CSHB 147(L&C): "An Act relating to the regulation of insurance, insurance licensing, surplus lines, insurer deposits, owner controlled and contractor controlled insurance programs, health discount plans, third-party administrators, and self-funded multiple employer welfare arrangements; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 147(L&C) 01 "An Act relating to the regulation of insurance, insurance licensing, surplus lines, 02 insurer deposits, owner controlled and contractor controlled insurance programs, health 03 discount plans, third-party administrators, and self-funded multiple employer welfare 04 arrangements; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 21.09.160 is amended to read: 07 Sec. 21.09.160. Notice of suspension or revocation and effect upon agent's 08 authority. (a) Upon suspending or revoking an insurer's certificate of authority the 09 director shall immediately give notice to the insurer and [TO ITS AGENTS OF 10 RECORD IN THIS STATE IN THE DIRECTOR'S OFFICE. THE DIRECTOR] shall 11 also publish notice of the revocation in one or more newspapers of general circulation 12 in this state. 13 (b) The suspension or revocation shall automatically suspend or revoke, as the 14 case may be, the authority of all its agents and managing general agents to act as
01 agents or managing general agents of the insurer in this state, and the insurer 02 [DIRECTOR] shall so state in the notice to agents and managing general agents 03 provided for in (c) [(a)] of this section. 04 * Sec. 2. AS 21.09.160 is amended by adding a new subsection to read: 05 (c) Upon notification of suspension or revocation of an insurer's certificate of 06 authority, the insurer shall immediately give notice of the suspension or revocation to 07 its agents and managing general agents operating in this state. 08 * Sec. 3. AS 21.12 is amended by adding a new section to read: 09 Sec. 21.12.140. Limitation on owner controlled and contractor controlled 10 insurance programs. (a) An owner controlled insurance program or a contractor 11 controlled insurance program must be approved by the director and shall be allowed 12 only for a major construction project. Owner controlled and contractor controlled 13 insurance programs are limited to property insurance as defined in AS 21.12.060 and 14 casualty insurance as defined in AS 21.12.070. 15 (b) In this section, an owner controlled or contractor controlled insured 16 program does not include 17 (1) builder's risk or course of construction insurance; 18 (2) insurance relating to the transportation of cargo or other property; 19 (3) insurance covering one or more affiliates, subsidiaries, partners, or 20 joint venture partners of a person; or 21 (4) insurance policies endorsed to name one or more persons as 22 additional insureds. 23 (c) In this section, 24 (1) "contractor" means a person who undertakes the performance of a 25 construction project for a project owner, its agent, or its representative; 26 (2) "contractor controlled insurance program" means an insurance 27 program where one or more insurance policies are placed by a contractor, its agent, its 28 representative, or its broker for the purpose of insuring the contractor and one or more 29 of the following: 30 (A) the project owner; 31 (B) a subcontractor;
01 (C) an architect; 02 (D) an engineer; or 03 (E) a person performing professional services; 04 (3) "major construction project" means the process of constructing a 05 structure, building, facility, or roadway or major renovation of more than 50 percent of 06 an existing structure, building, facility, or roadway under a contract cost of more than 07 $50,000,000 of a definite term at a geographically defined project site; 08 (4) "owner controlled insurance program" means an insurance program 09 where one or more insurance policies are placed by a project owner, its agent, its 10 representative, or its broker for the purpose of insuring the project owner and one or 11 more of the following: 12 (A) the contractor; 13 (B) a subcontractor; 14 (C) an architect; 15 (D) an engineer; or 16 (E) a person performing professional services; 17 (5) "project owner" means a person who, in the course of the person's 18 business, engages the service of a contractor for the purpose of working on a 19 construction project; 20 (6) "subcontractor" means a person to whom a contractor sublets all or 21 part of a contractor's initial undertaking. 22 * Sec. 4. AS 21.24.040(a) is amended to read: 23 (a) Deposits made in this state under this title shall be made through the office 24 of the director [IN SAFE DEPOSIT OR] under custodial arrangements as required or 25 approved by the director consistent with the purposes of the deposit, with an 26 established safe deposit institution, bank, or trust company located in this state 27 selected by the insurer with the director's approval. 28 * Sec. 5. AS 21.24.040(c) is amended to read: 29 (c) If of convenience to the insurer in the buying, selling, and exchange of 30 securities making up [COMPRISING] its deposit, and in the collection of interest and 31 other income currently accruing on the securities [THEREON], the insurer may, with
