SB 202: "An Act prohibiting insurer limits on free speech between an insured and certain other persons regarding automobile insurance damage claims; prohibiting certain motor vehicle liability insurance surcharges and premium increases; prohibiting an automobile insurer from requiring an insured to prepay certain costs of arbitration or mediation; relating to payment of covered loss claims by an insurer; requiring certain telephone listings by motor vehicle liability insurers; requiring certain provisions be included in a motor vehicle liability insurance policy; relating to payments made by a motor vehicle insurer for medical coverage; and amending Rules 79 and 82, Alaska Rules of Civil Procedure; and providing for an effective date."
00SENATE BILL NO. 202 01 "An Act prohibiting insurer limits on free speech between an insured and 02 certain other persons regarding automobile insurance damage claims; prohibiting 03 certain motor vehicle liability insurance surcharges and premium increases; 04 prohibiting an automobile insurer from requiring an insured to prepay certain 05 costs of arbitration or mediation; relating to payment of covered loss claims by 06 an insurer; requiring certain telephone listings by motor vehicle liability insurers; 07 requiring certain provisions be included in a motor vehicle liability insurance 08 policy; relating to payments made by a motor vehicle insurer for medical 09 coverage; and amending Rules 79 and 82, Alaska Rules of Civil Procedure; and 10 providing for an effective date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. SHORT TITLE. Sections 1 - 3 and 5 - 13 of this Act may be known as the 13 Alaska Consumers Automobile Insurance Reform Act. 14 * Sec. 2. AS 21.36.125 is amended by adding a new paragraph to read:
01 (16) restrict or limit oral or written communications between an insured 02 or a claimant and 03 (A) an agent, a claims adjuster, or other person representing an 04 insurer regarding an automobile damage claim or repair estimate; 05 (B) a person who repairs damage to an automobile covered 06 under a policy of the insurer. 07 * Sec. 3. AS 21.36.305(b) is amended to read: 08 (b) An insurer may not increase the premium or add a surcharge to a personal 09 automobile insurance policy because of 10 (1) the issuance of a citation for a moving traffic violation unless the 11 insured or another person who resides in the insured's household and is covered by the 12 policy has been convicted of the violation or has entered a plea of no contest to the 13 violation; or 14 (2) an accident involving an automobile driven by the insured or 15 another person who resides in the insured's household and is covered by the 16 policy unless the insured or the other person was at least 51 percent at fault. 17 * Sec. 4. AS 21.42 is amended by adding a new section to read: 18 Sec. 21.42.305. Required payment of loss claim. An insurer shall make a 19 covered loss payment within 90 days after the date the insurer determines that an 20 insured has a covered loss under an insurance policy. After the insurer makes the 21 payment required under this section, if the insured obtains judgment for damages 22 resulting from the covered loss and the judgment is at least 10 percent greater than the 23 covered loss payment made by the insurer, the insurer shall also pay reasonable actual 24 attorney fees and actual costs incurred by the insured in obtaining the judgment. 25 * Sec. 5. AS 21.89.020(f) is amended to read: 26 (f) An automobile liability insurance policy must provide 27 (1) that all expenses and fees, not including counsel fees or adjuster 28 fees, incurred because of arbitration or mediation shall be paid as determined by the 29 arbitrator; an insurer may not require an insured to pay costs of arbitration or 30 mediation before the arbitrator's or mediator's decision regarding costs; 31 (2) liability coverage in the amount set out in AS 28.22.101(d) for
