SCS CSHB 302(TRA) am S: "An Act relating to travel insurance; relating to the business of insurance; relating to exceptions to prohibited rebates; relating to the powers of the director of the division of insurance; relating to prohibited practices in the advertisement of insurance; relating to unemployment benefits; and providing for an effective date."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 302(TRA) am S 01 "An Act relating to travel insurance; relating to the business of insurance; relating to 02 exceptions to prohibited rebates; relating to the powers of the director of the division of 03 insurance; relating to prohibited practices in the advertisement of insurance; relating to 04 unemployment benefits; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 21.09.210(p) is amended to read: 07 (p) In this section, 08 (1) "blanket travel insurance" has the meaning given in 09 AS 21.42.825; 10 (2) "cancellation fee waiver" has the meaning given in 11 AS 21.42.825; 12 (3) "eligible group" has the meaning given in AS 21.42.825; 13 (4) "group travel insurance" means travel insurance that is issued 14 to an eligible group;
01 (5) "premium tax credit" means an amount that an insurer may use as 02 an offset against a premium tax payment; 03 (6) "primary certificate holder" means an individual who elects 04 and purchases travel insurance under a group travel insurance policy; 05 (7) "primary policyholder" means an individual who elects and 06 purchases travel insurance under an individual policy; 07 (8) "resident" has the meaning given in AS 21.27.990; 08 (9) "travel assistance services" has the meaning given in 09 AS 21.42.825; 10 (10) "travel insurance" has the meaning given in AS 21.42.825; 11 (11) "travel insurer" means an insurer who transacts travel 12 insurance. 13 * Sec. 2. AS 21.09.210 is amended by adding new subsections to read: 14 (q) The provisions of this section apply to travel insurers. Travel insurance 15 premiums will be taxed on insurance premiums paid by 16 (1) a primary policyholder who is a resident of the state; 17 (2) a primary certificate holder who is a resident of the state; or 18 (3) a blanket travel insurance policyholder who is a resident of the 19 state, whose principal place of business is in the state, or whose affiliate or subsidiary 20 having a principal place of business in the state has purchased the policy, subject to 21 any apportionment rules that apply to the insurer across multiple taxing jurisdictions 22 or that allow the insurer to allocate premiums on an apportioned basis in a reasonable 23 and equitable manner in those jurisdictions. 24 (r) A travel insurer shall 25 (1) document the state of residence or principal place of business of the 26 policyholder or certificate holder; and 27 (2) report as premiums the amount allocable to travel insurance and 28 not the amount received for travel assistance services or cancellation fee waivers. 29 * Sec. 3. AS 21.27.150(a) is amended to read: 30 (a) The director may issue a 31 (1) travel insurance limited producer license to a person in accordance
01 with AS 21.42.805 [WHO IS APPOINTED UNDER AS 21.27.100 AND WHO 02 SELLS TRAVEL INSURANCE; IN THIS PARAGRAPH, "TRAVEL INSURANCE" 03 HAS THE MEANING GIVEN IN AS 21.27.152]; 04 (2) title insurance limited producer license to a person whose place of 05 business is located in this state and whose sole purpose is to be appointed by and act 06 on behalf of a title insurer; 07 (3) bail bond limited producer license to a person who is appointed by 08 and acts on behalf of a surety insurer pertaining to bail bonds; 09 (4) motor vehicle rental agency limited producer license to a person 10 and, subject to the approval of the director, to employees of the person licensed that 11 the licensee authorizes to transact the business of insurance on the licensee's behalf if, 12 as to an employee, the licensee complies with (D) of this paragraph and if the licensee 13 (A) rents to others, without operators, 14 (i) private passenger motor vehicles, including 15 passenger vans, minivans, and sport utility vehicles; or 16 (ii) cargo motor vehicles, including cargo vans, pickup 17 trucks, and trucks with a gross vehicle weight of less than 26,000 18 pounds that do not require the operator to possess a commercial driver's 19 license; 20 (B) rents motor vehicles only to persons under rental 21 agreements that do not exceed a term of 90 days; 22 (C) transacts only the following kinds of insurance: 23 (i) motor vehicle liability insurance with respect to 24 liability arising out of the use of a vehicle rented from the licensee 25 during the term of the rental agreement; 26 (ii) uninsured or underinsured motorist coverage, with 27 minimum limits described in AS 21.96.020(c) and (d) arising from the 28 use of a vehicle rented from the licensee during the term of the rental 29 agreement; 30 (iii) insurance against medical, hospital, surgical, and 31 disability benefits to an injured person and funeral and death benefits to