01 the director's advance written approval, deposit a portion of the securities under 02 custodial arrangements with an established bank or trust company located outside this 03 state, if receipts representing all the securities are issued by the custodial bank or trust 04 company and are held in [SAFE DEPOSIT OR] custody subject to the requirements of 05 (a) [AND (b)] of this section. 06 * Sec. 6. AS 21.24.130(d) is amended to read: 07 (d) If the insurer is subject to delinquency proceedings as defined in AS 21.78, 08 upon the order of a court of competent jurisdiction, the director shall yield the assets 09 and securities held on deposit under AS 21.09.090(b) to the receiver, conservator, 10 rehabilitator, or liquidator of the insurer, or to any other properly designated official or 11 officials who succeed to the management and control of the insurer's assets. The 12 director may release the deposit directly to the guaranty fund of which the 13 insurer is a member if the right to receive all or a portion of the deposit is 14 assigned to the guaranty fund. 15 * Sec. 7. AS 21.27.010(c) is amended to read: 16 (c) A third-party administrator [PERSON WHO FOR A RESIDENT OF 17 THIS STATE, OR FOR A RESIDENT OF ANOTHER JURISDICTION FROM A 18 PLACE OF BUSINESS IN THIS STATE, PERFORMS ADMINISTRATIVE 19 FUNCTIONS, INCLUDING CLAIMS ADMINISTRATION AND PAYMENT, 20 MARKETING ADMINISTRATIVE FUNCTIONS, PREMIUM ACCOUNTING, 21 PREMIUM BILLING, COVERAGE VERIFICATION, UNDERWRITING 22 AUTHORITY, OR CERTIFICATE ISSUANCE ONLY IN REGARD TO LIFE 23 INSURANCE, HEALTH INSURANCE, OR ANNUITIES] is not required to be 24 licensed as a managing general agent if the third-party administrator [PERSON] 25 (1) is registered under AS 21.27.630 - 21.27.660 [THIS CHAPTER 26 AS A THIRD-PARTY ADMINISTRATOR]; or 27 (2) only investigates and adjusts claims and is licensed under this 28 chapter as an independent adjuster. 29 * Sec. 8. AS 21.27.100 is repealed and reenacted to read: 30 Sec. 21.27.100. Appointment of insurance producer, managing general 31 agent, and reinsurance intermediary manager; acts of agent. (a) An appointment
01 is required to be made in accordance with this section when one or more of the 02 following has occurred: 03 (1) an admitted insurer appoints a managing general agent in this state 04 or relative to a subject resident, located, or to be performed in this state; 05 (2) a managing general agent appoints an insurance producer as its 06 subagent in this state or relative to subjects resident, located, or to be performed in this 07 state; 08 (3) a domestic reinsurer appoints a reinsurance intermediary manager; 09 (4) a reinsurance intermediary manager appoints an insurance producer 10 as its subagent in this state. 11 (b) An admitted insurer shall appoint an insurance producer as its agent in this 12 state or relative to a subject resident, located, or to be performed in this state not later 13 than 30 days after the date that a written agency contract is executed or the first 14 insurance application is submitted to the admitted insurer by the licensed insurance 15 producer. 16 (c) An individual in a firm who acts solely on behalf of a firm that is 17 appointed as an agent or a managing general agent on behalf of an admitted insurer 18 under this section may not be required to also have an appointment under this section 19 if the individual in the firm is licensed with that firm for a specific class of authority. 20 (d) The authorized or apparently authorized acts on behalf of an appointing 21 insurer of an insurance producer appointed under this section are considered the acts 22 of that insurer. 23 (e) An insurer and managing general agent shall maintain a current list of all 24 appointments made or required to be made under this section that identifies the 25 licensee's name, licensee's mailing address, license number, and effective date of 26 appointment. 27 (f) An insurance producer shall maintain a list of all appointments made or 28 required to be made under this section that identifies the insurer's name, insurer's 29 mailing address, and effective date of appointment. 30 (g) An insurer, managing general agent, or insurance producer shall reply in 31 writing within three working days to an inquiry of the director regarding an
