Legislature(2017 - 2018)
2018-03-05 House JournalFull Journal pdf
2018-03-05 House Journal Page 2600 HB 401 HOUSE BILL NO. 401 by the House Rules Committee by request of the Governor, entitled: "An Act relating to insurance; relating to credit for reinsurance; insurance standard valuation; and providing for an effective date." was read the first time and referred to the Labor & Commerce Committee. The following fiscal note(s) apply: 1. Zero, Dept. of Commerce, Community, & Economic Development 2018-03-05 House Journal Page 2601 The Governor's transmittal letter dated March 1 follows: "Dear Speaker Edgmon: Under the authority of Article III, Section 18 of the Alaska Constitution, I am transmitting a bill to bring the insurance code into compliance with model laws adopted by the National Association of Insurance Commissioners (NAIC). These changes will assist the state in maintaining its accredited status with the NAIC and improve uniformity nationwide in the regulation of insurance. This bill makes changes to the insurance code relating to credit for reinsurance (AS 21.12), and the standard valuation law (AS 21.18). The bill also adds provisions granting the director the authority to adopt regulations under this section, provides a process for the director to certify an insurer as a reinsurer, imposes obligations on a ceding insurer to report to the director when certain levels of reinsurance are exceeded, and allows an assuming insurer that permanently stops underwriting new business to, subject to regulatory approval, reduce the trusteed surplus of a trust that secures its business. The changes relating to credit for reinsurance are in Section 1 of the bill; that section repeals and reenacts AS 21.12.020 relating to credit for reinsurance to conform to the NAIC model law. The changes relating to standard valuation law are in Sections 2 - 11 of the bill. The changes conform to the NAIC Standard Valuation Model Law. These changes are intended to allow life insurers to use "principle-based reserves" instead of the formula-based reserves required under current standard valuation law. By conforming to the changes to the NAIC model laws, our state's insurance laws will be consistent with national standards that all states are urged to adopt, and Alaska will maintain its accredited status. I urge your prompt and favorable action on this measure. Sincerely, /s/ Bill Walker Governor"