HB 262: "An Act relating to credit life and disability insurance; and providing for an effective date."
00HOUSE BILL NO. 262 01 "An Act relating to credit life and disability insurance; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 21.57.020 is amended to read: 05 Sec. 21.57.020. APPLICABILITY. All life insurance and all disability 06 insurance in connection with loans or other credit transactions shall be subject to the 07 provisions of this chapter except insurance issued as [IN CONNECTION WITH A 08 LOAN OR OTHER CREDIT TRANSACTION OF FIVE YEARS OR MORE 09 DURATION INVOLVING A LOAN OR OTHER CREDIT TRANSACTION THAT 10 EXCEEDS $5,000; INSURANCE MAY NOT BE SUBJECT TO THE PROVISIONS 11 OF THIS CHAPTER IF THE ISSUANCE OF THE INSURANCE IS] an isolated 12 transaction on the part of the insurer and not related to an agreement or a plan for 13 insuring debtors of the creditor. 14 * Sec. 2. AS 21.57 is amended by adding a new section to read:
01 Sec. 21.57.095. REQUIRED LOSS RATIO. In each calendar year, an insurer 02 shall adjust rates to maintain a loss ratio of not less than 70 percent of all premiums 03 received for credit life and disability insurance. 04 * Sec. 3. This Act takes effect January 1, 1994.