMITTED 29
517	518		INSURER] within the time stated [OR BY THE INSURED WITHIN THE TIME 30
518		-	STATED] after notice of default from the director [BY THE NONADMITTED 31 34-LS0415\H
519		-	~~CSSB~~ 132~~(L&C)~~ -16- ~~SB0132B~~
	519	+	STATED] after notice of default from the director [BY THE NONADMITTED 31 34-LS0415\G
	520	+	SB 132 -16- SB0132A
520	521		New Text Underlined [DELETED TEXT BRACKETED]
521	522
522	523		INSURER], the tax may be increased by 1
523	524		(1) a late payment fee of $1,000 or 10 percent of the tax due, 2
524	525		whichever is greater; 3
525	526		(2) interest at the rate of one percent a month or part of a month from 4
526	527		the date the payment was originally due to the date paid; and 5
527	528		(3) a penalty not to exceed $100 a day or 25 percent of the tax due, 6
528	529		whichever is greater, from the date the payment was due to the date paid. 7
529	530		* Sec. 28. AS 21.34.035 is amended to read: 8
530	531		Sec. 21.34.035. Health care insurance and disability insurance. (a) Except 9
531	532		for a multiple employer welfare arrangement, health care insurance and disability 10
532	533		insurance may be placed in and written by a nonadmitted insurer if 11
533	534		(1) the director finds it is in the best interest of the public and issues an 12
534	535		order to that effect; and 13
535	536		(2) the insurance is in compliance with this chapter. 14
536	537		(b) The rates and rating methods for health care insurance and disability 15
537	538		insurance placed and written under this section are subject to AS 21.51.405 and 16
538	539		AS 21.54.015. The surplus lines broker shall make the filings required under 17
539	540		AS 21.51.405 and AS 21.54.015 and maintain the records and accounts as required 18
540	541		under AS 21.87.230. 19
541	542		(c) Health care insurance and disability insurance may not be procured under 20
542	543		this chapter 21
543	544		(1) for the purpose of obtaining a lower premium rate than acceptable 22
544	545		by an authorized insurer; or 23
545	546		(2) for obtaining a competitive advantage. 24
546	547		(d) Health care insurance and disability insurance [INSURANCE] placed 25
547	548		in or written by a nonadmitted insurer and the activities of the surplus lines broker 26
548	549		relating to that transaction are subject to this title. 27
549	550		(e) In this section, 28
550	551		(1) "disability insurance" means disability insurance as defined in 29
551	552		AS 21.12.052 that is excess insurance or for individuals unable to obtain disability 30
552		-	insurance with any admitted insurer; 31 34-LS0415\H
553		-	~~SB0132B~~ -17- ~~CSSB~~ 132~~(L&C)~~
	553	+	insurance with any admitted insurer; 31 34-LS0415\G
	554	+	SB0132A -17- SB 132
554	555		New Text Underlined [DELETED TEXT BRACKETED]
555	556
556	557		(2) "health care insurance" has the meaning given in AS 21.12.050(b). 1
557	558		* Sec. 29. AS 21.34.040(d) is amended to read: 2
558	559		(d) An insurer, including a nonadmitted insurer, not domiciled in a state 3
559	560		or territory of the United States and not listed on the Quarterly Listing of Alien 4
560	561		Insurers maintained by the National Association of Insurance Commissioners 5
561	562		International Insurers Department [A NONADMITTED INSURER] may be 6
562	563		eligible to provide coverage in this state if it files with the director or the director's 7
563	564		designee a copy of its current annual financial statement that has been certified by the 8
564	565		insurer. The financial statement must be filed with and approved by the regulatory 9
565	566		authority in the domicile of the [NONADMITTED] insurer [,] or certified by an 10
566	567		accounting or auditing firm licensed in the jurisdiction of the insurer's domicile. The 11
567	568		[A FOREIGN] insurer shall file [PROVIDE] the approved or certified financial 12
568	569		statement with the director or director's designee not more than nine [SIX] months 13
569	570		after the close of the reporting period. [AN ALIEN INSURER SHALL PROVIDE 14
570	571		THE APPROVED OR CERTIFIED FINANCIAL STATEMENT NOT MORE THAN 15
571	572		NINE MONTHS AFTER THE CLOSE OF THE REPORTING PERIOD. IN THE 16
572	573		CASE OF AN INSURANCE EXCHANGE, THE STATEMENT MAY BE AN 17
573	574		AGGREGATE COMBINED STATEMENT OF ALL UNDERWRITING 18
574	575		SYNDICATES OPERATING DURING THE PERIOD REPORTED UPON.] 19
575	576		* Sec. 30. AS 21.34.170(a) is amended to read: 20
576	577		(a) A surplus lines broker shall file with the director, on forms prescribed by 21
577	578		the director, a report of all surplus lines insurance, by type of insurance as required to 22
578	579		be reported in the annual statement that must be filed with the director by admitted 23
579	580		insurers. The report must include all surplus lines insurance transactions during the 24
580	581		preceding period showing the aggregate gross premiums written, the aggregate return 25
581	582		premiums, and the amount of aggregate tax remitted to this state [, AND THE 26
582	583		AMOUNT OF AGGREGATE TAX REMITTED TO EACH OTHER STATE FOR 27
583	584		WHICH AN ALLOCATION IS MADE UNDER AS 21.34.180]. The surplus lines 28
584	585		broker [FORMS] shall file the report [BE FILED] quarterly on March 1, June 1, 29
585	586		September 1, and December 1 of each year. 30
586		-	* Sec. 31. AS 21.34.190 is amended to read: 31 34-LS0415\H
587		-	~~CSSB~~ 132~~(L&C)~~ -18- ~~SB0132B~~
	587	+	* Sec. 31. AS 21.34.190 is amended to read: 31 34-LS0415\G
	588	+	SB 132 -18- SB0132A
588	589		New Text Underlined [DELETED TEXT BRACKETED]
589	590
590	591		Sec. 21.34.190. Filing fee. (a) The fee for filing the statement under 1
591	592		AS 21.34.180(e) is an amount equal to one percent on gross premium charged less any 2
592	593		return premiums as reported on the statement. The surplus lines broker shall pay the 3
593	594		fee at the time of filing [OF] the statement and in a form and manner required by 4
594	595		the director. 5
595	596		(b) If the surplus lines broker does not pay the filing fee [IS NOT PAID] 6
596	597		when due, the surplus lines broker shall pay an additional late payment fee of $50 a 7
597	598		month [$250] plus two percent of the fee due per month, or part of a month, during 8
598	599		which the surplus lines broker fails to pay the full amount of the filing fee. The 9
599	600		late payment fee may not exceed $250 plus 10 percent of the filing fee due. If the 10
600	601		surplus lines broker does not pay the filing fee in the form or manner required by 11
601	602		the director, a penalty fee will be assessed equal to 25 percent of the filing fee due, 12
602	603		not to exceed $1,000, with a minimum penalty of $50. In addition to any other 13
603	604		penalty provided by law, the director may assess a penalty of not more than 14
604	605		$10,000 for a violation of this section. The director may suspend or revoke the 15
605	606		license of a surplus lines broker that fails to pay a fee under this section [SHALL 16
606	607		BECOME DUE AND PAYABLE BY THE SURPLUS LINES BROKER]. 17
607	608		* Sec. 32. AS 21.34.900(8) is amended to read: 18
608	609		(8) "home state," for purposes of determining the home state of an 19
609	610		insured in a multistate or multinational placement of nonadmitted insurance, is 20
610	611		defined as follows: 21
611	612		(A) except as provided in (B) or (C) of this paragraph, "home 22
612	613		state" means, with respect to an insured, 23
613	614		(i) the state in which an insured maintains its principal 24
614	615		place of business or, in the case of an individual, the individual's 25
615	616		principal residence; or 26
616	617		(ii) if 100 percent of the insured risk is located out of 27
617	618		the state referred to in (i) of this subparagraph, the state to which the 28
618	619		greatest percentage of the insured's taxable premium for that insurance 29
619	620		contract is allocated; 30
620		-	(B) if two or more insureds from an affiliated group are named 31 34-LS0415\H
621		-	~~SB0132B~~ -19- ~~CSSB~~ 132~~(L&C)~~
	621	+	(B) if two or more insureds from an affiliated group are named 31 34-LS0415\G
	622	+	SB0132A -19- SB 132
622	623		New Text Underlined [DELETED TEXT BRACKETED]
623	624
624	625		insureds on a single policy, "home state" under (A) of this paragraph is based 1
625	626		on the member of the affiliated group that has the largest percentage of 2
626	627		premium attributed to it under the insurance contract; 3
627	628		(C) if two or more insureds are named insureds on a 4
628	629		nonaffiliated group policy, "home state" under (A) of this paragraph 5
