Legislature(1999 - 2000)
01/24/2000 03:19 PM House L&C
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
January 24, 2000
3:19 p.m.
MEMBERS PRESENT
Representative Norman Rokeberg, Chairman
Representative Andrew Halcro, Vice Chairman
Representative Lisa Murkowski
Representative John Harris
Representative Tom Brice
Representative Sharon Cissna
Representative Jerry Sanders
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 190
"An Act relating to viatical settlement contracts."
- MOVED CSHB 190(L&C) OUT OF COMMITTEE
PREVIOUS ACTION
BILL: HB 190
SHORT TITLE: VIATICAL SETTLEMENTS
Jrn-Date Jrn-Page Action
4/13/99 794 (H) READ THE FIRST TIME - REFERRAL(S)
4/13/99 794 (H) L&C, JUD
4/19/99 (H) L&C AT 3:15 PM CAPITOL 17
4/19/99 (H) HEARD AND HELD
4/19/99 (H) MINUTE(L&C)
10/21/99 (H) L&C AT 1:30 PM ANCHORAGE LIO
10/21/99 (H) MINUTE(L&C)
1/14/00 (H) L&C AT 3:15 PM CAPITOL 17
1/14/00 (H) <Bill Postponed>
1/19/00 (H) L&C AT 3:15 PM CAPITOL 17
1/19/00 (H) Heard & Held
1/19/00 (H) MINUTE(L&C)
1/24/00 (H) L&C AT 3:15 PM CAPITOL 17
WITNESS REGISTER
VINCE USERA, Senior Securities Examiner
Division of Banking, Securities & Corporations
Department of Community and Economic Development
P.O. Box 110807
Juneau, Alaska 99801-0807
POSITION STATEMENT: Testified on HB 190, Version K.
KATY CAMPBELL, Actuary L/H
Division of Insurance
Department of Community and Economic Development
P.O. Box 110805
Juneau, Alaska 99801-0805
POSITION STATEMENT: Testified on HB 190, Version K.
BOB LOHR, Director
Division of Insurance
Department of Community and Economic Development
P.O. Box 110805
Juneau, Alaska 99801-0805
POSITION STATEMENT: Testified on HB 190, Version K.
ACTION NARRATIVE
TAPE 00-04, SIDE A
Number 0001
CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce
Standing Committee meeting to order at 3:19 p.m. Members present
at the call to order were Representatives Rokeberg, Halcro,
Murkowski, Harris, Brice and Cissna. Representative Sanders
arrived as the meeting was in progress.
[For the Department of Community and Economic Development
overview, see minutes for 3:50 p.m. on this same date.]
HB 190-VIATICAL SETTLEMENTS
Number 0122
CHAIRMAN ROKEBERG announced the first order of business would be
HOUSE BILL NO. 190, "An Act relating to viatical settlement
contracts." He indicated there would be a Department of
Community and Economic Development overview following the bill.
He said before the committee was a proposed committee substitute
(CS) for HB 190, Version K.
REPRESENTATIVE HALCRO made a motion to adopt Version K [1-
LS0576\K, Bannister/Ford, 1/24/00]. There being no objection,
Version K was adopted as a working draft.
CHAIRMAN ROKEBERG explained the changes reflected in Version K.
He referred to page 1, line 11 through page 2, line 1, beginning
with "The authority of the director". He said it is the "bright
line" language that sets forth what the Division of Insurance is
to accomplish. The next changes are on page 5, lines 4-5, and
page 6, lines 12-13, which exclude "with a catastrophic or life-
threatening chronic illness or condition" in the definition of a
viator. He explained:
Rather than getting into the complete bifurcation and
separation of the ... life settlement contracts and
viatical settlement contracts, we're going to combine,
for the purposes of statute -- I think the brevity in
keeping these as short as possible while still
protecting consumers is our goal here.
CHAIRMAN ROKEBERG noted that the final change is on page 5, lines
6-10, which adds a new subsection to include the "bright line"
language for the Division of Banking, Securities and Corporations
(DBSC).
Number 0434
REPRESENTATIVE MURKOWSKI asked what the definition of
"viaticating" is.
VINCE USERA, Senior Securities Examiner, Division of Banking,
Securities and Corporations, Department of Community and Economic
Development (DCED), came forward. He answered that the root is
"to viaticate". He does not have an exact definition. He said
it is defined in the regulations, but not precisely in the gerund
form. He indicated viaticating is the process of making an
investment in the life insurance of an individual for less than
the stated face value of the policy; the insured individual
receives that amount in exchange for the full death benefits
under the policy.
Number 0585
CHAIRMAN ROKEBERG added that viaticating is the taking of a life
insurance policy and turning it into a viatical settlement
contract.
REPRESENTATIVE BRICE asked if it takes place between a terminally
ill individual and the broker, or between the broker and the
final puchaser of the product.
CHAIRMAN ROKEBERG said that is why there are two "bright lines".
MR. USERA said viatication takes place between the insured or the
owner of the policy and the viatical settlement provider.
CHAIRMAN ROKEBERG stated that there is an amendment to Version K.
[Amendment 3]. The amendment was as follows:
Page 2, line 6, following "broker"
delete "subject to a risk" and insert "relative to
a subject"
He indicated the bill does not read well with the inclusion of
"subject to risk" and, therefore, it should be deleted.
Number 0738
KATY CAMPBELL, Actuary L/H, Division of Insurance, Department of
Community and Economic Development, came forward to speak on the
amendment to Version K. She explained the substitute language in
the amendment is consistent with what is used throughout their
statute. This is so that only individuals in Alaska are covered.
REPRESENTATIVE MURKOWSKI stated that it is a fine amendment.
Number 0824
REPRESENTATIVE HALCRO made a motion to adopt Amendment 3. There
being no objection, Amendment 3 was adopted.
BOB LOHR, Director, Division of Insurance, Department of
Community and Economic Development, testified via teleconference
from Anchorage. He said a revised zero fiscal note was prepared
at the request of the chairman. He stated:
The analysis is that Section 2 of the committee
substitute - and this is the language from the I
version - ... Section 2 of the committee substitute for
House Bill 190, at page 2, line 30 through 31, adds
"fee authority sufficient to cover the division's costs
of regulating settlement contracts, providers,
representatives, and brokers.
MR. LOHR noted that 17 brokers and 11 providers have been
identified nationally. The number that would choose to be
licensed in Alaska is unknown; however, the fees would be set to
cover the division's actual costs of regulation under the bill.
Number 0967
CHAIRMAN ROKEBERG asked if Mr. Lohr believes the fees collected
will offset any costs the division may incur.
MR. LOHR responded yes.
CHAIRMAN ROKEBERG indicated the committee's fiscal note, combined
with the fiscal note from the DBSC, would be adopted in lieu of
receipt of that from the Division of Insurance.
Number 1047
REPRESENTATIVE HALCRO made a motion to move CSHB 190(L&C),
Version K [1-LS0576\K, Bannister/Ford, 1/24/00], as amended, out
of the committee with individual recommendations and the attached
zero fiscal note. There being no objection, CSHB 190(L&C) was
moved out of the House Labor and Commerce Standing Committee.
Number 1062
The House Labor and Commerce Standing Committee stood at ease at
3:40 p.m. in preparation for the overview of the Department of
Community and Economic Development. [See minutes for 1/24/00 at
3:50 p.m.]
| Document Name | Date/Time | Subjects |
|---|