01 appointment. 02 * Sec. 9. AS 21.27.110 is repealed and reenacted to read: 03 Sec. 21.27.110. Term of appointment. (a) An appointment under 04 AS 21.27.100 continues in force until the appointment is terminated in writing. 05 (b) If an insurer, reinsurer, or authorized representative discovers information 06 showing that the appointee whose appointment was terminated has engaged in an 07 activity identified in AS 21.27.410 during the period of the appointment, the insurer, 08 reinsurer, or authorized representative shall, on a form or in a format prescribed by the 09 director, promptly notify the director. 10 (c) Within 15 days after providing notification in accordance with (b) of this 11 section, the insurer, reinsurer, or authorized representative shall mail a copy of the 12 notification to the appointee at the last address on record with the insurer, reinsurer, or 13 authorized representative. The notice must be provided by certified mail, return 14 receipt requested, postage prepaid, or by overnight delivery using a nationally 15 recognized mail carrier. 16 (d) Within 30 days after the appointee receives notification in accordance with 17 (c) of this section, the appointee may file written comments concerning the substance 18 of the notification with the director and shall provide a copy of the written comments 19 to the insurer, reinsurer, or authorized representative. The written comments filed 20 with the director must be included with each report distributed or disclosed concerning 21 a reason about the termination of the appointment. 22 (e) If requested by the director, an insurer, a reinsurer, or an authorized 23 representative shall provide to the director additional information, documents, records, 24 or other data pertaining to a termination or activity of a licensee under this title. 25 (f) A notice of termination submitted to the director under this section must 26 include a statement of the reasons for the termination. A statement of the reasons for 27 termination is confidential and not subject to inspection and copying under 28 AS 40.25.110. A statement of reasons for the termination may not be admitted as 29 evidence in a civil action or an administrative proceeding against an insurer, reinsurer, 30 or authorized representative by or on behalf of a person affected by the termination, 31 except when the action or proceeding involves perjury, unsworn falsification, fraud, or
01 failure to comply with this subsection. 02 (g) If an insurer, a reinsurer, or an authorized representative fails to report as 03 required under this section or is found by a court to have knowingly or intentionally 04 falsely made that report, the director may, after notice and hearing, suspend or revoke 05 the license or certificate of authority of the insurer, reinsurer, or authorized 06 representative and may impose a penalty in accordance with AS 21.27.440. 07 * Sec. 10. AS 21.27.380(a) is amended to read: 08 (a) Except as provided in this title, the director may renew a license biennially 09 on a date set by the director if the licensee continues to be qualified under this chapter 10 and, on or before the close of business of the renewal date, meets all renewal 11 requirements established by regulation and pays the renewal license fees set under 12 AS 21.06.250 for each license to the director. A licensee is responsible for knowing 13 the date that a license lapses and for renewing a license before expiration. The 14 director shall notify the licensee of the license renewal [MAIL A RENEWAL 15 NOTICE TO THE LICENSEE'S CURRENT ADDRESS ON FILE WITH THE 16 DIRECTOR] 30 days before the renewal date. 17 * Sec. 11. AS 21.27.630(b) is amended to read: 18 (b) A third-party administrator may not transact business for a kind or class of 19 authority [INSURANCE] for which the person is not registered. 20 * Sec. 12. AS 21.27.630(c) is amended to read: 21 (c) Except as otherwise provided in this chapter, a third-party 22 administrator [A PERSON WHO PERFORMS ADMINISTRATIVE FUNCTIONS, 23 INCLUDING CLAIMS ADMINISTRATION AND PAYMENT, MARKETING 24 ADMINISTRATIVE FUNCTIONS, PREMIUM ACCOUNTING, PREMIUM 25 BILLING, COVERAGE VERIFICATION, UNDERWRITING AUTHORITY, OR 26 CERTIFICATE ISSUANCE IN REGARD TO INSURANCE AS A THIRD-PARTY 27 ADMINISTRATOR] shall be registered under AS 21.27.630 - 21.27.660 [AS A 28 THIRD-PARTY ADMINISTRATOR] unless the third-party administrator 29 [PERSON] only investigates and adjusts claims and is licensed under this chapter as 30 an independent adjuster. 31 * Sec. 13. AS 21.27.630 is amended by adding new subsections to read:
01 (k) An insurer that holds a certificate of authority issued by the director and is 02 in good standing under this title is not required to be registered as a third-party 03 administrator in this state. 04 (l) A person that is not required to be registered as a third-party administrator 05 under (e) - (k) of this section must file a certification with the director that the person 06 meets the requirements for exemption. 