2000-01-21                     Senate Journal                      Page 2029
SB 209                                                                       
SENATE BILL NO. 209 BY THE SENATE RULES COMMITTEE                              
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
An Act relating to the method of payment of fees                              
and adoption of regulations under AS 21; relating to                           
orders under AS 21 regarding risk based capital                                
instructions; relating to accounting standards for                             
insurance companies; amending the definitions of                               
creditable coverage and late enrollees in AS                                   
21.54; relating to requirements for small employer                             
insurers; relating to requirements for issuance of                             
new voting securities by an insurance company;                                 
requiring health care insurance coverage for                                   
reconstructive surgery following mastectomy;                                   
requiring guaranteed renewability of and certification                         
of coverage regarding certain individual health                                
insurance policies; and providing for an effective                             
date.                                                                          
                                                                               
was read the first time and referred to the Labor and Commerce,                
Health, Education and Social Services and Finance Committees.                  
                                                                               
Zero fiscal note published today from Department of Community and              
Economic Development.                                                          
                                                                               
Governors transmittal letter dated January 20:                                 
                                                                               
Dear President Pearce:                                                         
                                                                               
I am transmitting a bill relating to financial regulation of insurance         
companies and amending the state's 1997 insurance act to comply                
with federal requirements for health care insurance involving                  
individuals, groups, and small employers.                                      
                                                                               
                                                                               

2000-01-21                     Senate Journal                      Page 2030
SB 209                                                                       
The bill would amend the insurance code with respect to the                    
accounting standards followed by insurers when reporting annually              
on their financial condition to the director of the division of                
insurance. Under the bill, certain statutes related to the reporting of        
insurance company assets and liabilities are amended to eliminate              
provisions that are obsolete or that conflict with new accounting              
standards adopted by the National Association of Insurance                     
Commissioners (NAIC). Existing law requires insurers doing business            
in this state to adhere to such standards. This also ensures Alaska            
will maintain its accreditation as a state with effective insurer              
solvency regulation.                                                           
                                                                               
With respect to health care insurance, the bill puts Alaska in                 
compliance with the federal Health Insurance Portability and                   
Accountability Act of 1996 requiring guaranteed renewal of                     
individual policies. Although the legislature three years ago passed           
amendments to the insurance code to conform to this federal law,               
that legislation relied on covering the market through the existing            
high-risk pool. But that did not take into consideration those who do          
not participate in the pool. This bill corrects that omission. In              
addition, this bill incorporates a 1998 federal mandate under the              
Women's Health and Cancer Rights Act requiring insurers to cover               
reconstructive surgery following mastectomies.                                 
                                                                               
This bill also includes several clean-up items to correct inadvertent          
errors and omissions and clarify changes made in the 1997 state law.           
                                                                               
I urge your prompt and favorable action on this measure.                       
                                                                               
					Sincerely,                                                                
					/s/                                                                       
					Tony Knowles                                                              
					Governor