629	630		(i) is based on the group policyholder if the group 6
630	631		policyholder pays 100 percent of the premium; or 7
631	632		(ii) is based on the named insured of the group 8
632	633		policy if the group policyholder does not pay 100 percent of the 9
633	634		premium from the policyholder's own funds; 10
634	635		(D) for purposes of (A) of this paragraph, the principal place of 11
635	636		business of an insured is 12
636	637		(i) the state where the insured maintains its headquarters 13
637	638		and where the insured's high-level officers direct, control, and 14
638	639		coordinate the business activities of the insured; or 15
639	640		(ii) if an insured's high-level officers direct, control, 16
640	641		and coordinate the business activities of the insured in more than 17
641	642		one state or if the insured maintains its headquarters in a 18
642	643		jurisdiction outside the United States, the state where the greatest 19
643	644		percentage of the insured's taxable premium for the insurance 20
644	645		contract is allocated; 21
645	646		(E) for purposes of (A) of this paragraph, the principal 22
646	647		residence of an insured is 23
647	648		(i) the state where the insured resides for the 24
648	649		greatest number of days in a calendar year; or 25
649		-	(ii) if the insured resides for the greatest number of ~~days in a calendar~~ 26
650		-	year in a jurisdiction outside the United States, ~~the state where the greatest~~ 27
651		-	percentage of the insured's taxable ~~premium for the insurance contract is~~ 28
652		-	allocated; 29
	650	+	(ii) if the insured resides for the greatest number of 26
	651	+	days in a calendar year in a jurisdiction outside the United States, 27
	652	+	the state where the greatest percentage of the insured's taxable 28
	653	+	premium for the insurance contract is allocated; 29
653	654		* Sec. 33. AS 21.34.900(15) is amended to read: 30
654		-	(15) "wet marine and transportation insurance" has the meaning given 31 34-LS0415\H
655		-	~~CSSB~~ 132~~(L&C)~~ -20- ~~SB0132B~~
	655	+	(15) "wet marine and transportation insurance" has the meaning given 31 34-LS0415\G
	656	+	SB 132 -20- SB0132A
656	657		New Text Underlined [DELETED TEXT BRACKETED]
657	658
658	659		in AS 21.12.090(b) [MEANS ONE OR MORE OF THE FOLLOWING: 1
659	660		(A) INSURANCE UPON, OF INTEREST IN, OR RELATING 2
660	661		TO VESSELS, CRAFTS, HULLS, EXCEPT VESSELS OF 50 3
661	662		DISPLACEMENT TONS OR LESS; 4
662	663		(B) INSURANCE OF MARINE BUILDERS RISKS, 5
663	664		MARINE WAR RISKS, AND CONTRACTS OF MARINE PROTECTION 6
664	665		AND INDEMNITY INSURANCE; 7
665	666		(C) INSURANCE OF FREIGHT AND DISBURSEMENTS 8
666	667		PERTAINING TO A SUBJECT OF INSURANCE COMING WITHIN THIS 9
667	668		PARAGRAPH; OR 10
668	669		(D) INSURANCE OF PERSONAL PROPERTY AND 11
669	670		INTERESTS IN PERSONAL PR OPERTY, IN COURSE OF 12
670	671		EXPORTATION FROM OR IMPORTATION INTO A COUNTRY OR IN 13
671	672		THE COURSE OF COASTAL OR INLAND WATER TRANSPORTATION, 14
672	673		INCLUDING TRANSPORTATION BY LAND, WATER, OR AIR FROM 15
673	674		POINT OF ORIGIN TO FINAL DESTINATION IN CONNECTION WITH 16
674	675		ANY AND ALL RISKS OR PERILS OF NAVIGATION, TRANSIT, OR 17
675	676		TRANSPORTATION, AND WHILE BEING REPAIRED FOR AND WHILE 18
676	677		AWAITING SHIPMENT, AND DURING ANY DELAYS, 19
677	678		TRANSSHIPMENT, OR RESHIPMENT INCIDENT TO THEM]. 20
678	679		* Sec. 34. AS 21.36.125(a) is amended to read: 21
679	680		(a) A person may not commit any of the following acts or practices: 22
680	681		(1) misrepresent facts or policy provisions relating to coverage of an 23
681	682		insurance policy; 24
682	683		(2) fail to acknowledge and act promptly upon communications 25
683	684		regarding a claim arising under an insurance policy; 26
684	685		(3) fail to adopt and implement reasonable standards for prompt 27
685	686		investigation of claims; 28
686	687		(4) refuse to pay a claim without a reasonable investigation of all of 29
687	688		the available information and an explanation of the basis for denial of the claim or for 30
688		-	an offer of compromise settlement; 31 34-LS0415\H
689		-	~~SB0132B~~ -21- ~~CSSB~~ 132~~(L&C)~~
	689	+	an offer of compromise settlement; 31 34-LS0415\G
	690	+	SB0132A -21- SB 132
690	691		New Text Underlined [DELETED TEXT BRACKETED]
691	692
692	693		(5) fail to affirm or deny coverage of claims within a reasonable time 1
693	694		of the completion of proof-of-loss statements; 2
694	695		(6) fail to attempt in good faith to make prompt and equitable 3
695	696		settlement of claims in which liability is reasonably clear; 4
696	697		(7) engage in a pattern or practice of compelling insureds to litigate for 5
697	698		recovery of amounts due under insurance policies by offering substantially less than 6
698	699		the amounts ultimately recovered in actions brought by those insureds; 7
699	700		(8) compel an insured or third-party claimant in a case in which 8
700	701		liability is clear to litigate for recovery of an amount due under an insurance policy by 9
701	702		offering an amount that does not have an objectively reasonable basis in law and fact 10
702	703		and that has not been documented in the insurer's file; 11
703	704		(9) attempt to make an unreasonably low settlement by reference to 12
704	705		printed advertising matter accompanying or included in an application; 13
705	706		(10) attempt to settle a claim on the basis of an application that has 14
706	707		been altered without the consent of the insured; 15
707	708		(11) make a claims payment without including a statement of the 16
708	709		coverage under which the payment is made; 17
709	710		(12) make known to an insured or third-party claimant a policy of 18
710	711		appealing from an arbitration award in favor of an insured or third-party claimant for 19
711	712		the purpose of compelling the insured or third-party claimant to accept a settlement or 20
712	713		compromise less than the amount awarded in arbitration; 21
713	714		(13) delay investigation or payment of claims by requiring submission 22
714	715		of unnecessary or substantially repetitive claims reports and proof-of-loss forms; 23
715	716		(14) fail to promptly settle claims under one portion of a policy for the 24
716	717		purpose of influencing settlements under other portions of the policy; 25
717	718		(15) fail to promptly provide a reasonable explanation of the basis in 26
718	719		the insurance policy in relation to the facts or applicable law for denial of a claim or 27
719	720		for the offer of a compromise settlement; [OR] 28
720	721		(16) offer a form of settlement or pay a judgment in any manner 29
721	722		prohibited by AS 21.96.030; 30
722		-	(17) violate a provision contained in AS 21.07; or 31 34-LS0415\H
723		-	~~CSSB~~ 132~~(L&C)~~ -22- ~~SB0132B~~
	723	+	(17) violate a provision contained in AS 21.07; or 31 34-LS0415\G
	724	+	SB 132 -22- SB0132A
724	725		New Text Underlined [DELETED TEXT BRACKETED]
725	726
726	727		(18) offer a valuation that depreciates the expense of labor in 1
727	728		violation of AS 21.60.030. 2
728	729		* Sec. 35. AS 21.36.225(a) is amended to read: 3
729	730		(a) An [EXCEPT FOR A HEALTH CARE INSURANCE POLICY 4
730	731		SUBJECT TO AS 21.51.400 OR AS 21.54.130, AN] insurer may not cancel a health 5
731	732		insurance policy unless the insurer provides written notice to a policyholder at least 45 6
732	733		days before the effective date of the cancellation. 7
733	734		* Sec. 36. AS 21.36.235(a) is amended to read: 8
734	735		(a) Except as provided in AS 21.36.305, if the renewal premium is increased 9
735	736		more than 10 percent for a reason other than an increase in coverage or exposure base, 10
736	737		or if after renewal there will be a material restriction or reduction in coverage not 11
737	738		specifically requested by the insured, written notice shall be mailed to the insured and 12
738	739		to the agent or broker of record as required by AS 21.36.260 13
739	740		[(1) AT LEAST 20 DAYS BEFORE EXPIRATION OF A 14
740	741		PERSONAL INSURANCE POLICY; OR 15
741	742		(2)] at least 45 days before expiration of the [A BUSINESS OR 16
742	743		COMMERCIAL] policy. 17
743	744		* Sec. 37. AS 21.36.240(a) is amended to read: 18
744	745		(a) An insurer may only fail to renew a personal insurance policy on the 19
745	746		policy's annual anniversary. An insurer may not fail to renew a policy unless a written 20
746	747		notice of nonrenewal is mailed to the named insured under AS 21.36.260 at least [20 21