07 * Sec. 14. AS 21.27.650(a) is amended to read: 08 (a) An insurer may not transact business with a third-party administrator 09 unless 10 (1) the insurer holds a certificate of authority in this state, if required 11 under this title; 12 (2) the third-party administrator is registered under this chapter or the 13 third-party administrator has filed a certification with the director certifying that 14 [, WHEN] the third-party administrator is operating only for a foreign insurer other 15 than a self-funded multiple employer welfare arrangement regulated under 16 AS 21.85 and [,] is registered as a third-party administrator by the third-party 17 administrator's resident insurance regulator in a state that the director has determined 18 has enacted provisions substantially similar to those contained in AS 21.27.630 - 19 21.27.650 and that is accredited by the National Association of Insurance 20 Commissioners; 21 (3) the third-party administrator provides the director on January 1, 22 April 1, July 1, and October 1 of each year 23 (A) a list of current employees, identifying those transacting 24 business in this state or upon a subject resident, located or to be performed in 25 this state; 26 (B) a list of current insurers under contract; and 27 (C) other information the director may require; 28 (4) a written contract is in effect between the parties that establishes 29 the responsibilities of each party, indicates both parties' share of responsibility for a 30 particular function, and specifies the division of responsibilities; 31 (5) there is in effect a written contract between the insurer and third-
01 party administrator that contains the following provisions: 02 (A) the insurer may terminate the contract for cause upon 03 written notice sent by certified mail to the third-party administrator and may 04 suspend the underwriting authority of the third-party administrator during a 05 dispute regarding the cause for termination; but the insurer must fulfill all 06 lawful obligations with respect to policies affected by the written agreement, 07 regardless of any dispute between the insurer and the third-party administrator; 08 (B) the third-party administrator shall render accounts to the 09 insurer detailing all transactions and remit all money due under the contract to 10 the insurer at least monthly; 11 (C) all money collected for the account of an insurer shall be 12 held by the third-party administrator as a fiduciary; 13 (D) all payments on behalf of the insurer shall be held by the 14 third-party administrator as a fiduciary; 15 (E) the third-party administrator may not retain more than three 16 months estimated claims payments and allocated loss adjustment expenses; 17 (F) the third-party administrator shall maintain separate records 18 for each insurer in a form usable by the insurer; the insurer or its authorized 19 representative shall have the right to audit and the right to copy all accounts 20 and records related to the insurer's business; the director, in addition to other 21 authority granted in this title, shall have access to all books, bank accounts, and 22 records of the third-party administrator in a form usable to the director; any 23 trade secrets contained in books and records reviewed by the director, 24 including the identity and addresses of policyholders and certificate holders, 25 shall be kept confidential, except that the director may use the information in a 26 proceeding instituted against the third-party administrator or the insurer; 27 (G) the contract may not be assigned in whole or in part by the 28 third-party administrator; 29 (H) if the contract permits the third-party administrator to do 30 underwriting, the contract must include the following: 31 (i) the third-party administrator's maximum annual
01 premium volume; 02 (ii) the rating system and basis of the rates to be 03 charged; 04 (iii) the types of risks that may be written; 05 (iv) maximum limits of liability; 06 (v) applicable exclusions; 07 (vi) territorial limitations; 08 (vii) policy cancellation provisions; 09 (viii) the maximum policy term; and 10 (ix) that the insurer shall have the right to cancel or not 11 renew a policy of insurance subject to applicable state law; 12 (I) if the contract permits the third-party administrator to 13 administer claims on behalf of the insurer, the contract must include the 14 following: 15 (i) written settlement authority must be provided by the 16 insurer and may be terminated for cause upon the insurer's written 17 notice sent by certified mail to the third-party administrator or upon the 18 termination of the contract, but the insurer may suspend the settlement 19 authority during a dispute regarding the cause of termination; 20 (ii) claims shall be reported to the insurer within 30 21 days; 22 (iii) a copy of the claim file shall be sent to the insurer 23 upon request or as soon as it becomes known that the claim has the 24 potential to exceed an amount determined by the director or exceeds the 25 limit set by the insurer, whichever is less, involves a coverage dispute, 26 may exceed the third-party administrator's claims settlement authority, 27 is open for more than six months, involves extra contractual 28 allegations, or is closed by payment in excess of an amount set by the 29 director or an amount set by the insurer, whichever is less; 30 (iv) each party to the contract shall comply with unfair 31 claims settlement statutes and regulations;
