SB 106: "An Act relating to renewal of insurance coverage for homeowners and renters; and providing for an effective date."
00 SENATE BILL NO. 106 01 "An Act relating to renewal of insurance coverage for homeowners and renters; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 21.36.240 is amended to read: 05 Sec. 21.36.240. Failure to renew. An insurer may only fail to renew a 06 personal insurance policy on the policy's annual anniversary. An insurer may not fail 07 to renew a policy unless a written notice of nonrenewal is mailed to the named insured 08 under [AS REQUIRED BY] AS 21.36.260 at least 20 days for a personal insurance 09 policy, and at least 45 days for a business or commercial insurance policy, before the 10 [EXPIRATION] date [OF] the policy expires or [OF] the anniversary date of a policy 11 written for a term longer than one year or with no fixed expiration date. [IF NOTICE 12 OF NONRENEWAL IS NOT GIVEN AS REQUIRED BY THIS SECTION, THE 13 EXISTING POLICY SHALL CONTINUE UNTIL THE INSURER PROVIDES 14 NOTICE FOR THE TIME PERIOD REQUIRED BY THIS SECTION FOR THAT
01 POLICY. THIS SECTION DOES NOT APPLY 02 (1) IF THE INSURER HAS IN GOOD FAITH MANIFESTED ITS 03 WILLINGNESS TO RENEW; 04 (2) IN CASE OF NONPAYMENT OF PREMIUM FOR THE 05 EXPIRING POLICY; 06 (3) IF THE INSURED FAILS TO PAY THE PREMIUM AS 07 REQUIRED BY THE INSURER FOR RENEWAL; OR 08 (4) TO BUSINESS OR COMMERCIAL POLICIES PLACED 09 UNDER AS 21.34.] 10 * Sec. 2. AS 21.36.240 is amended by adding new subsections to read: 11 (b) In addition to the requirements in (a) of this section, an insurer may not fail 12 to renew a homeowner's insurance or renter's insurance policy unless a written notice 13 of nonrenewal is mailed to the division at least 20 days before the date the policy 14 expires or the anniversary date of a policy written for a term longer than one year or 15 with no fixed expiration date. In determining whether to renew a homeowner's 16 insurance or renter's insurance policy, an insurer may not use the first claim of the 17 insured made within the three-year period immediately preceding the policy's annual 18 anniversary. In this subsection, "homeowner's insurance" includes coverage for mobile 19 homeowners, manufactured homeowners, and condominium owners. 20 (c) If notice of nonrenewal is not given as required by this section, the existing 21 policy shall continue until the insurer provides notice for the period required by this 22 section for the policy. 23 (d) This section does not apply 24 (1) if the insurer has in good faith manifested its willingness to renew; 25 (2) in case of nonpayment of premium for the expiring policy; 26 (3) if the insured fails to pay the premium as required by the insurer for 27 renewal; or 28 (4) to business or commercial policies placed under AS 21.34. 29 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 APPLICABILITY. AS 21.36.240, as amended by this Act, applies to an insurance
01 policy or contract entered into or renewed on or after the effective date of secs. 1 - 3 of this 02 Act. 03 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 TRANSITION: REGULATIONS. The director of the division of insurance may adopt 06 regulations necessary to implement the changes made by this Act. The regulations take effect 07 under AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 08 implemented by the regulation. 09 * Sec. 5. Section 4 of this Act takes effect immediately under AS 01.10.070(c). 10 * Sec. 6. Except as provided in sec. 5 of this Act, this Act takes effect July 1, 2020.