747	748		DAYS FOR A PERSONAL INSURANCE POLICY, AND AT LEAST] 45 days 22
748	749		[FOR A BUSINESS OR COMMERCIAL INSURANCE POLICY,] before the dat e 23
749	750		the policy expires or the anniversary date of a policy written for a term longer than one 24
750	751		year or with no fixed expiration date. 25
751	752		* Sec. 38. AS 21.36.240 is amended by adding a new subsection to read: 26
752	753		(e) For purposes of this section, an offer of placement with an affiliate insurer 27
753	754		does not constitute a failure by an insurer to renew coverage. 28
754	755		* Sec. 39. AS 21.36 is amended by adding a new section to Article 4 to read: 29
755	756		Sec. 21.36.245. Cancellation of and failure to renew property and casualty 30
756		-	insurance. An insurer may not cancel or fail to renew a property insurance policy, or a 31 34-LS0415\H
757		-	~~SB0132B~~ -23- ~~CSSB~~ 132~~(L&C)~~
	757	+	insurance. An insurer may not cancel or fail to renew a property insurance policy, or a 31 34-LS0415\G
	758	+	SB0132A -23- SB 132
758	759		New Text Underlined [DELETED TEXT BRACKETED]
759	760
760	761		casualty insurance policy insuring a business or commercial property, as a result of a 1
761	762		claim to an insurer made solely to meet a local, state, or federal aid requirement where 2
762	763		the insurer does not apply coverage and does not pay a benefit. 3
763		-	* Sec. 40. AS 21.36.475(a) is amended to read: 4
764		-	(a) An owner controlled ~~insurance program~~ or a contractor controlled 5
765		-	~~insurance~~ program ~~is subject to both AS 21.39 and AS 21.42, must be approved by the~~ 6
766		-	~~director, and shall be allowed only for a major~~ construction ~~project or a major multi-~~7
767		-	~~owner residential construction project.~~ ~~Owner controlled and contractor controlled~~ 8
768		-	~~insurance programs are limited to property~~ insurance ~~as defined in AS 21.12.060 and~~ 9
769		-	~~casualty insurance as defined in AS 21.12.070.~~ 10
770		-	* Sec. ~~41.~~ AS ~~21.36.475(b) is amended to read:~~ 11
771		-	~~(b) In this section,~~ an ~~owner controlled or contractor controlled insurance~~ 12
772		-	~~[INSURED] program~~ does not ~~include~~ 13
773		-	~~(1) builder's risk or course of~~ construction ~~insurance;~~ 14
774		-	(2) ~~insurance relating~~ to ~~the transportation of cargo or other property;~~ 15
775		-	(3) ~~insurance covering one or more affiliates~~, ~~subsidiaries~~, ~~partners~~, or 16
776		-	~~joint venture partners of a person; or~~ 17
777		-	(4) ~~insurance policies endorsed to name one~~ or ~~more persons as~~ 18
778		-	~~additional insureds if naming~~ a ~~person as an additional insured is a term required~~ 19
779		-	~~by a contract;~~ ~~this paragraph does~~ not ~~apply to an owner controlled or~~ 20
780		-	~~contractor controlled insurance program for a major construction project.~~ 21
781		-	* Sec. 42. AS 21.36.475(c) is amended by ~~adding~~ a ~~new paragraph to read:~~ 22
782		-	~~(7) "major~~ ~~multi-owner residential construction project"~~ ~~means a~~ 23
783		-	~~construction project for condominiums,~~ ~~townhouses, cooperative housing~~ 24
784		-	~~developments~~, ~~or other residential housing involving at least 50 units~~ and ~~three or~~ 25
785		-	~~more property owners with a total cost~~ of ~~$25,000,000 or more.~~ 26
786		-	* Sec. 43. AS 21.36.505(a) ~~is amended~~ to ~~read:~~ 27
787		-	~~(a) A person may not sell~~, ~~market~~, ~~promote, advertise,~~ ~~or otherwise distribute a~~ 28
788		-	health ~~discount plan unless~~ 29
789		-	~~(1) each advertisement,~~ ~~policy, document, information, statement, or~~ 30
790		-	~~other communication regarding~~ the health ~~discount plan and the plan itself contain a~~ 31 34-LS0415\H
791		-	~~CSSB~~ 132~~(L&C)~~ -24- ~~SB0132B~~
	764	+	* Sec. 40. AS 21.36.475(b) is amended to read: 4
	765	+	(b) In this section, an owner controlled or contractor controlled insurance 5
	766	+	[INSURED] program does not include 6
	767	+	(1) builder's risk or course of construction insurance; 7
	768	+	(2) insurance relating to the transportation of cargo or other property; 8
	769	+	(3) insurance covering one or more affiliates, subsidiaries, partners, or 9
	770	+	joint venture partners of a person; or 10
	771	+	(4) insurance policies endorsed to name one or more persons as 11
	772	+	additional insureds if naming a person as an additional insured is a term required 12
	773	+	by a contract; this paragraph does not apply to an owner controlled or 13
	774	+	contractor controlled insurance program for a major construction project. 14
	775	+	* Sec. 41. AS 21.36.505(a) is amended to read: 15
	776	+	(a) A person may not sell, market, promote, advertise, or otherwise distribute a 16
	777	+	health discount plan unless 17
	778	+	(1) each advertisement, policy, document, information, statement, or 18
	779	+	other communication regarding the health discount plan and the plan itself contain a 19
	780	+	statement, in bold and prominent type, that the health discount plan is not insurance; 20
	781	+	(2) [THE DISCOUNTS OFFERED UNDER THE HEALTH 21
	782	+	DISCOUNT PLAN ARE SPECIFICALLY AUTHORIZED BY A CONTRACT 22
	783	+	WITH EACH PROVIDER OF THE SERVICES OR SUPPLIES LISTED IN 23
	784	+	CONJUNCTION WITH THE PLAN; 24
	785	+	(3)] the health discount plan states the name, address, and telephone 25
	786	+	number of the administrator of the plan; 26
	787	+	(3) [(4)] the person makes readily available to the consumer a 27
	788	+	complete, accurate, and up-to-date list of providers participating in the plan that offer 28
	789	+	discounted health care services or supplies in the consumer's local area and the 29
	790	+	discounts offered by the providers; 30
	791	+	(4) [(5)] the person provides the consumer the right to cancel the health 31 34-LS0415\G
	792	+	SB 132 -24- SB0132A
792	793		New Text Underlined [DELETED TEXT BRACKETED]
793	794
794		-	~~statement, in bold and prominent type, that the health~~ discount plan ~~is not insurance~~; 1
795		-	(2) [~~THE DISCOUNTS OFFERED UNDER~~ THE ~~HEALTH~~ 2
796		-	~~DISCOUNT PLAN ARE SPECIFICALLY AUTHORIZED BY~~ A ~~CONTRACT~~ 3
797		-	~~WITH EACH PROVIDER~~ OF THE ~~SERVICES OR SUPPLIES LISTED IN~~ 4
798		-	~~CONJUNCTION WITH~~ THE PLAN; 5
799		-	~~(3)]~~ the ~~health discount plan states the name, address,~~ and ~~telephone~~ 6
800		-	~~number of~~ the ~~administrator of~~ the plan; 7
801		-	~~(3) [(4)]~~ the ~~person makes readily available to the consumer a~~ 8
802		-	~~complete, accurate,~~ ~~and up-~~to~~-date list of providers participating in the plan that offer~~ 9
803		-	~~discounted health care services or supplies in the consumer's local area and the~~ 10
804		-	~~discounts offered by the providers;~~ 11
805		-	~~(4) [(5)] the person provides the consumer the right to cancel the health~~ 12
806		-	~~discount plan within 30 days after purchase of the plan~~; 13
807		-	(5) ~~[AND (6)]~~ the ~~person provides the consumer with a full refund~~ of 14
808		-	~~all payments made,~~ ~~except for a nominal processing fee, within 30 days after~~ 15
809		-	~~notification of cancellation of the plan under~~ (5) ~~of this subsection~~; 16
810		-	(6) the ~~person registers the health discount plan in accordance~~ 17
811		-	~~with regulations adopted by the director; and~~ 18
812		-	(7) the ~~person renews~~ the ~~health discount plan when required~~ 19
813		-	~~under regulations adopted by the director.~~ 20
814		-	* Sec. ~~44. AS 21.36 is amended by adding a new section to article 5 to read:~~ 21
815		-	~~Sec. 21.36.525. Decisions based on elected official status. (a) A person~~ 22
816		-	~~transacting insurance in this state may not,~~ ~~solely because of a person's status as an~~ 23
817		-	elected official, 24
818		-	~~(1) refuse to issue or renew insurance coverage;~~ 25
819		-	~~(2) limit the scope of insurance coverage;~~ 26
820		-	~~(3) cancel an existing policy~~ of ~~insurance;~~ 27
821		-	(4) ~~deny a covered claim; or~~ 28
822		-	(5) ~~increase~~ the ~~premium~~, ~~policy fees, or rates charged on an insurance~~ 29
823		-	~~policy.~~ 30
824		-	~~(b) The provisions of (~~a) of this ~~section do not apply if the refusal, limitation,~~ 31 34-LS0415\H
825		-	~~SB0132B~~ -25- ~~CSSB~~ 132~~(L&C)~~
	795	+	discount plan within 30 days after purchase of the plan; 1
	796	+	(5) [AND (6)] the person provides the consumer with a full refund of 2
	797	+	all payments made, except for a nominal processing fee, within 30 days after 3
	798	+	notification of cancellation of the plan under (5) of this subsection; 4
