Legislature(2001 - 2002)
05/04/2001 05:22 PM Senate JUD
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 184-INSURANCE CODE AMENDMENTS
SENATOR TAYLOR announced he had suggested technical amendments. In
a hearing on SB 138, which is the same bill, the department
explained the changes to the insurance code. He asked for an
explanation of the differences between the two bills.
MR. BOB LOHR, Director of the Alaska Division of Insurance, spoke
in support of the bill. Privacy provisions received the most
discussion on SB 138 and the House version of the bill incorporated
language on privacy that was as restrictive as the National
Conference of Insurance Legislators model language. This is a
higher standard for protection of privacy than the Gramm-Leach-
Bliley Act Title 5 privacy provisions provided by SB 138 as it
moved from Senate Labor & Commerce. There is little opposition to
the House version of SB 138.
Other changes include authorizing the division to update its
insurance investment regulations, which have not been updated for
many years. There are many sound investment products on the market
that are categorized as suspect because they weren't in existence
when the laws were adopted. The House version would allow those
standards to be updated by regulation and outdated investment
regulatory language would be repealed resulting in the National
Association of Insurance Commissioners model law on investment
regulation.
Another change deals with trust accounts. Currently the division
requires licensed trust account producers (agents and brokers) to
ensure that money going to an insurance company for a policy is
protected from embezzlement. There is reciprocity with the Federal
National Association of Registered Agents and Brokers and if Alaska
maintains its present requirements for its trust accounts, it would
probably be declared non-reciprocal and not helped to qualify to
avoid federal takeover of licensing. The House version of SB 138
would give the division the authority to adopt regulations to have
trust accounts but would not be required to do so. As a result, if
the reciprocity provision arises, there is a mechanism in the bill
to deal with it.
Committee members were also provided with a list of technical
changes to HB 184.
CHAIRMAN TAYLOR called for a motion to amend.
SENATOR COWDERY moved amendment one to insert the technical
amendments submitted by the division.
CHAIRMAN TAYLOR objected for the purpose of an explanation.
MS. KATIE CAMPBELL, Life & Health Actuary for the Division of
Insurance, gave an explanation of the non-substantive changes.
Copies of these technical changes are found in amendment one of
the bill file.
CHAIRMAN TAYLOR asked for additional objections and there were
none. Amendment 1 passed. There was no other testimony.
SENATOR COWDERY moved SCS CSHB 184(JUD) from committee with
individual recommendations.
There was no objection and Chairman Taylor moved the bill from
committee. [Before adjournment Chairman Taylor announced HB 184
would be held in committee.]
HB 184-INSURANCE CODE AMENDMENTS
CHAIRMAN TAYLOR announced he would hold HB 184 in committee [see
hearing of HB 184 above.] and adjourned the meeting at 7:22 p.m.
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