Legislature(2001 - 2002)

04/11/2001 03:01 PM Senate JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Number 1180                                                                                                                     
                                                                                                                                
           HB 150-INSURANCE PREMIUMS FOR RENTAL VEHICLES                                                                    
                                                                                                                                
MR. CHARLIE  MILLER,  representing  the ANC Rental  Corporation  and                                                            
Hertz Rental  Corporation, said HB  150 takes care of an  unintended                                                            
omission  from  a  piece  of  legislation   that  went  through  the                                                            
Legislature  a  few years  earlier,  which  made the  public  policy                                                            
decision  on  how  to regulate  insurance  products  that  are  sold                                                            
incidental to the rental  contract.  That bill required an insurance                                                            
agent to hold  a premium in a separate fiduciary account.   This was                                                            
necessary  for an  agent's business  but insurance  products were  a                                                            
small portion  of the business and  are separate from the  contract.                                                            
HB 150 allows that requirement to be waived.                                                                                    
                                                                                                                                
MS. AMY ERICKSON,  staff to Representative Murkowski,  noted that HB
150 is  a cleanup  measure that  corrects a  requirement that  motor                                                            
vehicle  rental companies  hold  rental  car insurance  in  separate                                                            
trust  accounts.    This  requirement  was  unintended  and  HB  150                                                            
eliminates it.                                                                                                                  
                                                                                                                                
SENATOR  THERRIAULT asked  for the  identification  of the  original                                                            
legislation.                                                                                                                    
                                                                                                                                
MS.  ERICKSON  replied  it  was SB  87  from  1999,  which  required                                                            
licensing for rental car insurance.                                                                                             
                                                                                                                                
SENATOR THERRIAULT  read the last sentence from a  letter of support                                                            
from the Department  of Community  and Economic Development  (DCED),                                                            
which said:                                                                                                                     
                                                                                                                                
     Overall,  I believe that this  bill properly balances  the                                                                 
     public's  right  to be  protected  from loss  of coverage                                                                  
     after  premium   is  paid  while  keeping  the  costs   of                                                                 
     regulatory compliance reasonable.                                                                                          
                                                                                                                                
CHAIRMAN TAYLOR asked if  DCED supported HB 150 and someone from the                                                            
audience responded yes.                                                                                                         
                                                                                                                                
SENATOR  COWDERY  moved  HB  150  from  committee   with  individual                                                            
recommendations.    There  being no  objection,  HB 150  moved  from                                                            
committee.                                                                                                                      

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