	799	+	(6) the person registers the health discount plan in accordance 5
	800	+	with regulations adopted by the director; and 6
	801	+	(7) the person renews the health discount plan when required 7
	802	+	under regulations adopted by the director. 8
	803	+	* Sec. 42. AS 21.36 is amended by adding a new section to article 5 to read: 9
	804	+	Sec. 21.36.525. Decisions based on elected official status. (a) A person 10
	805	+	transacting insurance in this state may not, solely because of a person's status as an 11
	806	+	elected official, 12
	807	+	(1) refuse to issue or renew insurance coverage; 13
	808	+	(2) limit the scope of insurance coverage; 14
	809	+	(3) cancel an existing policy of insurance; 15
	810	+	(4) deny a covered claim; or 16
	811	+	(5) increase the premium, policy fees, or rates charged on an insurance 17
	812	+	policy. 18
	813	+	(b) The provisions of (a) of this section do not apply if the refusal, limitation, 19
	814	+	cancellation, denial, or increase is 20
	815	+	(1) based on sound underwriting or actuarial principles reasonably 21
	816	+	related to actual or anticipated loss experience; or 22
	817	+	(2) required or authorized by law or regulation. 23
	818	+	(c) In this section, "elected official" means a member of the legislature, 24
	819	+	the governor, the lieutenant governor, a member of the state's congressional 25
	820	+	delegation, a constitutional convention delegate, a borough or city mayor, or a member 26
	821	+	of a borough or city assembly, council, or school board. 27
	822	+	* Sec. 43. AS 21.36.910(d) is amended to read: 28
	823	+	(d) In addition to an order issued under (c) of this section, the director may, 29
	824	+	after a hearing, order restitution, assess a penalty of not more than $2,500 for each 30
	825	+	violation or $25,000 for engaging in a general business practice in violation of this 31 34-LS0415\G
	826	+	SB0132A -25- SB 132
826	827		New Text Underlined [DELETED TEXT BRACKETED]
827	828
828		-	~~cancellation, denial,~~ ~~or increase is~~ 1
829		-	~~(1) based on sound underwriting or actuarial principles reasonably~~ 2
830		-	~~related~~ to ~~actual or anticipated loss experience; or~~ 3
831		-	(2) ~~required or authorized by law or regulation.~~ 4
832		-	~~(c) In this section~~, ~~"elected official" means~~ a ~~member of the legislature,~~ ~~the~~ 5
833		-	~~governor,~~ the ~~lieutenant governor~~, ~~a member of the state's congressional delegation,~~ a 6
834		-	~~constitutional convention delegate,~~ a ~~borough or city mayor, or a member of a borough~~ 7
835		-	~~or city assembly,~~ ~~council,~~ or ~~school board.~~ 8
836		-	* Sec. 45. AS 21.36.910(d) is amended to ~~read:~~ 9
837		-	~~(d) In addition to an order issued~~ under (c) of this section~~, the director may,~~ 10
838		-	after ~~a hearing,~~ ~~order restitution,~~ ~~assess a penalty of~~ not ~~more than $2~~,~~500 for each~~ 11
839		-	~~violation or $25,000 for engaging in a general business practice in violation of this~~ 12
840		-	~~chapter~~. ~~The director may include interest calculated under~~ AS 09.30.~~070 in an~~ 13
841		-	~~order for restitution entered~~ under this ~~subsection.~~ 14
842		-	* Sec. 46. AS 21.39.155(c) is ~~amended to read:~~ 15
843		-	(c) ~~An insurer may impose a surcharge not to exceed 25 percent~~ of ~~the~~ 16
844		-	~~premium~~ for ~~assigned risk pool insurance, except that a surcharge may not be applied~~ 17
845		-	to ~~the first $6,000 [$3,000] in premium in any policy year.~~ 18
846		-	* Sec. 47. AS 21.42.250(a) ~~is amended to read:~~ 19
847		-	~~(a)~~ An ~~insurer shall provide~~ a ~~policy or endorsement to the insured or to the~~ 20
848		-	~~person entitled to it by mail~~ or ~~electronic mail [DELIVERY] or by posting on~~ the 21
849		-	~~insurer's Internet website under~~ (c) ~~of this section within a reasonable period of time~~ 22
850		-	~~after its issuance.~~ ~~The insurer is not required to mail, deliver~~, or ~~post~~ the ~~policy or~~ 23
851		-	~~endorsement until all conditions required by~~ the ~~insurer have been met by~~ the ~~insured.~~ 24
852		-	* Sec. ~~48. AS 21.42.377~~(c) ~~is amended to read:~~ 25
853		-	(c) ~~Coverage provided under this section applies to a covered individual who~~ 26
854		-	is 27
855		-	~~(1) at least 45 [50] years of age~~; or 28
856		-	~~(2) less than 45 [50] years of age and at high risk for colorectal cancer.~~ 29
857		-	* Sec. ~~49. AS 21.45.305(c)(2) is amended~~ to ~~read:~~ 30
858		-	~~(2) The interest rate used in determining minimum nonforfeiture~~ 31 34-LS0415\H
859		-	~~CSSB~~ 132~~(L&C)~~ -26- ~~SB0132B~~
	829	+	chapter. The director may include interest calculated under AS 09.30.070 in an 1
	830	+	order for restitution entered under this subsection. 2
	831	+	* Sec. 44. AS 21.39.155(c) is amended to read: 3
	832	+	(c) An insurer may impose a surcharge not to exceed 25 percent of the 4
	833	+	premium for assigned risk pool insurance, except that a surcharge may not be applied 5
	834	+	to the first $6,000 [$3,000] in premium in any policy year. 6
	835	+	* Sec. 45. AS 21.42.250(a) is amended to read: 7
	836	+	(a) An insurer shall provide a policy or endorsement to the insured or to the 8
	837	+	person entitled to it by mail or electronic mail [DELIVERY] or by posting on the 9
	838	+	insurer's Internet website under (c) of this section within a reasonable period of time 10
	839	+	after its issuance. The insurer is not required to mail, deliver, or post the policy or 11
	840	+	endorsement until all conditions required by the insurer have been met by the insured. 12
	841	+	* Sec. 46. AS 21.42.377(c) is amended to read: 13
	842	+	(c) Coverage provided under this section applies to a covered individual who 14
	843	+	is 15
	844	+	(1) at least 45 [50] years of age; or 16
	845	+	(2) less than 45 [50] years of age and at high risk for colorectal cancer. 17
	846	+	* Sec. 47. AS 21.45.305(c)(2) is amended to read: 18
	847	+	(2) The interest rate used in determining minimum nonforfeiture 19
	848	+	amounts shall be an annual rate of interest determined as the lesser of three percent a 20
	849	+	year or the following, which shall be specified in the contract if the interest rate will be 21
	850	+	reset: (A) the five-year constant maturity treasury rate reported by the federal reserve 22
	851	+	as of a date, or average over a period, rounded to the nearest 1/ 20 of one percent, 23
	852	+	specified in the contract not more than 15 months before the contract issue date or 24
	853	+	redetermination date under (D) of this paragraph; (B) reduced by 125 basis points; (C) 25
	854	+	where the resulting interest rate is not less than 0.15 [ONE] percent; and (D) the 26
	855	+	interest rate must apply for an initial period and may be redetermined for additional 27
	856	+	periods; the redetermination date, basis, and period, if any, must be stated in the 28
	857	+	contract; the basis is the date or average over a specified period that produces the 29
	858	+	value of the five-year constant maturity treasury rate to be used at each 30
	859	+	redetermination date. 31 34-LS0415\G
	860	+	SB 132 -26- SB0132A
860	861		New Text Underlined [DELETED TEXT BRACKETED]
861	862
862		-	~~amounts shall be an annual rate of interest determined~~ as ~~the lesser of three percent a~~ 1
863		-	~~year or~~ the ~~following, which shall be specified in the contract if the interest rate will be~~ 2
864		-	~~reset: (A)~~ the ~~five-year constant maturity treasury rate reported by~~ the ~~federal reserve~~ 3
865		-	as of ~~a date,~~ ~~or average over a period,~~ ~~rounded~~ to the ~~nearest 1/ 20 of one percent,~~ 4
866		-	~~specified in~~ the ~~contract not more than 15 months before the contract issue date or~~ 5
867		-	~~redetermination date under (D) of this paragraph;~~ ~~(B) reduced by 125 basis points;~~ ~~(C)~~ 6
868		-	~~where~~ the ~~resulting interest rate~~ is not ~~less than 0.15 [ONE] percent; and (D) the~~ 7
869		-	~~interest rate must apply for an initial period and may be redetermined for additional~~ 8
870		-	~~periods; the redetermination date, basis, and period, if any, must be stated in the~~ 9
871		-	~~contract; the basis~~ is ~~the date or average over a specified period that produces the~~ 10
872		-	~~value of~~ the ~~five-year constant maturity treasury rate~~ to ~~be used at each~~ 11
873		-	~~redetermination date.~~ 12
874		-	* Sec. ~~50. AS 21.48.010(f) is amended to read:~~ 13
875		-	~~(f) An insurer shall submit~~ to the ~~director information demonstrating~~ 14
876		-	~~[SATISFACTORY~~ TO ~~THE DIRECTOR]~~ ~~that~~ the ~~group meets the requirements of~~ 15
