04/14/2000 01:30 PM House JUD

SB 177-INSURANCE TRADE PRACTICES                                                                                              
                                                                                                                                
Number 0493                                                                                                                     
                                                                                                                                
CHAIRMAN  KOTT announced  the next  order  of business  is CS  FOR                                                              
SENATE  BILL NO.  177(L&C), "An  Act relating  to insurance  trade                                                              
practices; and providing for an effective date."                                                                                
                                                                                                                                
SENATOR DAVE  DONLEY, Alaska State  Legislature, said that  SB 177                                                              
brings Alaska  into alignment with  the majority of states  as far                                                              
as  allowing  their  Division of  Insurance  to  take  enforcement                                                              
action to protect the individual  consumer regarding violations of                                                              
the  Unfair  Claims  Practices Act.    He  noted  that SB  177  is                                                              
supported  completely by  the Division  of Insurance  and makes  a                                                              
very important change to maintain  the status quo for the issue of                                                              
proximate  cause  to  protect  homeowners  all over  Alaska.    He                                                              
explained  that  the purpose  is  to  make sure  that  homeowners'                                                              
insurance protection policies pay  for damages [as expected by the                                                              
homeowner and  for which he/she had]  paid.  He commented  that SB
  is a  good,  positive,  and  balanced pro-consumer  piece  of                                                              
legislation.   He  informed the  committee  that SB  177 has  been                                                              
amended several  times through the  process to make it  clear that                                                              
the bill does  not create a private  cause of action and  that the                                                              
enforcement of  the Unfair Claims  Practices Act is  the exclusive                                                              
jurisdiction of the  Division of Insurance.  He  indicated that SB
 is long overdue.                                                                                                            
                                                                                                                                
Number 0560                                                                                                                     
                                                                                                                                
CHAIRMAN  KOTT indicated  that  he  will hold  SB  177 over  until                                                              
tomorrow.                                                                                                                       
                                                                                                                                
SENATOR DONLEY informed  the committee that he  supports the House                                                              
Labor & Commerce version of SB 177.                                                                                             
                                                                                                                                
CHAIRMAN  KOTT   asked  if  that   included  the   amendment  that                                                              
Representative Rokeberg has.                                                                                                    
                                                                                                                                
SENATOR DONLEY  clarified that  his support  does not include  the                                                              
new  amendment presented  by  Representative  Rokeberg.   However,                                                              
Representative Rokeberg's  amendment has a piece  to which Senator                                                              
Donley and the division are amenable.                                                                                           
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  inquired  as  to what  piece  they  are                                                              
referring to.                                                                                                                   
                                                                                                                                
CHAIRMAN KOTT answered  that the committee will  find out tomorrow                                                              
and indicated that HCS CSSB 177(L&C) will be held over.