00 SENATE BILL NO. 327 01 "An Act relating to motor vehicle insurance; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03  * Section 1. AS 21.89.020(c) is amended to read: 04 (c) An insurance company offering automobile liability insurance in this state 05 for bodily injury or death shall, initially and at each renewal, offer coverage prescribed 06 in AS 28.20.440 and 28.20.445 or AS 28.22 for the protection of the persons insured 07 under the policy who are legally entitled to recover damages for bodily injury or death 08 from owners or operators of uninsured or underinsured motor vehicles. The limit 09 written may not be less than the limit in AS 28.20.440 or AS 28.22.101. Coverage 10 required to be offered under this section must include the following options: 11 (1) policy limits equal to the limits voluntarily purchased to cover the 12 liability of the person insured for bodily injury or death; this paragraph does not  13 require coverage for punitive damages awarded against an uninsured or  14 underinsured person;  15 (2) except when the coverage consists of motorcycle liability 01 insurance, and except for a named insured required to file proof of financial 02 responsibility under AS 28.20 or an applicant required to file proof of financial 03 responsibility under AS 28.20, policy limits in the following amounts when these 04 limits are greater than those offered under (1) of this subsection: 05 (A) $100,000 because of bodily injury to or death of one person 06 in one accident, and, subject to the same limit for one person, $300,000 07 because of bodily injury to or death of two or more persons in one accident; 08 (B) $300,000 because of bodily injury to or death of one person 09 in one accident, and, subject to the same limit for one person, $500,000 10 because of bodily injury to or death of two or more persons in one accident; 11 (C) $500,000 because of bodily injury to or death of one person 12 in one accident, and, subject to the same limit for one person, $500,000 13 because of bodily injury to or death of two or more persons in one accident; 14 (D) $500,000 because of bodily injury to or death of one person 15 in one accident, and, subject to the same limit for one person, $1,000,000 16 because of bodily injury to or death of two or more persons in one accident; 17 (E) $1,000,000 because of bodily injury to or death of one 18 person in one accident, and, subject to the same limit for one person, 19 $2,000,000 because of bodily injury to or death of two or more persons in one 20 accident; 21 (3) other policy limits at the option of the insurer. 22  * Sec. 2. AS 21.89.020 is amended by adding new subsections to read: 23 (i) An insurance company offering automobile liability insurance in this state 24 for injury to or destruction of property shall, initially and at each renewal, offer, in 25 writing, to cover the insured person against medical expenses as a result of bodily 26 injury or death resulting from the operation of a motor vehicle. An insured who 27 declines coverage offered under this subsection shall sign a waiver of coverage. 28 (j) An insurance company providing comprehensive coverage for loss or 29 damage to a motor vehicle shall offer coverage for at least 50 percent of the cost of 30 replacing a safety belt in the covered motor vehicle. 31 (k) For purposes of this section, "automobile liability insurance" does not 01 include coverage provided only on an excess or umbrella basis. 02  * Sec. 3. AS 28.20.445(e) is amended to read: 03 (e) Uninsured and underinsured motorists coverage 04 (1) may not apply to bodily injury, sickness, disease, or death of an 05 insured or damage to or destruction of property of an insured until the limits of 06 liability of all bodily injury and property damage liability bonds and policies that 07 apply have been used up by payments, judgments, or settlements; 08 (2) shall be a single combined coverage; [AND] 09 (3) may be rejected by the insured in writing; if the insured has 10 rejected the coverage, the coverage shall not be included in any supplemental, 11 renewal, or replacement policy unless the insured subsequently requests the coverage 12 in writing; and  13 (4) need not insure against liability for punitive damages. 14  * Sec. 4. AS 28.22.101(e) is amended to read: 15 (e) A motor vehicle liability policy must provide coverage under 16 AS 28.22.201 - 28.22.231 in the amounts set out in (d) of this section for the 17 protection of the persons insured under the policy who are legally entitled to recover 18 damages from the owner or operator of an uninsured or underinsured motor vehicle 19 because of bodily injury or death, or damage to or destruction of property arising out 20 of the ownership, maintenance, or use of the uninsured or underinsured motor vehicle. 21 This subsection does not require coverage for punitive damages awarded against  22 an uninsured or underinsured person. 23  * Sec. 5. This Act takes effect July 1, 2002.