877		-	~~(a) or (e) of this section. If~~ the ~~director finds the information to be satisfactory, the~~ 16
878		-	~~director shall [,~~ ~~AND THE DIRECTOR MUST AFFIRMATIVELY]~~ ~~approve [OF]~~ 17
879		-	~~the~~ [~~GROUP BEFORE AN~~] ~~insurer to [MAY] issue a group life policy to a group~~ 18
880		-	~~under (~~a~~) or (e) of this section.~~ ~~The director's approval is not required~~ for ~~a single~~ 19
881		-	~~employer group,~~ ~~labor union group, or multiple employer welfare arrangement~~ 20
882		-	~~authorized under~~ AS 21.~~85.~~ 21
883		-	* Sec. 51. ~~AS 21~~.~~51.060~~(b) ~~is amended to read:~~ 22
884		-	~~(b)~~ A ~~policy in which~~ the ~~insurer reserves the right to refuse renewal shall~~ 23
885		-	~~have, at~~ the ~~beginning of~~ the ~~provision in (a) of this section,~~ 24
886		-	~~"Unless not less than 45 [30] days before the premium due date the insurer has~~ 25
887		-	~~delivered~~ to ~~the insured or~~ has ~~mailed to the last address of the insured as shown by the~~ 26
888		-	~~records of~~ the ~~insurer written notice of its intention not to renew this policy beyond~~ the ~~period~~ 27
889		-	~~for which the premium has been accepted~~." 28
890		-	* Sec. 52. AS 21.57.~~160~~(1) is amended to read: 29
891		-	(1) ~~"agricultural [AGRICULTURE] credit transaction commitment"~~ 30
892		-	~~means~~ a ~~binding agreement to loan money up to a fixed amount as needed for~~ 31 34-LS0415\H
893		-	~~SB0132B~~ -27- ~~CSSB~~ 132~~(L&C)~~
	863	+	* Sec. 48. AS 21.48.010(f) is amended to read: 1
	864	+	(f) An insurer shall submit to the director information demonstrating 2
	865	+	[SATISFACTORY TO THE DIRECTOR] that the group meets the requirements of 3
	866	+	(a) or (e) of this section. If the director finds the information to be satisfactory, the 4
	867	+	director shall [, AND THE DIRECTOR MUST AFFIRMATIVELY] approve [OF] 5
	868	+	the [GROUP BEFORE AN] insurer to [MAY] issue a group life policy to a group 6
	869	+	under (a) or (e) of this section. The director's approval is not required for a single 7
	870	+	employer group, labor union group, or multiple employer welfare arrangement 8
	871	+	authorized under AS 21.85. 9
	872	+	* Sec. 49. AS 21.51.060(b) is amended to read: 10
	873	+	(b) A policy in which the insurer reserves the right to refuse renewal shall 11
	874	+	have, at the beginning of the provision in (a) of this section, 12
	875	+	"Unless not less than 45 [30] days before the premium due date the insurer has 13
	876	+	delivered to the insured or has mailed to the last address of the insured as shown by the 14
	877	+	records of the insurer written notice of its intention not to renew this policy beyond the period 15
	878	+	for which the premium has been accepted." 16
	879	+	* Sec. 50. AS 21.57.160(1) is amended to read: 17
	880	+	(1) "agricultural [AGRICULTURE] credit transaction commitment" 18
	881	+	means a binding agreement to loan money up to a fixed amount as needed for 19
	882	+	agricultural purposes; 20
	883	+	* Sec. 51. AS 21.59 is amended by adding a new section to read: 21
	884	+	Sec. 21.59.125. Motor vehicle service contract approval. (a) A provider may 22
	885	+	not deliver or issue for delivery a motor vehicle service contract unless the provider 23
	886	+	files the contract with the division and receives approval from the director for the 24
	887	+	contract. 25
	888	+	(b) If a change is made to a motor vehicle service contract after it has been 26
	889	+	approved, the provider shall file and receive approval for the changed contract in 27
	890	+	accordance with (a) of this section. 28
	891	+	* Sec. 52. AS 21.59.140(c) is amended to read: 29
	892	+	(c) A licensee shall report to the director in writing any administrative action 30
	893	+	taken against the licensee by a governmental agency [OF ANOTHER STATE OR BY 31 34-LS0415\G
	894	+	SB0132A -27- SB 132
894	895		New Text Underlined [DELETED TEXT BRACKETED]
895	896
896		-	~~agricultural purposes;~~ 1
897		-	* Sec. ~~53. AS 21.59 is amended by adding~~ a ~~new section~~ to ~~read:~~ 2
898		-	~~Sec~~. ~~21.59.125. Motor vehicle service contract approval. (a)~~ A ~~provider may~~ 3
899		-	~~not deliver or issue for delivery a motor vehicle service contract unless~~ the ~~provider~~ 4
900		-	~~files~~ the ~~contract with~~ the ~~division and receives approval from~~ the ~~director for the~~ 5
901		-	~~contract.~~ 6
902		-	~~(b) If a change is made to a motor vehicle service contract after it has been~~ 7
903		-	~~approved, the provider shall file and receive approval for the changed contract in~~ 8
904		-	~~accordance with (a)~~ of ~~this section~~. 9
905		-	* Sec. ~~54.~~ AS ~~21.59.140(c) is amended to read:~~ 10
906		-	~~(c) A licensee shall report~~ to ~~the director in writing any administrative action~~ 11
907		-	~~taken against~~ the ~~licensee by a governmental agency [~~OF ~~ANOTHER STATE~~ OR BY 12
908		-	~~A GOVERNMENTAL AGENCY OF ANOTHER JURISDICTION] within 30 days~~ 13
909		-	~~after the final disposition of the action~~. ~~A licensee shall submit~~ to ~~the director the final~~ 14
910		-	~~order and other relevant legal documents in the action~~. A ~~licensee shall report to~~ the 15
911		-	~~director any criminal prosecution~~ of the ~~licensee within 30 days after the date of filing~~ 16
912		-	of the ~~criminal complaint,~~ ~~indictment, or citation~~ in the ~~prosecution. The licensee shall~~ 17
913		-	~~submit to~~ the ~~director a copy of~~ the ~~criminal complaint,~~ ~~calendaring order,~~ ~~and other~~ 18
914		-	~~relevant legal documents~~ in the ~~prosecution.~~ 19
915		-	* Sec. 55. AS 21.60 is amended by ~~adding a new section to read:~~ 20
916		-	~~Sec. 21.60.030. Depreciation~~ of ~~labor. In a residential property policy, the~~ 21
917		-	~~valuation of~~ the ~~expense of labor may not be depreciated, except where offered as~~ a 22
918		-	~~stand-alone endorsement that specifically identifies the nontangible items subject to~~ 23
919		-	~~depreciation~~. An ~~endorsement offered under this section must be an optional coverage~~ 24
920		-	~~and provide~~ a ~~proportionate reduction in premium~~. 25
921		-	* Sec. ~~56. AS 21.76.070 is amended to read:~~ 26
922		-	~~Sec~~. ~~21.76.070. Excess insurance. A cooperative agreement may authorize the~~ 27
923		-	~~board of directors~~ to ~~purchase excess or catastrophic insurance on behalf of the joint~~ 28
924		-	~~insurance arrangement.~~ ~~The cost of the insurance shall be apportioned in the manner~~ 29
925		-	~~specified in~~ the ~~joint insurance agreement. The board may purchase insurance under~~ 30
926		-	~~this section only from an~~ insurer ~~authorized to do business in the state, except that an~~ 31 34-LS0415\H
927		-	~~CSSB~~ 132~~(L&C)~~ -28- ~~SB0132B~~
	897	+	A GOVERNMENTAL AGENCY OF ANOTHER JURISDICTION] within 30 days 1
	898	+	after the final disposition of the action. A licensee shall submit to the director the final 2
	899	+	order and other relevant legal documents in the action. A licensee shall report to the 3
	900	+	director any criminal prosecution of the licensee within 30 days after the date of filing 4
	901	+	of the criminal complaint, indictment, or citation in the prosecution. The licensee shall 5
	902	+	submit to the director a copy of the criminal complaint, calendaring order, and other 6
	903	+	relevant legal documents in the prosecution. 7
	904	+	* Sec. 53. AS 21.60 is amended by adding a new section to read: 8
	905	+	Sec. 21.60.030. Depreciation of labor. When a property loss is subject to 9
	906	+	valuation, the valuation of the expense of labor may not be included as a component of 10
	907	+	physical depreciation and may not be subject to depreciation or betterment, except for 11
	908	+	the intrinsic labor costs that are included in the cost of manufactured materials or 12
	909	+	goods. 13
	910	+	* Sec. 54. AS 21.76.070 is amended to read: 14
	911	+	Sec. 21.76.070. Excess insurance. A cooperative agreement may authorize the 15
	912	+	board of directors to purchase excess or catastrophic insurance on behalf of the joint 16
	913	+	insurance arrangement. The cost of the insurance shall be apportioned in the manner 17
	914	+	specified in the joint insurance agreement. The board may purchase insurance under 18
	915	+	this section only from an insurer authorized to do business in the state, except that an 19
	916	+	arrangement formed by municipalities or school districts may purchase insurance 20
	917	+	under this section from a risk-sharing pool established by a national association of 21
