00                            HOUSE BILL NO. 195                                                                          
01 "An Act relating to coverage offered under an individual policy of health care                                          
02 insurance; and providing for an effective date."                                                                        
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 21.09.210(b) is amended to read:                                                                  
05            (b)  Except as provided under AS 21.54.180, each [EACH] insurer, and each                                
06       formerly authorized insurer with respect to premiums received while an authorized                                 
07       insurer in this state, shall pay a tax on the total direct premium income received during                         
08       the year ending on the preceding December 31 and paid for the insurance of property                               
09       or risks resident or located in the state, other than wet marine and transportation                               
10       insurance, after deducting from the total direct premium income the applicable                                    
11       cancellations, returned premiums, the unabsorbed portion of any deposit premium, all                              
12       policy dividends, unabsorbed premiums refunded to policyholders, refunds, savings,                                
13       savings coupons, and other similar returns paid or credited to policyholders with                                 
14       respect to their policies.  Deductions may not be made of cash surrender value of                                 

01       policies.  Considerations received on annuity contracts are not included in the direct                            
02       premium income and are not subject to tax.  The tax shall be paid to the director at                              
03       least annually but not more often than once each quarter on the dates specified by the                            
04       director.  The method of payment must be by the electronic or other payment method                                
05       specified by the director.  Except as provided under (m) of this section, the tax is                              
06       computed at the rate of                                                                                           
07                 (1)  for domestic and foreign insurers, except hospital and medical                                     
08       service corporations, 2.7 percent;                                                                                
09                 (2)  for hospital and medical service corporations, six percent of their                                
10       gross premiums less claims paid.                                                                                  
11    * Sec. 2.  AS 21.54 is amended by adding a new section to read:                                                    
12            Sec. 21.54.180.  Individual health care insurance coverage.                                                
13       Notwithstanding AS 21.42.347, 21.42.353, 21.42.355, 21.42.363, 21.42.365,                                         
14       21.42.375, 21.42.380, 21.42.385, 21.42.390, 21.42.392, 21.42.395, and 21.42.400, a                                
15       health care insurer may offer an individual a health care insurance plan that does not                            
16       include health insurance coverage required under AS 21.42.347, 21.42.353, 21.42.355,                              
17       21.42.363, 21.42.365, 21.42.375, 21.42.380, 21.42.385, 21.42.390, 21.42.392,                                      
18       21.42.395, and 21.42.400; however, the coverage may be offered as optional coverage.                              
19       A health insurance plan that does not include health insurance coverage required under                            
20       AS 21.42.347, 21.42.353, 21.42.355, 21.42.363, 21.42.365, 21.42.375, 21.42.380,                                   
21       21.42.385, 21.42.390, 21.42.392, 21.42.395, and 21.42.400 is not subject to the tax on                            
22       premiums imposed under AS 21.09.210.                                                                              
23    * Sec. 3.  This Act takes effect July 1, 2003.