Legislature(1999 - 2000)
05/14/1999 02:23 PM Senate L&C
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SENATE LABOR AND COMMERCE COMMITTEE
May 14, 1999
2:23 P.M.>
MEMBERS PRESENT
Senator Jerry Mackie, Chairman
Senator Tim Kelly, Vice Chairman
Senator Dave Donley
Senator Loren Leman
Senator Lyman Hoffman
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 143(L&C)
"An Act relating to the executive officer employed for the Real
Estate Commission, to the real estate surety fund, and to employees
paid from money in the real estate surety fund."
-MOVED CSHB 143(L&C) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 158(L&C)
"An Act relating to the annual report of the director of the
division of insurance and to notice of cancellation of personal
insurance."
-MOVED CSHB 158(L&C) OUT OF COMMITTEE
HOUSE JOINT RESOLUTION NO. 10
Opposing the closure of any portion of Denali National Park and
Preserve to snowmachine access.
-SCHEDULED BUT NOT HEARD
PREVIOUS SENATE COMMITTEE ACTION
HB 143 - No previous action to consider.
HB 158 - No previous action to consider.
HJR 10 - No previous action to consider.
WITNESS REGISTER
Representative Rokeberg
State Capitol Bldg.
Juneau, AK 99811-1182
POSITION STATEMENT: Sponsor of HB 143 and HB 158.
Ms. Catherine Reardon, Director
Division of Occupational Licensing
Department of Commerce and Economic Development
P.O. Box 110806
Juneau, AK 99811-0806
POSITION STATEMENT: Supported HB 143.
Mr. John Ference, Director
Division of Insurance
Department of Commerce and Economic Development
P.O. Box 110805
Juneau, AK 99811-0805
POSITION STATEMENT: Commented on HB 158.
Mr. John George
National Association of Independent Insurers
3328 Fritz Cove Rd.
Juneau, AK 99801
POSITION STATEMENT: Supported HB 158.
ACTION NARRATIVE
TAPE 99-22, SIDE A
Number 001
HB 143-REAL ESTATE:SURETY FUND & COMMISSION
CHAIRMAN MACKIE called the Senate Labor and Commerce Committee
meeting to order at 2:23 p.m. and announced HB 143 to be up for
consideration.
REPRESENTATIVE ROKEBERG, sponsor of HB 143, said this is a
housekeeping bill that relates to the surety fund of the Real
Estate Commission. It makes modest changes to provide more
flexibility for use of the funds within the surety fund by removing
the lapsing requirement and allows the publications specialist to
be used not just for the educational requirement, but to back up
the executive administrator of the Commission. He explained that
the publications specialist, because they are paid by the surety
fund, can't assist the executive administrator when they are out of
town, because they can only do things that are related to
education. This bill allows that person to be able to help out.
The fund is calculated on an average basis and this increases the
efficiency of the fund.
MS. CATHERINE REARDON, Division of Occupational Licensing, said the
Department supports the bill.
SENATOR LEMAN moved to report HB 143 from committee with individual
recommendations. There were no objections and it was so ordered.
CHAIRMAN MACKIE announced HB 158 to be up for consideration.
REPRESENTATIVE ROKEBERG, sponsor, said this bill is important to
pass this year, because it meets the biennial licensing cycle. It
authorizes the Division of Insurance to make inquiries of the
health insurers as to the numbers of individual or group policies
that they write in this State. Representative Rokeberg said as a
member of the Labor and Commerce Committee for five years, he has
wondered who is really covered by insurance mandates, because they
sound real good, but have a negative impact on the affordability of
insurance to people. Most people are covered by ARITHA or self
insured plans which the insurance mandate bills don't reach out to.
There may be under 100,000 people who are actually affected by any
insurance mandate bill. This provision allows the Division to get
that information.
The second thing this bill does is because of a situation with an
83 year old neighbor who forgot to pay his premium and got in an
automobile accident. It requires the insurance industry to give
notice to everyone in the state that a person over 70 years of age
may request and have designated a third party to which their
insurance premiums and notifications will be mailed to. Industry
has also indicated to Representative Rokeberg that they are willing
to do this in their general publications on all insurance policies
sent within the state.
He noted that this only covers personal insurance like auto and
home owners. It's not meant to go into other areas.
Number 136
SENATOR KELLY asked why the age wasn't set at 65.
REPRESENTATIVE ROKEBERG said that statistics show that the onset of
ADRD type dementia disease start when you get into the older ages.
SENATOR DONLEY asked if section 2, repealing existing notice
requirements, changes any the notice requirements for anyone under
70 years of age.
MR. JOHN FERENCE, Division of Insurance, answered that it didn't
change those requirements. It adds the opportunity for an extra
notice for someone over 70 years of age.
Number 176
MR. JOHN GEORGE, National Association of Independent Insurers, said
that this version is better than the original bill which industry
did not support.
SENATOR DONLEY asked if section 2 overturns any court cases or
change any current rules as far as providing notice to the elderly.
MR. FERENCE answered no.
SENATOR LEMAN moved to report HB 158 from committee with individual
recommendations. There were no objections and it was so ordered.
CHAIRMAN MACKIE adjourned the meeting at 2:35 p.m.
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