	918	+	similar entities if the risk-sharing pool meets the qualifications for a nonadmitted 22
	919	+	[AN UNAUTHORIZED] insurer under AS 21.34.040(d) [AS 21.34.040(b) AND (d) 23
	920	+	AND 21.34.220] and has capital and policyholders surplus in an amount at least as 24
	921	+	great as would be required if the association were a domestic multiple line insurer. An 25
	922	+	arrangement may purchase insurance under this section for property and liability risks 26
	923	+	from unauthorized insurers allowed for use by licensed Alaska surplus lines brokers. 27
	924	+	* Sec. 55. AS 21.79.020(c) is amended to read: 28
	925	+	(c) This chapter does not apply to 29
	926	+	(1) that part of a policy or contract that is not guaranteed by the 30
	927	+	member insurer; 31 34-LS0415\G
	928	+	SB 132 -28- SB0132A
928	929		New Text Underlined [DELETED TEXT BRACKETED]
929	930
930		-	~~arrangement formed~~ by ~~municipalities~~ or ~~school districts may purchase insurance~~ 1
931		-	~~under this section from~~ a ~~risk-sharing pool established by a national association~~ of 2
932		-	~~similar entities if the risk-sharing pool meets the qualifications for a nonadmitted~~ 3
933		-	~~[AN UNAUTHORIZED] insurer under AS 21.34.040~~(d) ~~[AS 21.34.040(b) AND (d)~~ 4
934		-	~~AND 21.34.220] and has capital and policyholders surplus in an amount at least as~~ 5
935		-	~~great as would be required if~~ the ~~association were a domestic multiple line insurer.~~ An 6
936		-	~~arrangement may purchase insurance under this section for property and liability risks~~ 7
937		-	~~from unauthorized insurers allowed for use by licensed Alaska surplus lines brokers.~~ 8
938		-	* Sec. 57. AS 21.79.020(c) is amended to read: 9
939		-	(c) ~~This chapter does not apply to~~ 10
940		-	~~(1) that part of a policy~~ or ~~contract that is not guaranteed by the~~ 11
941		-	~~member insurer;~~ 12
942		-	~~(2)~~ that ~~part of the risk borne by the policy or contract owner;~~ 13
943		-	~~(3)~~ a policy or contract ~~of reinsurance, unless an assumption certificate~~ 14
944		-	~~has been issued;~~ 15
945		-	~~(4) that part of a policy or contract~~, ~~except for part of a policy or~~ 16
946		-	~~contract, including a rider,~~ ~~that provides long-term~~ ~~care or other health insurance~~ 17
947		-	~~benefits, to the extent that the rate of interest on which it is based,~~ or ~~the interest rate~~, 18
948		-	~~crediting~~ rate~~, or similar factor~~ determined by ~~use of an index or other external~~ 19
949		-	~~reference stated in~~ the ~~policy or contract employed in calculating returns or changes in~~ 20
950		-	~~value,~~ 21
951		-	~~(A) averaged over the period of four years before the date on~~ 22
952		-	~~which~~ the ~~member insurer becomes an impaired~~ or ~~insolvent insurer under this~~ 23
953		-	~~chapter~~, ~~whichever occurs first,~~ ~~exceeds~~ the ~~rate of interest determined by~~ 24
954		-	~~subtracting two percentage points from the published monthly average for that~~ 25
955		-	~~same four-year period or for~~ a ~~lesser period if the policy or contract was issued~~ 26
956		-	~~less than four years before the member insurer becomes an impaired or~~ 27
957		-	~~insolvent insurer under this chapter,~~ ~~whichever occurs first~~; ~~and~~ 28
958		-	(B) ~~on and after the date on which the member insurer becomes~~ 29
959		-	an ~~impaired or insolvent insurer under this chapter, whichever occurs first,~~ 30
960		-	~~exceeds the rate~~ of ~~interest determined by subtracting three percentage points~~ 31 34-LS0415\H
961		-	~~SB0132B~~ -29- ~~CSSB~~ 132~~(L&C)~~
	931	+	(2) that part of the risk borne by the policy or contract owner; 1
	932	+	(3) a policy or contract of reinsurance, unless an assumption certificate 2
	933	+	has been issued; 3
	934	+	(4) that part of a policy or contract, except for part of a policy or 4
	935	+	contract, including a rider, that provides long-term care or other health insurance 5
	936	+	benefits, to the extent that the rate of interest on which it is based, or the interest rate, 6
	937	+	crediting rate, or similar factor determined by use of an index or other external 7
	938	+	reference stated in the policy or contract employed in calculating returns or changes in 8
	939	+	value, 9
	940	+	(A) averaged over the period of four years before the date on 10
	941	+	which the member insurer becomes an impaired or insolvent insurer under this 11
	942	+	chapter, whichever occurs first, exceeds the rate of interest determined by 12
	943	+	subtracting two percentage points from the published monthly average for that 13
	944	+	same four-year period or for a lesser period if the policy or contract was issued 14
	945	+	less than four years before the member insurer becomes an impaired or 15
	946	+	insolvent insurer under this chapter, whichever occurs first; and 16
	947	+	(B) on and after the date on which the member insurer becomes 17
	948	+	an impaired or insolvent insurer under this chapter, whichever occurs first, 18
	949	+	exceeds the rate of interest determined by subtracting three percentage points 19
	950	+	from the most recent published monthly average; 20
	951	+	(5) a portion of a policy or contract issued to a plan or program of an 21
	952	+	employer, association, or similar entity to provide life, health, or an annuity benefit to 22
	953	+	an employee, member, or other person, to the extent that the plan or program is self-23
	954	+	funded or uninsured, including a benefit payable by the employer, association, or 24
	955	+	similar entity under 25
	956	+	(A) a multiple employer welfare arrangement as defined in 29 26
	957	+	U.S.C. 1002 (Employee Retirement Income Security Act of 1974); 27
	958	+	(B) a minimum premium group insurance plan; 28
	959	+	(C) a stop-loss group insurance plan; or 29
	960	+	(D) an administrative services only contract; 30
	961	+	(6) that part of a policy or contract that provides a dividend or 31 34-LS0415\G
	962	+	SB0132A -29- SB 132
962	963		New Text Underlined [DELETED TEXT BRACKETED]
963	964
964		-	~~from the most recent published monthly average;~~ 1
965		-	~~(5)~~ a ~~portion of a~~ policy or contract ~~issued~~ to ~~a plan~~ or ~~program of an~~ 2
966		-	~~employer, association,~~ or ~~similar entity to provide life, health, or an annuity benefit to~~ 3
967		-	~~an employee,~~ ~~member,~~ or ~~other person,~~ ~~to the extent that the plan or program is self-~~4
968		-	~~funded~~ or ~~uninsured, including~~ a ~~benefit payable by~~ the ~~employer, association, or~~ 5
969		-	~~similar entity under~~ 6
970		-	(A) a ~~multiple employer welfare arrangement as defined in 29~~ 7
971		-	~~U.S.C. 1002 (Employee Retirement Income Security Act~~ of ~~1974);~~ 8
972		-	~~(B) a minimum premium group insurance plan~~; 9
973		-	(C) a ~~stop-loss group insurance plan;~~ or 10
974		-	~~(D) an administrative services only contract~~; 11
975		-	(6) ~~that part of~~ a ~~policy or contract that provides a dividend or~~ 12
976		-	~~experience rating credit or voting rights~~, ~~or provides that a fee or allowance be paid to~~ 13
977		-	~~a person,~~ ~~including~~ the ~~policy or contract owner,~~ ~~in connection with the service to or~~ 14
978		-	~~administration of~~ the ~~policy or contract~~; 15
979		-	(7) ~~a policy~~ or ~~contract issued in this state by a member insurer at a~~ 16
980		-	~~time when it was not licensed~~ or ~~did not have a certificate~~ of ~~authority to issue the~~ 17
981		-	~~policy~~ or ~~contract in this state~~; 18
982		-	(8) ~~a person who is a payee or beneficiary~~ of a contract ~~owner who is a~~ 19
983		-	~~resident of this state if~~ the ~~payee~~ or ~~beneficiary is provided coverage~~ by ~~the association~~ 20
984		-	of ~~another state;~~ 21
985		-	~~(9) a person covered under (d) of this section if any coverage is~~ 22
986		-	~~provided by the association of another state to that person;~~ 23
987		-	(10) ~~an unallocated annuity contract issued to or in connection with a~~ 24
988		-	~~benefit plan protected under the United States Pension Benefit Guaranty Corporation,~~ 25
989		-	~~regardless of whether~~ the ~~United States Pension Benefit Guaranty Corporation has~~ 26
990		-	~~become liable to make any payments with respect to the benefit plan~~; 27
991		-	(11) ~~that part~~ of ~~an unallocated annuity~~ contract ~~that is not issued to or~~ 28
992		-	~~in connection with a specific employee, union, or association of natural persons~~ 29
993		-	~~benefit plan~~ or ~~a government lottery;~~ 30
994		-	(12) ~~that part of~~ a ~~policy~~ or ~~contract to the extent that assessments~~ 31 34-LS0415\H
