Legislature(2017 - 2018)
2018-03-05 Senate Journal
Full Journal pdf2018-03-05 Senate Journal Page 2181 SB 213 SENATE BILL NO. 213 BY THE SENATE 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 and Commerce Committee. 2018-03-05 Senate Journal Page 2182 The following fiscal information was published today: Fiscal Note No. 1, zero, Department of Commerce, Community and Economic Development Governor's transmittal letter dated March 1: Dear President Kelly: 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. 2018-03-05 Senate Journal Page 2183 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