HB 508: "An Act relating to group health insurance; and providing for an effective date."

00HOUSE BILL NO. 508 01 "An Act relating to group health insurance; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 21.54.010 is amended to read: 04  Sec. 21.54.010. REQUIRED PROVISIONS OF GROUP POLICIES. Each 05 group disability insurance policy must contain in substance the following provisions: 06  (1) a provision that, in the absence of fraud, all statements made by 07 applicants or the policyholder or by an insured person shall be considered 08 representations and not warranties, and that a statement made for the purpose of 09 effecting insurance may not void the insurance or reduce benefits unless contained in 10 a written instrument signed by the policyholder or the insured person, a copy of which 11 has been furnished to the policyholder or to the insured person or the beneficiary of 12 the insured person; 13  (2) a provision that the insurer will furnish to the policyholder, for 14 delivery to each employee or member of the insured group, a statement in summary

01 form of the essential features of the insurance coverage of the employee or member 02 and to whom benefits are payable; if dependents are included in the coverage, only one 03 certificate need be issued for each family unit; 04  (3) a provision that to the group originally insured may be added from 05 time to time eligible new employees or members or dependents, as the case may be, 06 in accordance with the terms of the policy; 07  (4) a provision that the insured may transfer benefits to another 08 person if the other person is insured under the same policy and is the spouse or 09 dependent child of the insured. 10 * Sec. 2. This Act applies to a policy of group disability insurance that is entered into or 11 renewed on or after the effective date of this Act. 12 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).