995		-	~~CSSB~~ 132~~(L&C)~~ -30- ~~SB0132B~~
	965	+	experience rating credit or voting rights, or provides that a fee or allowance be paid to 1
	966	+	a person, including the policy or contract owner, in connection with the service to or 2
	967	+	administration of the policy or contract; 3
	968	+	(7) a policy or contract issued in this state by a member insurer at a 4
	969	+	time when it was not licensed or did not have a certificate of authority to issue the 5
	970	+	policy or contract in this state; 6
	971	+	(8) a person who is a payee or beneficiary of a contract owner who is a 7
	972	+	resident of this state if the payee or beneficiary is provided coverage by the association 8
	973	+	of another state; 9
	974	+	(9) a person covered under (d) of this section if any coverage is 10
	975	+	provided by the association of another state to that person; 11
	976	+	(10) an unallocated annuity contract issued to or in connection with a 12
	977	+	benefit plan protected under the United States Pension Benefit Guaranty Corporation, 13
	978	+	regardless of whether the United States Pension Benefit Guaranty Corporation has 14
	979	+	become liable to make any payments with respect to the benefit plan; 15
	980	+	(11) that part of an unallocated annuity contract that is not issued to or 16
	981	+	in connection with a specific employee, union, or association of natural persons 17
	982	+	benefit plan or a government lottery; 18
	983	+	(12) that part of a policy or contract to the extent that assessments 19
	984	+	required by AS 21.79.070 with respect to the policy or contract are preempted by law; 20
	985	+	(13) an obligation that does not arise under the express written terms of 21
	986	+	the policy or contract issued by the member insurer to the enrollee, certificate holder, 22
	987	+	contract owner, or policy owner, including, without limitation, 23
	988	+	(A) a claim based on marketing materials; 24
	989	+	(B) a claim based on a side letter or other document that was 25
	990	+	issued by the member insurer without meeting applicable policy or contract 26
	991	+	form filing or approval requirements; 27
	992	+	(C) a misrepresentation of or regarding policy or contract 28
	993	+	benefits; 29
	994	+	(D) an extra contractual claim; or 30
	995	+	(E) a claim for penalties or consequential or incidental 31 34-LS0415\G
	996	+	SB 132 -30- SB0132A
996	997		New Text Underlined [DELETED TEXT BRACKETED]
997	998
998		-	~~required by AS 21.79.070 with respect to the policy or contract are preempted by law~~; 1
999		-	(13) ~~an obligation~~ that ~~does not arise under~~ the ~~express written terms of~~ 2
1000		-	~~the policy or contract issued by the member insurer~~ to ~~the enrollee,~~ ~~certificate holder,~~ 3
1001		-	~~contract owner,~~ ~~or policy owner,~~ ~~including, without limitation,~~ 4
1002		-	~~(A) a claim based on marketing materials;~~ 5
1003		-	~~(B) a claim based on a side letter or other document that was~~ 6
1004		-	~~issued by the member insurer without meeting applicable~~ policy or contract 7
1005		-	~~form filing~~ or ~~approval requirements;~~ 8
1006		-	~~(C) a misrepresentation of~~ or ~~regarding~~ policy or contract 9
1007		-	~~benefits;~~ 10
1008		-	~~(D)~~ an ~~extra contractual claim; or~~ 11
1009		-	~~(E)~~ a ~~claim for penalties~~ or ~~consequential or incidental~~ 12
1010		-	~~damages;~~ 13
1011		-	~~(14) a contractual agreement~~ that ~~establishes the member insurer's~~ 14
1012		-	~~obligations to provide a book~~ value ~~accounting guaranty for defined contribution~~ 15
1013		-	~~benefit plan participants by reference to a portfolio of assets that is owned by~~ the 16
1014		-	~~benefit plan~~ or ~~its trustee,~~ ~~which, in each case, is not an affiliate~~ of ~~the member~~ 17
1015		-	~~insurer~~; 18
1016		-	(15) ~~that part of~~ a policy or contract ~~to the extent the part of the policy~~ 19
1017		-	~~or contract provides for interest~~ or other ~~changes~~ in ~~value to be determined by the use~~ 20
1018		-	~~of an index or other external reference stated in the policy or contract~~, ~~but that have~~ 21
1019		-	~~not been credited to the policy~~ or ~~contract, or as to which the policy or contract~~ 22
1020		-	~~owner's rights are subject to forfeiture, as of the date the member insurer becomes an~~ 23
1021		-	~~impaired or insolvent insurer under this chapter, whichever is earlier; if~~ a ~~policy's or~~ 24
1022		-	~~contract's interest or changes~~ in ~~value are credited less frequently than annually, then~~, 25
1023		-	~~for purposes~~ of ~~determining~~ the ~~values that have been credited and are not subject to~~ 26
1024		-	~~forfeiture under this paragraph, the interest~~ or ~~change in value determined by using the~~ 27
1025		-	~~procedures defined in the policy~~ or ~~contract shall be credited as if the contractual date~~ 28
1026		-	~~of crediting interest~~ or ~~changing values was the date of impairment or insolvency,~~ 29
1027		-	~~whichever is earlier~~, ~~and will not be subject to forfeiture;~~ 30
1028		-	~~(16) a policy~~ or ~~contract providing~~ a ~~hospital,~~ ~~medical, prescription~~ 31 34-LS0415\H
1029		-	~~SB0132B~~ -31- ~~CSSB~~ 132~~(L&C)~~
	999	+	damages; 1
	1000	+	(14) a contractual agreement that establishes the member insurer's 2
	1001	+	obligations to provide a book value accounting guaranty for defined contribution 3
	1002	+	benefit plan participants by reference to a portfolio of assets that is owned by the 4
	1003	+	benefit plan or its trustee, which, in each case, is not an affiliate of the member 5
	1004	+	insurer; 6
	1005	+	(15) that part of a policy or contract to the extent the part of the policy 7
	1006	+	or contract provides for interest or other changes in value to be determined by the use 8
	1007	+	of an index or other external reference stated in the policy or contract, but that have 9
	1008	+	not been credited to the policy or contract, or as to which the policy or contract 10
	1009	+	owner's rights are subject to forfeiture, as of the date the member insurer becomes an 11
	1010	+	impaired or insolvent insurer under this chapter, whichever is earlier; if a policy's or 12
	1011	+	contract's interest or changes in value are credited less frequently than annually, then, 13
	1012	+	for purposes of determining the values that have been credited and are not subject to 14
	1013	+	forfeiture under this paragraph, the interest or change in value determined by using the 15
	1014	+	procedures defined in the policy or contract shall be credited as if the contractual date 16
	1015	+	of crediting interest or changing values was the date of impairment or insolvency, 17
	1016	+	whichever is earlier, and will not be subject to forfeiture; 18
	1017	+	(16) a policy or contract providing a hospital, medical, prescription 19
	1018	+	drug, or other health care benefit in accordance with 42 U.S.C. 1395w-21 - 42 U.S.C. 20
	1019	+	1395w-28, 42 U.S.C. 1395w-101 - 42 U.S.C. 1395w-154, 42 U.S.C. 1396 - 42 U.S.C. 21
	1020	+	1396w-8, [42 U.S.C. 1395w-21 - 1395w-154] or federal regulations adopted under 22
	1021	+	those sections; 23
	1022	+	(17) a person who acquires rights to receive payments through a 24
	1023	+	structured settlement factoring transaction as defined in 26 U.S.C. 5891(c)(3)(A), 25
	1024	+	regardless of whether the transaction occurred before, on, or after 26 U.S.C. 26
	1025	+	5891(c)(3)(A) became effective; or 27
	1026	+	(18) structured settlement annuity benefits to which a payee or 28
	1027	+	beneficiary has transferred the payee's or beneficiary's rights in a structured settlement 29
	1028	+	factoring transaction as defined in 26 U.S.C. 5891(c)(3)(A), regardless of whether the 30
	1029	+	transaction occurred before, on, or after 26 U.S.C. 5891(c)(3)(A) became effective. 31 34-LS0415\G
	1030	+	SB0132A -31- SB 132
1030	1031		New Text Underlined [DELETED TEXT BRACKETED]
1031	1032
1032		-	~~drug, or other health care benefit in accordance with 42 U.S.C~~. ~~1395w-~~21 ~~- 42 U.S.C.~~ 1
1033		-	~~1395w-28, 42 U.S.C. 1395w-101~~ ~~- 42 U.S.C. 1395w-154, 42 U.S.C. 1396 - 42 U.S.C.~~ 2
1034		-	~~1396w-8~~, ~~[42 U.S.C. 1395w-21 - 1395w-154]~~ or ~~federal regulations adopted under~~ 3
1035		-	~~those sections;~~ 4
1036		-	~~(17) a person~~ who ~~acquires rights to receive payments through a~~ 5
1037		-	~~structured settlement factoring transaction~~ as ~~defined in 26 U.S.C. 5891(c)(3)(A),~~ 6
1038		-	~~regardless of whether the transaction occurred before~~, ~~on, or after 26 U.S.C.~~ 7
