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

00 HOUSE 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).