HB 403-LIFE & HEALTH INSURANCE GUARANTY ASSN.                                                                     
                                                                                                                                
4:06:16 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the next order  of business  would be                                                               
HOUSE  BILL NO.  403, "An  Act relating  to the  Alaska Life  and                                                               
Health  Insurance  Guaranty  Association; and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
4:06:33 PM                                                                                                                    
                                                                                                                                
SORCHA  HAZELTON, Staff,  Representative Sam  Kito, Alaska  State                                                               
Legislature, introduced the  changes to HB 403.   She paraphrased                                                               
from the  explanation of changes [included  in committee packet],                                                               
which reads as follows [original punctuation provided]:                                                                         
                                                                                                                                
     Section 1, Page 1, Line 11: Adds the word "member" to                                                                    
     conform to model language use of the term "member                                                                          
     insurer" throughout the bill.                                                                                              
                                                                                                                                
     Section 14, Page 12, Line 16: Removes the phrase "and                                                                    
     the receivership court" to conform to model language.                                                                      
                                                                                                                                
     Section 56, Page 33, Line 22: Adds "a hospital or                                                                        
     medical service corporation subscriber contract" into                                                                      
     the definition of a health benefit plan to conform to                                                                      
     model language.                                                                                                            
                                                                                                                                
4:07:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  moved to adopt  CS for  HB 403 as  a working                                                               
document for the committee.  There  being no objection, it was so                                                               
ordered.                                                                                                                        
                                                                                                                                
CHAIR KITO stated the version being considered is version J.                                                                    
                                                                                                                                
4:08:10 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  stated the bill has  an effective date of  January 1,                                                               
2019.  He clarified that due  to the effective date, any guaranty                                                               
claims on  issues that have taken  place now would not  be pulled                                                               
into the new law, so any  failures would be incorporated into the                                                               
revised  guaranty  association.    He asked  Ms.  Wing-Heier  for                                                               
confirmation.                                                                                                                   
                                                                                                                                
4:09:03 PM                                                                                                                    
                                                                                                                                
LORI WING-HEIER,  Director, Division of Insurance,  Department of                                                               
Commerce, Community & Economic  Development (DCCED), answered she                                                               
believed the  bill has  an effective  date of  July 1,  2018, not                                                               
January 2019.   She said the intention he had  stated is correct.                                                               
She  added new  members would  not  be subject  to the  [indisc.]                                                               
assessment.                                                                                                                     
                                                                                                                                
4:09:57 PM                                                                                                                    
                                                                                                                                
CHAIR KITO closed public testimony on HB 403.                                                                                   
                                                                                                                                
4:10:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  moved to  report the  CS for  HB 403  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.  There being no objection, it was so ordered.