CSHB 175(L&C)-INSURANCE  5:50:16 PM CHAIR PASKVAN announced HB 175 to be up for consideration. [CSHB 175(L&C) was before the committee.] CONRAD JACKSON, staff to Representative Olson, sponsor of HB 175, introduced Ms. Hall for the explanation. 5:51:34 PM LINDA HALL, Director, Division of Insurance, Department of Commerce, Community & Economic Development (DCCED), said she considers a number of things in the bill "clean up;" several are streamlining processes about issuing licenses to out of state adjusters, providing third-party administrators be responsible for their employees, and accepting another regulator's non- resident felony evaluations. Other things clarify deposits of domestic and other states' insurers and allow a little more flexibility for the regulatory with domestic insured deposits. "Working day" is defined uniformly now throughout the title. Three sections are uniformity provisions that allow ratio analysis in examinations submitted to the director from the National Regulatory Association to be held confidential; currently just the financial material is held. They have updated products that can be sold for a limited lines travel license. MS. HALL remarked that she just received notification that Alaska is in compliance with all of the National Association of Insurance Commissioners (NAIC) uniformity standards. Two new issues are policy calls in sections 11 and 17. Section 11 of this bill permits a director to order a summary suspension of a producer license if there is a finding that the protection of the public requires emergency action. This past year she had two instances of the worst agent behavior she had ever seen in Alaska. A licensee was taking money from his clients and using it and not purchasing insurance. Her investigation found 72 victims who were left with virtually no financial protection should they have a loss. They have filed criminal charges that have 32 felony counts. This is behavior that if they could not do a summary suspension this individual could have gone on taking money as long as he had asked for a hearing and that order was stayed. The bill has enough protections to prevent summary suspensions from being abused. The reasons for doing it are subject to the same reasons in statute for denial or revocation of a license today; so it doesn't broaden anything, but it stops behavior that harms the public. 5:55:39 PM Section 17 allows a health insurance plan to reward a wellness program without making it considered as a rebate program or discrimination. Its requirements would meet Health Insurance Portability and Accountability Act (HIPAA) standards and other non discriminatory requirements. The bill defines eligibility for a high risk pool in the same way as the Permanent Fund Dividend does today, a uniformity issue. Also, the hospital and medical service corporations make guaranteed renewability of individual health plans mandatory; today it is done for group plans; they also make guaranteed renewability applicable to individual health plans. 5:56:55 PM CHAIR PASKVAN said the summary suspension for egregious conduct makes a lot of sense, as do the rewards for wellness. He then closed public testimony. 5:57:38 PM SENATOR MEYER moved to report CSHB 175(L&C) from committee with individual recommendations and attached fiscal note(s). There were no objections and it was so ordered.