Enrolled SB 106: Relating to renewal of insurance coverage for homeowners and renters; and providing for an effective date.

00Enrolled SB 106 01 Relating to renewal of insurance coverage for homeowners and renters; and providing for an 02 effective date. 03 _______________ 04 * Section 1. AS 21.36.240 is amended to read: 05 Sec. 21.36.240. Failure to renew. An insurer may only fail to renew a 06 personal insurance policy on the policy's annual anniversary. An insurer may not fail 07 to renew a policy unless a written notice of nonrenewal is mailed to the named insured 08 under [AS REQUIRED BY] AS 21.36.260 at least 20 days for a personal insurance 09 policy, and at least 45 days for a business or commercial insurance policy, before the 10 [EXPIRATION] date [OF] the policy expires or [OF] the anniversary date of a policy 11 written for a term longer than one year or with no fixed expiration date. [IF NOTICE 12 OF NONRENEWAL IS NOT GIVEN AS REQUIRED BY THIS SECTION, THE 13 EXISTING POLICY SHALL CONTINUE UNTIL THE INSURER PROVIDES 14 NOTICE FOR THE TIME PERIOD REQUIRED BY THIS SECTION FOR THAT

01 POLICY. THIS SECTION DOES NOT APPLY 02 (1) IF THE INSURER HAS IN GOOD FAITH MANIFESTED ITS 03 WILLINGNESS TO RENEW; 04 (2) IN CASE OF NONPAYMENT OF PREMIUM FOR THE 05 EXPIRING POLICY; 06 (3) IF THE INSURED FAILS TO PAY THE PREMIUM AS 07 REQUIRED BY THE INSURER FOR RENEWAL; OR 08 (4) TO BUSINESS OR COMMERCIAL POLICIES PLACED 09 UNDER AS 21.34.] 10 * Sec. 2. AS 21.36.240 is amended by adding new subsections to read: 11 (b) In addition to the requirements in (a) of this section, an insurer may not fail 12 to renew a homeowner's insurance policy based solely on the earliest claim made by 13 the insured within the three-year period immediately preceding the policy's annual 14 anniversary if the claim arises from a criminal act committed by a third party. In this 15 subsection, "homeowner's insurance" includes coverage described in 16 AS 21.36.460(i)(7)(B) and (C). 17 (c) If notice of nonrenewal is not given as required by this section, the existing 18 policy shall continue until the insurer provides notice for the period required by this 19 section for the policy. 20 (d) This section does not apply 21 (1) if the insurer has in good faith manifested its willingness to renew; 22 (2) in case of nonpayment of premium for the expiring policy; 23 (3) if the insured fails to pay the premium as required by the insurer for 24 renewal; or 25 (4) to business or commercial policies placed under AS 21.34. 26 * Sec. 3. AS 21.36.310(4) is amended to read: 27 (4) "personal insurance" has the meaning given in AS 21.36.460(i) 28 [(A) MEANS PERSONAL AUTOMOBILE INSURANCE, 29 OR INSURANCE COVERING 30 (i) LOSS OF OR DAMAGE TO REAL PROPERTY 31 THAT IS USED PREDOMINANTLY FOR RESIDENTIAL

01 PURPOSES AND THAT DOES NOT CONSIST OF MORE THAN 02 FOUR DWELLING UNITS; 03 (ii) LOSS OF OR DAMAGE TO PERSONAL 04 PROPERTY, INCLUDING PERSONAL EFFECTS, HOUSEHOLD 05 FURNITURE, FIXTURES, AND EQUIPMENT LOCATED IN NOT 06 MORE THAN FOUR DWELLING UNITS; OR 07 (iii) LEGAL LIABILITY OF NATURAL PERSONS 08 FOR LOSS OF, DAMAGE TO, OR INJURY TO PERSONS OR 09 PROPERTY IF THE INSURANCE DOES NOT COVER LIABILITY 10 ARISING FROM OR IN CONNECTION WITH BUSINESS OR 11 COMMERCIAL ACTIVITIES; 12 (B) DOES NOT INCLUDE AN ANNUITY CONTRACT OR 13 A POLICY OF LIFE INSURANCE, HEALTH INSURANCE, OR TITLE 14 INSURANCE]; 15 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 APPLICABILITY. AS 21.36.240, as amended by secs. 1 and 2 of this Act, and 18 AS 21.36.310(4), as amended by sec. 3 of this Act, apply to an insurance policy or contract 19 entered into or renewed on or after the effective date of secs. 1 - 3 of this Act. 20 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 TRANSITION: REGULATIONS. The director of the division of insurance may adopt 23 regulations necessary to implement the changes made by this Act. The regulations take effect 24 under AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 25 implemented by the regulations. 26 * Sec. 6. Section 5 of this Act takes effect immediately under AS 01.10.070(c). 27 * Sec. 7. Except as provided in sec. 6 of this Act, this Act takes effect July 1, 2020.