04/04/1997 03:25 PM House L&C

 HB 218 - OMNIBUS INSURANCE REFORM                                           
                                                                               
 Number 2086                                                                   
                                                                               
 CHAIRMAN ROKEBERG announced the committee would address HB 218,               
 "An Act relating to regulation and examination of insurers and                
 insurance agents; relating to kinds of insurance; relating to                 
 payment of insurance taxes and to required insurance reserves;                
 relating to insurance policies; relating to regulation of capital,            
 surplus, and investments by insurers; relating to hospital and                
 medical service corporations; and providing for an effective date."           
                                                                               
 Number 2093                                                                   
                                                                               
 REPRESENTATIVE COWDERY made a motion to adopt the proposed                    
 committee substitute, dated 4/3/97, Version E, for the purpose of             
 discussion.                                                                   
                                                                               
 Number 2116                                                                   
                                                                               
 MARIANNE BURKE, Director, Division of Insurance, Department of                
 Commerce and Economic Development, came before the committee.  She            
 said the purpose of CSHB 218 is to bring some modernization to some           
 of the provisions, to clarify existing sections and to remove some            
 barriers that had been inadvertently included in Title 21 over the            
 years.  This would even the playing field for the people doing                
 business in the state.  She said the most significant issue has               
 resulted in a positive fiscal note of $485,000 per year.  Ms. Burke           
 said, "This is the result of asking for legislation that would                
 allow us to collect the premium tax on insurance premiums on a                
 quarterly basis rather than on a yearly basis.  We have received no           
 objection from anyone on this matter and, in fact, we've been told            
 it was inevitable and they were just waiting to when Alaska would             
 switch to quarterly basis.  I'd be happy to go into any detail if             
 this committee would like at this time or..."                                 
                                                                               
 Number 2173                                                                   
                                                                               
 CHAIRMAN ROKEBERG asked Ms. Burke to point out anything that might            
 generate any controversy.                                                     
                                                                               
 MS. BURKE said "We have received comments from the representative             
 agency for 60 percent of the health and life insurers and they are            
 in support of this and in fact the committee substitute is to                 
 recognize their minor points.  I am not aware of any controversial            
 sections at this time -- potentially controversial sections of                
 collection premium tax which we have canvased our jurors and they             
 are reluctant to give up their money or leave, but they recognized            
 it's necessary."                                                              
                                                                               
 CHAIRMAN ROKEBERG asked Ms. Burke if he is correct in saying the              
 department probably won't be bringing up another omnibus bill next            
 session.                                                                      
                                                                               
 MS. BURKE said that is a fair statement.                                      
                                                                               
 Number 2248                                                                   
                                                                               
 CHAIRMAN ROKEBERG called for an at-ease at 5:44 p.m.  He called the           
 meeting back to order at 5:47 p.m.                                            
                                                                               
 CHAIRMAN ROKEBERG indicated to Ms. Burke that the committee has not           
 received any letters of support or opposition to the bill at this             
 time.                                                                         
                                                                               
 Number 2266                                                                   
                                                                               
 MS. BURKE said, "To the best of my knowledge, the only letter that            
 has been received was received on the Senate side from the                    
 organization that I referred to that represents 60 percent of the             
 life and health writers.  And it states, and I will provide this              
 committee a copy of that letter, that if the minor tweaks are                 
 incorporated here and we're made, that they support this bill."               
                                                                               
 CHAIRMAN ROKEBERG stated CSHB 218(L&C) would be held.