Legislature(2001 - 2002)
03/27/2001 01:30 PM Senate L&C
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE LABOR & COMMERCE COMMITTEE
March 27, 2001
1:30 pm
MEMBERS PRESENT
Senator Randy Phillips, Chair
Senator Alan Austerman
Senator John Torgerson
Senator Bettye Davis
MEMBERS ABSENT
Senator Loren Leman
COMMITTEE CALENDAR
HOUSE BILL NO. 150
"An Act relating to insurance premiums for rental motor vehicles."
MOVED HB 150 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
HB 150 - No previous action to consider.
WITNESS REGISTER
Ms. Amy Erickson
Staff to Representative Murkowski
State Capitol Bldg.
Juneau AK 99811
POSITION STATEMENT: Commented on HB 150 for sponsor.
Ms. Deane Tesnar
Division of Insurance
Department of Community and Economic Development
P.O. Box 110805
Juneau AK 99811
POSITION STATEMENT: Supported HB 150.
Mr. Charlie Miller
ANC Rental/Hertz
P.O. Box 102286
Anchorage AK 99510
POSITION STATEMENT: Supported HB 150.
Mr. Charles Rubin
Rubin and Firella LLT
New York, NY
POSITION STATEMENT: Supported HB 150.
ACTION NARRATIVE
TAPE 01-13, SIDE A
Number 001
HB 150-INSURANCE PREMIUMS FOR RENTAL VEHICLES
CHAIRMAN RANDY PHILLIPS called the Senate Labor & Commerce
Committee meeting to order at 1:30 pm. and announced HB 150 to be
up for consideration.
MS. AMY ERICKSON, Staff to Representative Murkowski, said:
In 1999, the legislature enacted SB 87, which required
the Division of Insurance to license motor vehicle rental
agencies that sell insurance products to rental car
customers. After implementation, it became clear that
while this requirement was appropriate for full-time
producers, it was not practical for the incidental sale
of insurance products by rental car agencies.
The funds generated by premium insurance are minimal in
relation to the entire rental transaction, but the
current statute requires that each location maintain a
trust account and an account for premiums. Because of
nominal funds generated, the statute requiring rental
agencies to maintain separate accounts is unnecessary and
impractical. The statute does not contain an exemption
from this requirement or provide discretion by the
director or enforcement of these requirements.
HB 150 eliminates the requirement of separate trust
accounts and frees rental car agencies from the
unnecessary requirement to hold insurance premiums in
separate trust accounts. Customers will see no change in
how they buy add-on insurance products. The bill balances
protection of the consumer with the benefits of
reasonable compliance.
MS. DEANE TESNER, Division of Insurance, supported HB 150.
MR. CHARLIE MILLER, ANC Rental and Hertz Rental Car Corporations,
supported HB 150. He said, "It is a good clean up measure for what
was intended in SB 87."
Number 500
MR. CHARLES RUBIN, Rubin and Firella, LLT., said they are general
counsel for Alamo, National, Hertz, Avis and others. He supported
HB 150 saying it just cleaned up the intent of SB 87.
SENATOR TORGERSON moved to pass HB 150 from committee with
individual recommendations with the accompanying $0 fiscal note.
There were no objections and it was so ordered.
CHAIRMAN PHILLIPS adjourned the meeting at 1:37 pm.
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