00                            SENATE BILL NO. 15                                                                          
01 "An Act relating to the tax on policy year premiums for life insurance policies; relating                               
02 to single and group life insurance policies; and relating to other types of insurance                                   
03 policies that insure the life of one or more individuals."                                                              
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 21.09.210(m) is amended to read:                                                                   
06            (m)  The tax imposed under this section for a single or group [AN                                        
07       INDIVIDUAL] life insurance policy or other type of insurance policy that insures                              
08       the life of one or more individuals shall be computed at the rate of                                          
09                 (1)  2.7 percent of policy year premium up to $100,000; and                                             
10                 (2)  0.08 [ONE-TENTH OF ONE] percent of policy year premium                                         
11       exceeding $100,000.                                                                                               
12    * Sec. 2. AS 21.48.100 is amended to read:                                                                         
13            Sec. 21.48.100. Provisions required in group contracts. A policy of group                                  
14       life insurance may not be delivered in this state unless it contains in substance the                             

01       provisions set out in AS 21.48.110 - 21.48.200 or provisions that, in the opinion of the                      
02       director, are more favorable to the persons insured, or at least as favorable to the                          
03       persons insured and more favorable to the policyholder; except that                                               
04                 (1)  AS 21.48.160 - 21.48.200 do not apply to a policy [POLICIES]                                   
05       issued to a creditor to insure a debtor [DEBTORS] of the creditor;                                            
06                 (2)  the standard provisions required for a single [INDIVIDUAL] life                                
07       insurance policy [POLICIES] do not apply to a group life insurance policy                             
08       [POLICIES];                                                                                                       
09                 (3)  if the group life insurance policy is on a plan of insurance other                                 
10       than the term plan, it must contain a nonforfeiture provision or provisions that, in the                      
11       opinion of the director, is or are equitable to the insured persons and to the                                
12       policyholder, but nothing in this paragraph may be construed to require that a group                          
13       life insurance policy contain [POLICIES CONTAIN] the same nonforfeiture                                       
14       provisions as are required for a single [INDIVIDUAL] life insurance policy                                
15       [POLICIES].                                                                                                       
16    * Sec. 3. AS 21.53.060(a) is amended to read:                                                                      
17            (a)  In addition to the requirements of AS 21.45, at the time of policy delivery,                            
18       a policy summary shall be included with a single [AN INDIVIDUAL] life insurance                               
19       policy if the policy or policy rider provides long-term care benefits. In the case of                             
20       direct response solicitations, the insurer shall deliver the policy summary upon the                              
21       applicant's request but, regardless of request, shall deliver a policy summary not later                          
22       than the time of policy delivery. The summary must include                                                        
23                 (1)  an explanation of how the long-term care benefits interact with                                    
24       other components of the policy, including deductions from death benefits;                                         
25                 (2)  an illustration of the amount and length of benefits, and guaranteed                               
26       lifetime benefits, if any, for each covered person;                                                               
27                 (3)  an explanation of each exclusion, reduction, and limitation on long-                               
28       term care benefits;                                                                                               
29                 (4)  if applicable to the policy type,                                                                  
30                      (A)  disclosure of the effects of exercising other rights under the                                
31            policy;                                                                                                      

01                      (B)  disclosure of guarantees related to the long-term care costs                                  
02            of insurance charges; and                                                                                    
03                      (C)  current and projected maximum lifetime benefits; and                                          
04                 (5)  if the director adopts a regulation that permits but does not require                              
05       inflation protection, and the policy does not provide for inflation protection, a                                 
06       statement that inflation protection is not available under the policy.                                            
07    * Sec. 4. AS 21.53.200(4) is amended to read:                                                                      
08                 (4)  "long-term care insurance"                                                                         
09                      (A)  means an individual or group insurance policy, including                                      
10            single or group [AND INDIVIDUAL] life insurance and individual or group                              
11            [OR] annuities, a subscriber's contract, fraternal benefit society certificate, or                           
12            rider advertised, marketed, offered, or designed to provide coverage for not                                 
13            less than 12 consecutive months for each covered person on an expense                                        
14            incurred, indemnity, prepaid, or other basis, for one or more necessary or                                   
15            medically necessary diagnostic, preventive, therapeutic, rehabilitative,                                     
16            maintenance, or personal care services that are provided in a setting other than                             
17            an acute care unit of a hospital, and includes a policy or rider that provides for                           
18            payment of benefits based on cognitive impairment or loss of functional                                      
19            capacity;                                                                                                    
20                      (B)  does not include                                                                              
21                           (i)  an insurance policy, subscriber's contract, or                                           
22                 fraternal benefit society certificate that is offered primarily to provide                              
23                 basic Medicare supplement coverage, basic hospital expense coverage,                                    
24                 basic medical-surgical expense coverage, hospital confinement                                           
25                 indemnity coverage, major medical expense coverage, disability                                          
26                 insurance and related asset protection coverage, catastrophic coverage,                                 
27                 comprehensive coverage, accident only coverage, specified disease or                                    
28                 specified accident coverage, or limited benefit health coverage; or                                     
29                           (ii)  a life insurance policy that accelerates the death                                      
30                 benefit specifically for one or more of the qualifying events of terminal                               
31                 illness, medical conditions requiring extraordinary medical                                             

01                 intervention, or permanent institutional confinement and that provides                                  
02                 the option of a lump-sum payment for that benefit if the benefit and the                                
03                 eligibility for the benefit under the life insurance policy are not                                     
04                 conditioned on the receipt of long-term care.                                                           
05    * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to                          
06 read:                                                                                                                   
07       APPLICABILITY. (a) AS 21.09.210(m), as amended by sec. 1 of this Act, applies to                                  
08 policy year premiums for a calendar year that begins after December 31, 2015.                                           
09       (b)  AS 21.48.100, as amended by sec. 2 of this Act, and AS 21.53.060(a), as amended                              
10 by sec. 3 of this Act, apply to an insurance policy delivered on or after the effective date of                         
11 this Act.