01 (v) transmission of electronic data must occur at least 02 monthly if electronic claim files are in existence; and 03 (vi) claim files shall be the sole property of the insurer; 04 upon an order of liquidation of the insurer, the third-party administrator 05 shall have reasonable access to and the right to copy the files on a 06 timely basis; and 07 (J) the contract may not provide for commissions, fees, or 08 charges contingent upon savings obtained in the adjustment, settlement, and 09 payment of losses covered by the insurer's obligations; but a third-party 10 administrator may receive performance-based compensation for providing 11 hospital or other auditing services or may receive compensation based on 12 premiums or charges collected or the number of claims paid or processed. 13 * Sec. 15. AS 21.27.650 is amended by adding a new subsection to read: 14 (q) The director may, without advance notice or hearing, immediately suspend 15 by order the registration of a third-party administrator if the director finds that one or 16 more of the following circumstances exist: 17 (1) the third-party administrator is insolvent or impaired; 18 (2) a proceeding for bankruptcy, receivership, conservatorship, or 19 rehabilitation, or another delinquency proceeding regarding the third-party 20 administrator has been commenced in any state or by a governmental agency of 21 another jurisdiction; 22 (3) the third-party administrator is in an unsound condition, or is in a 23 condition or using methods or practices that render its further transaction of insurance 24 injurious to policy holders or the public. 25 * Sec. 16. AS 21.27 is amended by adding a new section to article 4 to read: 26 Sec. 21.27.660. Definitions. In AS 21.27.630 - 21.27.660, 27 (1) "insurer" includes the Comprehensive Health Insurance 28 Association created under AS 21.55.010 and a self-funded multiple employer welfare 29 arrangement regulated under AS 21.85; 30 (2) "transact" has the meaning given in AS 21.90.900. 31 * Sec. 17. AS 21.27.900 is amended by adding a new paragraph to read:
01 (33) "appointment" means an act by a person evidencing a grant of 02 authority to another to act on the grantor's behalf. 03 * Sec. 18. AS 21.34.040(d) is amended to read: 04 (d) A nonadmitted insurer may be eligible to provide coverage in this state if it 05 furnishes to the director a copy of its current annual statement that has been certified 06 by the insurer. Except in the case of an alien insurer, the [THE] statement shall be 07 provided not [NO] more than six months after the close of the period reported upon 08 and that is either filed with and approved by the regulatory authority in the domicile of 09 the nonadmitted insurer, or certified by an accounting or auditing firm licensed in the 10 jurisdiction of the insurer's domicile. An alien insurer shall provide the statement 11 not later than nine months after the close of the reporting period. In the case of 12 an insurance exchange, the statement may be an aggregate combined statement of all 13 underwriting syndicates operating during the period reported upon. 14 * Sec. 19. AS 21.34.100(a) is amended to read: 15 (a) When surplus lines insurance is placed, the surplus lines broker shall 16 promptly deliver to the named insured or the producing broker the policy or, if the 17 policy is not then available, a [CERTIFICATE,] cover note, binder, or other evidence 18 of insurance. The [CERTIFICATE,] cover note, binder, or other evidence of 19 insurance for the named insured shall be executed by the surplus lines broker and must 20 contain a summary of all material facts that would regularly be included in the policy, 21 the description and location of the subject of insurance, a general description of the 22 coverages of the insurance, the premium and rate charged and taxes to be collected 23 from the insured, the name and address of the insured, the name of each surplus lines 24 insurer and the percentage of the entire risk assumed by each, the name of the surplus 25 lines broker, and the license number of the surplus lines broker. 26 * Sec. 20. AS 21.34.100(f) is amended to read: 27 (f) A producing broker or other licensee may issue to a person, other than 28 the named insured, a certificate [EVERY CERTIFICATE ISSUED BY THE 29 PRODUCING BROKER OR OTHER LICENSEE] as evidence of insurance 30 negotiated, placed, or procured under this chapter. The certificate must bear the 31 name of the surplus lines broker, which may not be covered, concealed, or obscured
