CSSSSB 202(L&C): "An Act relating to insurance; amending Rules 79 and 82, Alaska Rules of Civil Procedure; and providing for an effective date."
00CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 202(L&C) 01 "An Act relating to insurance; amending Rules 79 and 82, Alaska Rules of 02 Civil Procedure; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. SHORT TITLE. This Act may be known as the Alaska Insurance Consumers 05 Protection Act. 06 * Sec. 2. PURPOSE. It is the purpose of this Act to amend existing law regarding 07 insurance in a manner that ensures that injured parties, whether first or third parties, are fairly 08 treated by insurers, fully compensated by applicable policy limits, and receive interest legally 09 due. 10 * Sec. 3. AS 21.36.125 is amended by adding new paragraphs to read: 11 (16) restrict or limit oral or written communications between 12 (A) an insurance producer, a claims adjuster, or other person 13 representing an insurer and an insured regarding a property or damage claim 14 or repair estimate; this paragraph does not apply to oral or written
01 communications between a person representing an insurer and an attorney 02 representing an insurer; or 03 (B) a person who repairs damage to an automobile covered 04 under a policy of the insurer and an insured; 05 (17) restrict or limit oral or written communications between a person 06 who repairs damage to property covered under a policy of the insurer, including 07 damage to an automobile, and a claimant; 08 (18) terminate a contract with an insurance producer if the termination 09 results from 10 (A) refusal to perform an unfair or deceptive claim settlement 11 practice identified under this chapter; or 12 (B) the reporting of an unfair or deceptive claim settlement 13 practice by the insurance producer to the director. 14 * Sec. 4. AS 21.36 is amended by adding new sections to read: 15 Sec. 21.36.212. Prejudgment interest. Prejudgment interest due an insured 16 or a third party from an insurer as a result of a claim covered under an insurance 17 policy is not subject to limitation or reduction by application of the policy limits. An 18 insurer is liable for prejudgment interest even if the payment would exceed applicable 19 policy limits. 20 Sec. 21.36.214. Payment of loss claims. (a) Using due diligence, an insurer 21 shall make an estimate of those covered losses that can be reasonably determined 22 within 15 days after the date the insurer receives notice of a claim under an insurance 23 policy. 24 (b) If a claim involves a covered loss that cannot be reasonably determined as 25 required under (a) of this section, the insurer shall review and estimate the covered 26 loss within 15 days after the date the loss becomes determinable. 27 (c) Within 30 days after an insurer receives notice of a claim, the insurer shall 28 pay the claimant the amount due under (a) of this section. A claim described under 29 (b) of this section shall be paid within 30 days after the loss becomes determinable. 30 An amount paid under (a) or (b) of this section shall be known as the undisputed 31 covered claims. The insurer shall also provide a written explanation of the payment
01 to the insured. The written explanation must include covered loss payments and any 02 loss not covered. An insurer may not require an insured to sign a release for claims 03 that are undisputed before payment by the insurer. 04 (d) If, after the insurer makes the payment of undisputed claims required under 05 (c) of this section, the insured obtains judgment for damages resulting from the 06 disputed claims and the damages awarded by the jury, court, appraiser, or arbitrator 07 are at least 10 percent greater than the undisputed claims payment made by the insurer, 08 the insurer, in addition to interest due under AS 09.30.070, shall also pay reasonable 09 actual attorney fees, actual costs incurred by the insured in obtaining the judgment, and 10 a penalty equal to at least 10 percent of the damages awarded in the action. 11 (e) If the director determines that an insurer has violated (a) - (c) of this 12 section, the director or an insured who failed to receive a covered loss payment as 13 required by (c) of this section may bring an action for bad faith claims practices 14 against the insurer. 15 (f) Subsection (d) of this section does not apply to or preclude a bad faith 16 claims action described under (e) of this section and does not preclude an award of 17 interest under AS 09.30.070 if damages are 10 percent or less than the undisputed 18 claims payment. 19 Sec. 21.36.216. Required telephone contact. An insurer who offers, issues, 20 or delivers an automobile liability insurance policy in this state against automobile 21 liability must provide a statewide toll-free telephone listing in addition to any local 22 listing. 23 * Sec. 5. AS 21.89.020(f) is amended to read: 24 (f) An automobile liability insurance policy must provide 25 (1) that all expenses and fees, not including counsel fees or adjuster 26 fees, incurred because of arbitration or mediation shall be paid by the insurer, if 27 applicable, from the claim; the arbitrator may, as a part of the arbitrator's 28 decision, require the insured to reimburse the insurer for expenses or fees paid 29 by the insurer; if the arbitrator awards expenses or fees to the insurer, the 30 insurer may deduct the awarded expenses or fees from an amount due the insured 31 [AS DETERMINED BY THE ARBITRATOR];
01 (2) liability coverage in the amount set out in AS 28.22.101(d) for 02 motor vehicles rented in the United States or Canada by a person insured under the 03 policy; 04 (3) physical damage coverage for motor vehicles rented in the United 05 States or Canada [,] if the policy provides physical damage coverage; if the insured 06 declines physical damage coverage, the insurer shall offer physical damage coverage 07 for rented vehicles; 08 (4) that payments from applicable coverage provided under (2) and (3) 09 of this subsection will be made in the following order of priority: 10 (A) from a policy or coverage purchased by the operator from 11 the person who has the vehicle available for rent; 12 (B) from a policy or coverage covering the operator of a rented 13 vehicle but not purchased from the person who has the vehicle available for 14 rent; and 15 (C) from a policy or coverage of the person who has the vehicle 16 available for rent ; 17 (5) medical payment coverage required under AS 28.20.447 or 18 AS 28.22.150 . 19 * Sec. 6. AS 21.89.020 is amended by adding a new subsection to read: 20 (i) The premium charged for an automobile liability insurance policy with a 21 term of less than 30 days may not exceed 200 percent of the pro rata premium charged 22 for longer term policies. 23 * Sec. 7. AS 28.20 is amended by adding a new section to read: 24 Sec. 28.20.447. Medical payments coverage requirements. An insurance 25 company offering automobile liability insurance in this state shall also offer coverage 26 for medical payments when the policy is initially offered. 27 * Sec. 8. AS 28.22 is amended by adding a new section to article 2 to read: 28 Sec. 28.22.150. Medical payments coverage requirements. An insurance 29 company offering automobile liability insurance in this state shall also offer coverage 30 for medical payments when the policy is initially offered. 31 * Sec. 9. AS 21.36.214(d), enacted by sec. 4 of this Act, amends Rule 79, Alaska Rules
01 of Civil Procedure, by providing for an award of costs that differs from an award under 02 Rule 79. 03 * Sec. 10. AS 21.36.214(d), enacted by sec. 4 of this Act, amends Rule 82, Alaska Rules 04 of Civil Procedure, by providing for attorney fee awards in certain cases that may differ from 05 those awarded under Rule 82. 06 * Sec. 11. APPLICABILITY. This Act applies to a 07 (1) policy of insurance entered into or renewed on or after the effective date 08 of this Act; 09 (2) civil action that accrues on or after the effective date of this Act. 10 * Sec. 12. This Act takes effect January 1, 1999.