1039		-	~~5891(c)(3)(A) became effective;~~ or 8
1040		-	~~(18) structured settlement annuity benefits to which a payee or~~ 9
1041		-	~~beneficiary has transferred the payee's or beneficiary's rights in a structured settlement~~ 10
1042		-	~~factoring transaction as defined in 26 U.S.C. 5891(c)(3)(A), regardless of whether the~~ 11
1043		-	~~transaction occurred before~~, on, ~~or after 26 U.S.C. 5891(c)(3)(A) became effective.~~ 12
1044		-	* Sec. ~~58. AS 21.86.040(a) is amended to read:~~ 13
1045		-	~~(a)~~ The ~~governing body of~~ a ~~health maintenance organization may include~~ 14
1046		-	~~providers, or other individuals, or both~~. ~~At least one member [ONE-THIRD] of~~ the 15
1047		-	~~governing body must be~~ a ~~consumer to represent [CONSIST~~ ~~OF CONSUMERS~~ 16
1048		-	~~WHO ARE SUBSTANTIALLY REPRESENTATIVE OF]~~ ~~enrollees.~~ 17
1049		-	* Sec. ~~59. AS 21.86.060(b) is amended to read:~~ 18
1050		-	~~(b) In addition to basic health care services,~~ a health maintenance organization 19
1051		-	~~may provide,~~ ~~or arrange for, other health care~~ services on a ~~prepayment, fixed fee,~~ or 20
1052		-	~~other financial basis~~. 21
1053		-	* Sec. ~~60. AS 21.86.060~~ is ~~amended by adding new subsections~~ to ~~read:~~ 22
1054		-	~~(d) A health maintenance organization shall provide coverage for emergency~~ 23
1055		-	~~services, as that term is defined in~~ AS 21.07.~~250, that are necessary~~ to ~~screen and~~ 24
1056		-	~~stabilize~~ a ~~covered person at the health maintenance organization provider employee~~ 25
1057		-	~~or contracted provider level of cost sharing when~~ the ~~services are not provided by~~ a 26
1058		-	~~health maintenance organization provider~~. ~~The health maintenance organization may~~ 27
1059		-	~~require the transfer of a hospitalized covered person upon stabilization~~. 28
1060		-	~~(e)~~ A ~~health maintenance organization shall provide coverage at the health~~ 29
1061		-	~~maintenance organization provider employee or contracted provider level~~ of ~~cost~~ 30
1062		-	~~sharing upon referral from a~~ health ~~maintenance organization provider that states the~~ 31 34-LS0415\H
1063		-	~~CSSB~~ 132~~(L&C)~~ -32- ~~SB0132B~~
	1033	+	* Sec. 56. AS 21.86.040(a) is amended to read: 1
	1034	+	(a) The governing body of a health maintenance organization may include 2
	1035	+	providers, or other individuals, or both. At least one member [ONE-THIRD] of the 3
	1036	+	governing body must be a consumer to represent [CONSIST OF CONSUMERS 4
	1037	+	WHO ARE SUBSTANTIALLY REPRESENTATIVE OF] enrollees. 5
	1038	+	* Sec. 57. AS 21.86.060(b) is amended to read: 6
	1039	+	(b) In addition to basic health care services, a health maintenance organization 7
	1040	+	may provide, or arrange for, other health care services on a prepayment, fixed fee, or 8
	1041	+	other financial basis. 9
	1042	+	* Sec. 58. AS 21.86.060 is amended by adding new subsections to read: 10
	1043	+	(d) A health maintenance organization shall provide coverage for emergency 11
	1044	+	services, as that term is defined in AS 21.07.250, that are necessary to screen and 12
	1045	+	stabilize a covered person at the health maintenance organization provider employee 13
	1046	+	or contracted provider level of cost sharing when the services are not provided by a 14
	1047	+	health maintenance organization provider. The health maintenance organization may 15
	1048	+	require the transfer of a hospitalized covered person upon stabilization. 16
	1049	+	(e) A health maintenance organization shall provide coverage at the health 17
	1050	+	maintenance organization provider employee or contracted provider level of cost 18
	1051	+	sharing upon referral from a health maintenance organization provider that states the 19
	1052	+	covered person requires medically necessary services from a provider that is not a 20
	1053	+	health maintenance organization provider. The health maintenance organization may 21
	1054	+	deny the referral when an in-network provider is available to provide the medically 22
	1055	+	necessary services. 23
	1056	+	* Sec. 59. AS 21.96.090 is amended by adding a new subsection to read: 24
	1057	+	(g) A risk retention group shall file a report in accordance with 25
	1058	+	AS 21.09.210(a) and pay the tax required for a domestic and foreign insurer under 26
	1059	+	AS 21.09.210(b). 27
	1060	+	* Sec. 60. AS 21.96.120 is amended to read: 28
	1061	+	Sec. 21.96.120. Waiver for state innovation. The director may apply to a 29
	1062	+	federal agency for a waiver of federal law that relates to a health insurance 30
	1063	+	requirement, including applying to the United States Secretary of Health and 31 34-LS0415\G
	1064	+	SB 132 -32- SB0132A
1064	1065		New Text Underlined [DELETED TEXT BRACKETED]
1065	1066
1066		-	covered person requires medically necessary services from a provider that is not a 1
1067		-	health maintenance organization provider. The health maintenance organization may 2
1068		-	deny the referral when an in-network provider is available to provide the medically 3
1069		-	necessary services. 4
1070		-	* Sec. 61. AS 21.96.090 is amended by adding a new subsection to read: 5
1071		-	(g) A risk retention group shall file a report in accordance with 6
1072		-	AS 21.09.210(a) and pay the tax required for a domestic and foreign insurer under 7
1073		-	AS 21.09.210(b). 8
1074		-	* Sec. 62. AS 21.96.120 is amended to read: 9
1075		-	Sec. 21.96.120. Waiver for state innovation. The director may apply to a 10
1076		-	federal agency for a waiver of federal law that relates to a health insurance 11
1077		-	requirement, including applying to the United States Secretary of Health and 12
1078		-	Human Services under 42 U.S.C. 18052, as amended, for a waiver of applicable 13
1079		-	provisions of P.L. 111-148 (Patient Protection and Affordable Care Act), as amended, 14
1080		-	with respect to health insurance [COVERAGE] in the state for a plan year beginning 15
1081		-	on or after January 1, 2017. The director may implement a state plan meeting the 16
1082		-	waiver requirements in a manner consistent with state and federal law and as approved 17
1083		-	by the United States Secretary of Health and Human Services. 18
1084		-	* Sec. 63. AS 21.97.900 is amended by adding a new paragraph to read: 19
1085		-	(48) "motor vehicle" means a motor vehicle subject to registration 20
1086		-	under AS 28.10.011. 21
1087		-	* Sec. 64. AS 21.09.210(d); AS 21.27.020(g), 21.27.330(a); AS 21.34.030(d); 22
1088		-	AS 21.39.020(b)(4); AS 21.59.290(2); and AS 21.86.078 are repealed. 23
1089		-	* Sec. 65. The uncodified law of the State of Alaska is amended by adding a new section to 24
1090		-	read: 25
1091		-	APPLICABILITY. (a) AS 21.36.475(b), as amended by sec. 41 of this Act, applies to 26
1092		-	contracts entered into on or after the effective date of this Act. 27
1093		-	(b) AS 21.36.525, added by sec. 44 of this Act, applies to an insurance policy or 28
1094		-	contract issued, delivered, or renewed on or after the effective date of this Act. 29
1095		-	* Sec. 66. This Act takes effect immediately under AS 01.10.070(c). 30
	1067	+	Human Services under 42 U.S.C. 18052, as amended, for a waiver of applicable 1
	1068	+	provisions of P.L. 111-148 (Patient Protection and Affordable Care Act), as amended, 2
	1069	+	with respect to health insurance [COVERAGE] in the state for a plan year beginning 3
	1070	+	on or after January 1, 2017. The director may implement a state plan meeting the 4
	1071	+	waiver requirements in a manner consistent with state and federal law and as approved 5
	1072	+	by the United States Secretary of Health and Human Services. 6
	1073	+	* Sec. 61. AS 21.97.900 is amended by adding a new paragraph to read: 7
	1074	+	(48) "motor vehicle" means a motor vehicle subject to registration 8
	1075	+	under AS 28.10.011. 9
	1076	+	* Sec. 62. AS 21.09.210(d); AS 21.27.020(g), 21.27.330(a); AS 21.34.030(d); 10
	1077	+	AS 21.39.020(b)(4); AS 21.59.290(2); and AS 21.86.078 are repealed. 11
	1078	+	* Sec. 63. The uncodified law of the State of Alaska is amended by adding a new section to 12
	1079	+	read: 13
	1080	+	APPLICABILITY. (a) AS 21.36.475(b), as amended by sec. 40 of this Act, applies to 14
	1081	+	contracts entered into on or after the effective date of this Act. 15
	1082	+	(b) AS 21.36.525, added by sec. 42 of this Act, applies to an insurance policy or 16
	1083	+	contract issued, delivered, or renewed on or after the effective date of this Act. 17
	1084	+	* Sec. 64. This Act takes effect immediately under AS 01.10.070(c). 18