01 by the producing broker, and the following legend in at least 10-point type: "This is 02 evidence of insurance procured and developed under the Alaska Surplus Lines Law, 03 AS 21.34. It is not covered by the Alaska Insurance Guaranty Association Act, 04 AS 21.80." 05 * Sec. 21. AS 21.36.030(a) is amended to read: 06 (a) A person may not make, issue, circulate, broadcast, or have made, issued, 07 circulated, or broadcast an estimate, circular, statement, illustration, comparison, 08 assertion, or other written, electronic, or oral presentation that 09 (1) misrepresents the benefits, advantages, conditions, sponsorship, 10 source, or terms of an insurance policy; 11 (2) misrepresents the dividends or share of the surplus to be received 12 on an insurance policy; 13 (3) misrepresents an insurance policy as being a share or shares of 14 stock; 15 (4) makes a false or misleading statement as to the dividends or shares 16 of the surplus previously paid on an insurance policy; 17 (5) misrepresents or makes a misleading statement as to the financial 18 condition of an insurer or as to the legal reserve system upon which a life insurer 19 operates; 20 (6) uses a name or title of an insurance policy or class of insurance 21 policies misrepresenting its true nature; 22 (7) is a misrepresentation for the purpose of inducing, or that tends to 23 induce the lapse, forfeiture, exchange, conversion, or surrender of an insurance policy; 24 (8) is a misrepresentation for the purpose of effecting or tending to 25 effect a pledge or assignment of or loan against an insurance policy; 26 (9) appears to be an actual policy for a named individual when it is 27 merely an advertisement; 28 (10) does not clearly designate the name of the insurer providing the 29 coverage or about which the statements are made; or 30 (11) is in any other way misleading, false, or deceptive. 31 * Sec. 22. AS 21.36.030(a) is amended to read:
01 (a) A person may not make, issue, circulate, broadcast, or have made, issued, 02 circulated, or broadcast an estimate, circular, statement, illustration, comparison, 03 assertion, or other written, electronic, or oral presentation that 04 (1) misrepresents the benefits, advantages, conditions, sponsorship, 05 source, or terms of an insurance policy or a health discount plan; 06 (2) misrepresents the dividends or share of the surplus to be received 07 on an insurance policy; 08 (3) misrepresents an insurance policy as being a share or shares of 09 stock; 10 (4) makes a false or misleading statement as to the dividends or shares 11 of the surplus previously paid on an insurance policy; 12 (5) misrepresents or makes a misleading statement as to the financial 13 condition of an insurer or as to the legal reserve system upon which a life insurer 14 operates; 15 (6) uses a name or title of an insurance policy or class of insurance 16 policies misrepresenting its true nature; 17 (7) is a misrepresentation for the purpose of inducing, or that tends to 18 induce the lapse, forfeiture, exchange, conversion, or surrender of an insurance policy; 19 (8) is a misrepresentation for the purpose of effecting or tending to 20 effect a pledge or assignment of or loan against an insurance policy; 21 (9) appears to be an actual policy for a named individual when it is 22 merely an advertisement; 23 (10) does not clearly designate the name of the insurer providing the 24 coverage or about which the statements are made; [OR] 25 (11) is in any other way misleading, false, or deceptive; 26 (12) misrepresents a health discount plan as a form or type of 27 insurance; 28 (13) describes a health discount plan using common insurance 29 terminology; or 30 (14) states or implies that a health discount plan is underwritten 31 by or associated with an insurer.
01 * Sec. 23. AS 21.36 is amended by adding a new section to read: 02 Sec. 21.36.155. Health discount plans. (a) A person may not sell, market, 03 promote, advertise, or otherwise distribute a health discount plan unless 04 (1) each advertisement, policy, document, information, statement, or 05 other communication regarding the health discount plan and the plan itself contain a 06 statement, in bold and prominent type, that the health discount plan is not insurance; 07 (2) the discounts offered under the health discount plan are specifically 08 authorized by a contract with each provider of the services or supplies listed in 09 conjunction with the plan; 10 (3) the health discount plan states the name, address, and telephone 11 number of the administrator of the plan; 12 (4) the person makes readily available to the consumer a complete, 13 accurate, and up-to-date list of providers participating in the plan that offer discounted 14 health care services or supplies in the consumer's local area and the discounts offered 15 by the providers; 16 (5) the person provides the consumer the right to cancel the health 17 discount plan within 30 days after purchase of the plan; and 18 (6) the person provides the consumer with a full refund of all payments 19 made within 30 days after notification of cancellation of the plan under (5) of this 20 subsection. 21 (b) The director may adopt regulations to implement this section and to 22 establish additional requirements intended to prohibit unfair or deceptive practices 23 relating to health discount plans. 24 * Sec. 24. AS 21.36.190 is amended by adding a new subsection to read: 25 (f) Except as provided in AS 21.12.140, an insurer, whether an authorized or 26 unauthorized insurer may not underwrite an owner controlled insurance program or 27 contractor controlled insurance program. In this subsection, "owner controlled 28 insurance program" and "contractor controlled insurance program" have the meanings 29 given in AS 21.12.140. 30 * Sec. 25. AS 21.36.195 is amended to read: 31 Sec. 21.36.195. Surplus lines brokers and insurance producers; prohibited
