00                      CS FOR HOUSE BILL NO. 211(JUD)                                                                    
01 "An Act relating to prepaid legal plans."                                                                               
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 21.03.021 is amended by adding a new subsection to read:                                           
04            (m)  This title does not apply to a prepaid legal plan. In this subsection,                                  
05       "prepaid legal plan" means an arrangement between a member and an organization in                                 
06       which                                                                                                             
07                 (1)  the member prepays for specified legal services that are available                                 
08       to the member or the member's dependent;                                                                          
09                 (2)  the organization contracts directly with an attorney for the                                       
10       provision of the specified legal services and pays the attorney a fixed, prearranged                              
11       payment; and                                                                                                      
12                 (3)  an attorney contracted under this subsection does not receive                                      
13       additional payment or reimbursement from the organization for provision of the                                    
14       specified legal services or the specified legal expenses.                                                         
15    * Sec. 2. AS 45.50.471(b) is amended by adding a new paragraph to read:                                            

01                 (58)  violating AS 45.50.476 (prepaid legal plans).                                                     
02    * Sec. 3. AS 45.50 is amended by adding a new section to read:                                                     
03 Sec. 45.50.476. Prepaid legal plans. (a) A person that offers a prepaid legal                                       
04 plan exempt under AS 21.03.021 may not engage in misleading advertising that                                            
05 implies the prepaid legal plan is insurance or guarantees outcomes beyond the scope of                                  
06       covered services. A person that offers a prepaid legal plan shall                                                 
07                 (1)  before enrollment, provide a written disclosure to members that                                    
08       includes                                                                                                          
09                      (A)  a complete list of covered legal services and any significant                                 
10            exclusions;                                                                                                  
11                      (B)  the cost and payment terms of the plan;                                                       
12                      (C)  information on how to access services and contact                                             
13            information for the plan administrator and participating attorneys;                                          
14                      (D)  a statement that the plan is not insurance and is not subject                                 
15            to insurance regulation; and                                                                                 
16                      (E)  the procedures for filing a complaint or resolving a dispute;                                 
17            and                                                                                                          
18                 (2)  maintain records of member complaints for at least three years and                                 
19       make complaints available to the attorney general upon request.                                                   
20            (b)  In this section, "prepaid legal plan" has the meaning given in                                          
21       AS 21.03.021.