01 motor vehicles rented in the United States or Canada by a person insured under the 02 policy; 03 (3) physical damage coverage for motor vehicles rented in the United 04 States or Canada [,] if the policy provides physical damage coverage; if the insured 05 declines physical damage coverage, the insurer shall offer physical damage coverage 06 for rented vehicles. 07 * Sec. 6. AS 21.89 is amended by adding a new section to read: 08 Sec. 21.89.027. Required telephone contact. A insurer who offers, issues, 09 or delivers an automobile liability insurance policy in this state or a person self-insured 10 against motor vehicle liability must provide a local or toll-free telephone listing in each 11 community in the state that has 25,000 or more residents. 12 * Sec. 7. AS 28.20.440 is amended by adding new subsections to read: 13 (l) A motor vehicle liability policy must contain coverage described in (d) of 14 this section for losses resulting from depreciation of property as a result of an accident 15 and require that any repair estimates include an estimate for losses resulting from 16 depreciation of property as a result of an accident. 17 (m) A motor vehicle liability policy must provide that, if a motor vehicle has 18 damage exceeding 50 percent of the value of the vehicle or has damage to the vehicle 19 frame exceeding 25 percent of the value of the vehicle, the person named as insured 20 may elect to have the vehicle repaired or to declare the vehicle a total loss. 21 * Sec. 8. AS 28.20 is amended by adding a new section to read: 22 Sec. 28.20.447. Medical payments coverage requirements. (a) If a motor 23 vehicle liability policy provides medical payments coverage and a medical payment 24 claim is denied, the insurer shall pay the insured's (1) actual costs, plus interest at the 25 rate imposed under AS 09.30.070(a); (2) reasonable actual attorney fees; and (3) all 26 arbitration and all court costs related to the proceeding if the claim is later determined 27 to be covered under the policy. 28 (b) If a separate premium is paid for medical payments coverage, payments 29 under that coverage may not be offset or deducted from the limits of uninsured or 30 underinsured motorist coverage otherwise available to the claimant. 31 * Sec. 9. AS 28.22.101 is amended by adding new subsections to read:
01 (g) A motor vehicle liability policy must contain coverage described in (d) of 02 this section for losses resulting from depreciation of property as a result of an accident 03 and require that any repair estimates include an estimate for losses resulting from 04 depreciation of property as a result of an accident. 05 (h) A motor vehicle liability policy must provide that, if a motor vehicle has 06 damage exceeding 50 percent of the value of the vehicle or has damage to the vehicle 07 frame exceeding 25 percent of the value of the vehicle, the person named as insured 08 may elect to have the vehicle repaired or to declare the vehicle a total loss. 09 * Sec. 10. AS 28.22 is amended by adding a new section to article 2 to read: 10 Sec. 28.22.150. Medical payments coverage requirements. (a) If a motor 11 vehicle liability policy provides medical payments coverage and a medical payment 12 claim is denied, the insurer shall pay the insured's (1) actual costs, plus interest at the 13 rate imposed under AS 09.30.070(a); (2) reasonable actual attorney fees; and (3) all 14 arbitration and all court costs related to the proceeding if the claim is later determined 15 to be covered under the policy. 16 (b) If a separate premium is paid for medical payments coverage, payments 17 under that coverage may not be offset or deducted from the limits of uninsured or 18 underinsured motorist coverage otherwise available to the claimant. 19 * Sec. 11. AS 21.42.305, enacted by sec. 4 of this Act, AS 28.20.447, enacted by sec. 8 20 of this Act, and AS 28.22.150, enacted by sec. 10 of this Act, amend Rule 79, Alaska Rules 21 of Civil Procedure, by providing for an award of costs that differs from an award under 22 Rule 79. 23 * Sec. 12. AS 21.42.305, enacted by sec. 4 of this Act, AS 28.20.447, enacted by sec. 8 24 of this Act, and AS 28.22.150, enacted by sec. 10 of this Act, amend Rule 82, Alaska Rules 25 of Civil Procedure, by providing for attorney fee awards in certain cases that may differ from 26 those awarded under Rule 82. 27 * Sec. 13. APPLICABILITY. This Act applies to a 28 (1) policy of insurance entered into or renewed on or after the effective date 29 of this Act; 30 (2) civil action that accrues on or after the effective date of this Act. 31 * Sec. 14. This Act takes effect January 1, 1999.