01 acts. A surplus lines broker or an insurance producer may not fail to provide evidence 02 of insurance, [AFFIDAVITS,] filings, or reports, or fail to maintain the records, or fail 03 to pay the taxes and fees, required under AS 21.34. 04 * Sec. 26. AS 21.51 is amended by adding a new section to read: 05 Sec. 21.51.405. Rate requirements. Rates charged for a health insurance 06 policy may not be excessive, inadequate, or unfairly discriminatory. 07 * Sec. 27. AS 21.55.500(16) is amended to read: 08 (16) "plan administrator" means an [THE] eligible entity that is 09 licensed as a third-party administrator under AS 21.27 and is selected by the 10 board and approved by the director to administer a state plan; 11 * Sec. 28. AS 21.66.080(a) is amended to read: 12 (a) Every company, on or before March 1 of each year, shall furnish the 13 director or the director's designee a sworn statement of assets and liabilities, and of 14 all title premiums received by it during the preceding calendar year, setting out, among 15 other things, the amounts that have been set aside and held by it in an account required 16 under AS 21.18.073. The reporting format for a given year is the most recently 17 approved National Association of Insurance Commissioners Annual Financial 18 Statement blank form and instructions, supplemented for additional information as 19 required by the director. The director may require the statement to be filed on 20 electronic media. The statement must also show all unpaid losses and claims upon 21 title insurance policies of which the title insurance company has received due notice in 22 writing from or on behalf of the insured. With the filing of the statement, the title 23 insurance company shall pay a filing fee set under AS 21.06.250. 24 * Sec. 29. AS 21.66.085(b) is amended to read: 25 (b) A quarterly financial statement, if required, is due 45 [60] days after the 26 end of the quarter to which it applies. 27 * Sec. 30. AS 21.90.900(42) is amended to read: 28 (42) "third-party administrator" means a person who, for residents of 29 this state, or for residents of another jurisdiction from a place of business in this state, 30 performs administrative functions including claims administration and payment, 31 marketing administrative functions, premium accounting, premium billing, coverage
01 verification, underwriting authority, or certificate issuance in connection with life 02 insurance, annuities, or health insurance offered or provided by an insurer, or in 03 connection with coverage offered or provided by a self-funded multiple employer 04 welfare arrangement regulated under AS 21.85 or the Comprehensive Health 05 Insurance Association created under AS 21.55 [REGARD TO LIFE INSURANCE, 06 HEALTH INSURANCE, OR ANNUITIES]; 07 * Sec. 31. AS 21.90.900(43) is amended to read: 08 (43) "transact," with respect to insurance or the provision of coverage 09 for medical care, includes 10 (A) solicitation and inducement; 11 (B) preliminary negotiations; 12 (C) effectuation of a contract of insurance or the provision of 13 coverage for medical care; 14 (D) transaction of matters subsequent to effectuation of the 15 contract of insurance or the provision of coverage for medical care and 16 arising out of it; 17 * Sec. 32. AS 21.90.900 is amended by adding a new paragraph to read: 18 (45) "health discount plan" means a card, program, device, 19 arrangement, contract, or mechanism that purports to offer discounts or access to 20 discounts on health care services or supplies and that is not insurance or that does not 21 provide coverage for services or benefits regulated under AS 21.86 or AS 21.87. 22 * Sec. 33. AS 21.24.040(b); AS 21.27.330(b), and 21.27.650(p) are repealed. 23 * Sec. 34. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 TRANSITION: REGULATIONS. The director of insurance may proceed to adopt 26 regulations to implement the changes made by secs. 22, 23, and 32 of this Act. The 27 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 28 effective date of secs. 22, 23, and 32 of this Act. 29 * Sec. 35. Sections 22, 23, and 32 of this Act take effect July 1, 2005. 30 * Sec. 36. Except as provided in sec. 35 of this Act, this Act takes effect immediately under 31 AS 01.10.070(c).