SB 158: "An Act relating to motor vehicle liability insurance covering a person who has had the person's driver's license revoked."

00SENATE BILL NO. 158 01 "An Act relating to motor vehicle liability insurance covering a person who has 02 had the person's driver's license revoked." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 21.36.210(a) is amended to read: 05  (a) An insurer may not exercise its right to cancel a policy of personal 06 automobile insurance except for the following reasons: 07  (1) nonpayment of premium; or 08  (2) the driver's license or motor vehicle registration of either the named 09 insured or of an operator who resides in the same household as the named insured or 10 who customarily operates a motor vehicle insured under the policy has been under 11 suspension or revocation during the policy period or, if the policy is a renewal, during 12 its policy period or the 180 days immediately preceding its effective date; this 13 paragraph does not apply to administrative revocation as described under 14 AS 21.89.023.

01 * Sec. 2. AS 21.89 is amended by adding a new section to read: 02  Sec. 21.89.023. Motor vehicle insurance following driver's license 03 revocation. (a) Notwithstanding AS 21.36.210, an insurer offering insurance in this 04 state may not (1) refuse to issue or renew motor vehicle liability insurance coverage; 05 (2) cancel an existing policy of motor vehicle liability insurance; (3) deny a covered 06 claim; or (4) increase the premium on a motor vehicle liability insurance policy if the 07 refusal, cancellation, denial, or increase results only from the fact that the person's 08 driver's license was revoked under AS 28.15.183, 28.15.185, or 28.15.187. 09  (b) The provisions of (a) of this section may not prevent an insurer from 10 underwriting or rating for a loss experience in the same manner as it would for a 11 person who has not had the person's driver's license revoked under AS 28.15.183, 12 28.15.185, or 28.15.187. 13 * Sec. 3. This Act applies to a policy of insurance that is entered into or renewed on or 14 after the effective date of this Act.