02/11/2004 03:20 PM House L&C

HB 403-ALASKA INSURANCE GUARANTY ASSOCIATION                                                                                  
                                                                                                                                
CHAIR ANDERSON announced  that the first order  of business would                                                               
be HOUSE BILL  NO. 403, "An Act relating to  the Alaska Insurance                                                               
Guaranty  Association; relating  to joint  insurance arrangements                                                               
and assessments  to the  association; relating  to the  powers of                                                               
the   Alaska   Industrial   Development  and   Export   Authority                                                               
concerning  the  association;  and  providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
Number 0135                                                                                                                     
                                                                                                                                
REPRESENTATIVE CARL  GATTO moved to adopt  the proposed committee                                                               
substitute  (CS),   Version  D,  labeled   23-GH2105\D,  Bullock,                                                               
2/11/04, as a work draft.                                                                                                       
                                                                                                                                
CHAIR ANDERSON objected for discussion purposes.                                                                                
                                                                                                                                
Number 0154                                                                                                                     
                                                                                                                                
SARAH  McNAIR-GROVE,  Property   Casualty  Actuary,  Division  of                                                               
Insurance,  Department  of  Community and  Economic  Development,                                                               
said  she hadn't  actually reviewed  Version D,  but thought  she                                                               
knew its intent.                                                                                                                
                                                                                                                                
CHAIR ANDERSON  asked what sections  had been removed  because of                                                               
the recommendations from the Association  of Alaska School Boards                                                               
and the  joint insurance associations  (JIAs).  He  recalled that                                                               
the self-insured  groups had requested  that certain  sections of                                                               
HB 403 be deleted.                                                                                                              
                                                                                                                                
MS. McNAIR-GROVE  said she believed  Sections 1,  3, 5, 6,  and 8                                                               
had been deleted.  If Version D  passes, then 2 JIAs and 24 or 25                                                               
self-insured  employers  wouldn't  be  subject  to  the  guaranty                                                               
association assessment.                                                                                                         
                                                                                                                                
REPRESENTATIVE  CRAWFORD related  his understanding  that if  the                                                               
self-insured  employers and  JIAs weren't  included in  the bill,                                                               
there wouldn't  be enough money  collected to solve  the problem.                                                               
He asked, "What's changed?"                                                                                                     
                                                                                                                                
MS. McNAIR-GROVE answered  that the division was  willing to take                                                               
those sections  out, since  those groups  wouldn't be  covered by                                                               
the guaranty association.  She  said the funds [from that portion                                                               
of the assessment] weren't significant,  and this action wouldn't                                                               
significantly impact the bill.                                                                                                  
                                                                                                                                
Number 0385                                                                                                                     
                                                                                                                                
CHAIR ANDERSON  announced that he  would hold HB 403  for further                                                               
discussion, with [the pending motion  to adopt] Version D and the                                                               
objection maintained.