00                      CS FOR HOUSE BILL NO. 211(L&C)                                                                    
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                                                                            
05                 (1)  engage in misleading advertising that implies the prepaid legal plan                               
06       is insurance or guarantees outcomes beyond the scope of covered services;                                         
07                 (2)  require a member to pay for services beyond the month in which                                     
08       the member requests to be disenrolled from the plan; or                                                           
09                 (3)  impose a penalty for disenrolling from the plan.                                                   
10            (b)  A person that offers a prepaid legal plan shall                                                         
11 (1)  before enrollment, provide a written disclosure to members that                                                    
12       includes                                                                                                          
13 (A)  a complete list of covered legal services and any significant                                                      
14            exclusions;                                                                                                  
15                      (B)  the cost and payment terms of the plan;                                                       
16 (C)  information on how to access services and contact                                                                  
17            information for the plan administrator and participating attorneys;                                          
18 (D)  a statement that the plan is not insurance and is not subject                                                      
19            to insurance regulation; and                                                                                 
20 (E)  the procedures for filing a complaint or resolving a dispute;                                                      
21            and                                                                                                          
22 (2)  maintain records of member complaints for at least three years and                                                 
23       make complaints available to the attorney general upon request.                                                   
24 (c)  In this section, "prepaid legal plan" has the meaning given in                                                     
25       AS 21.03.021.