01 dependents, beneficiaries, or personal representatives of a deceased 02 person if the insurance is issued as incidental coverage with or 03 supplemental to liability insurance and arises out of the use of a vehicle 04 rented from the licensee during the term of the rental agreement; 05 (iv) personal effects insurance, including loss of use, 06 with respect to damage to or loss of personal property of a person 07 renting the vehicle and other vehicle occupants while that property is 08 being loaded into, transported by, or unloaded from a vehicle rented 09 from the licensee during the term of the rental agreement; 10 (v) towing and roadside assistance with respect to 11 vehicles rented from the licensee during the term of the rental 12 agreement; and 13 (vi) other insurance as may be authorized by regulation 14 by the director; 15 (D) notifies the director in writing, not later than 30 days after 16 employment, of the name, date of birth, social security number, location of 17 employment, and home address of an employee authorized by the licensee to 18 transact insurance on the licensee's behalf; and 19 (E) provides other information as required by the director; 20 (5) nonresident limited producer license to a person; a license that the 21 director issues under this paragraph grants the same scope of authority as a limited 22 lines producer license issued to the person by the person's home state; 23 (6) credit insurance limited producer license to a person who sells 24 limited lines credit insurance; 25 (7) miscellaneous limited producer license to a person who transacts 26 insurance in this state that restricts the person's authority to less than the total authority 27 for a line of authority described in AS 21.27.115(1) - (6); 28 (8) portable electronics limited producer license to a vendor that sells 29 or offers portable electronics insurance as defined in AS 21.36.515; the following 30 provisions apply to a license issued under this paragraph: 31 (A) a vendor shall file with the director a sworn application for
01 a license under this paragraph on a form prescribed and furnished by the 02 director; the vendor shall provide the name, residence address, location of the 03 vendor's home office, and other information required by the director for an 04 employee or officer that is designated by the vendor as the person responsible 05 for the vendor's compliance with the requirements of this chapter; however, if 06 the vendor derives more than 50 percent of its revenue from the sale of 07 portable electronics insurance, the vendor shall provide the information 08 required under this subparagraph for all officers, directors, and shareholders of 09 record having beneficial ownership of 10 percent or more of any class of 10 securities registered under the federal securities law; 11 (B) a portable electronics limited producer license issued under 12 this paragraph must authorize the employees or authorized representatives of a 13 vendor to transact portable electronics insurance at each location at which a 14 vendor offers portable electronics to customers in this state; and 15 (C) the employees or authorized representatives of the vendor 16 may transact portable electronics insurance and are not required to obtain a 17 limited producer license if 18 (i) the employees or authorized representatives are not 19 compensated based primarily on the number of customers enrolled for 20 coverage; however, an employee or authorized representative may 21 receive compensation for activities under the license that is incidental 22 to the employee's or authorized representative's overall compensation; 23 (ii) the insurer issuing the portable electronics insurance 24 provides a training program for employees and authorized 25 representatives of the portable electronics limited producer licensee that 26 includes instruction about the portable electronics insurance offered to 27 customers and the disclosures required under AS 21.36.515; and 28 (iii) the vendor maintains a register of each location in 29 the state where the vendor offers portable electronics insurance and 30 submits the register to the director not later than 30 days after the 31 director requests the register;
01 (9) crop insurance limited producer license to a person who sells or 02 offers crop insurance coverage for damage to crops from unfavorable weather 03 conditions, fire or lightning, flood, hail, insect infestation, disease, or other yield- 04 reducing conditions or perils provided by the private insurance market or that is 05 subsidized by the Federal Crop Insurance Corporation, including multi-peril crop 06 insurance. 07 * Sec. 4. AS 21.36.010 is amended to read: 08 Sec. 21.36.010. Purpose. The purpose of this chapter is to regulate an act or a 09 trade practice in the business of insurance in accordance with the intent of Congress as 10 expressed in 15 U.S.C. 1011 - 1015 (McCarran-Ferguson Act) and P.L. 106-102 11 (Gramm-Leach-Bliley Act) by defining or providing for determination of all the 12 practices in this state that constitute an unfair method of competition or an unfair or 13 deceptive act or practice and by prohibiting them. 14 * Sec. 5. AS 21.36.110 is amended to read: 15 Sec. 21.36.110. Exceptions to discrimination and rebates. Nothing in 16 AS 21.36.090, 21.36.100, and AS 21.54.100 may be construed as including within the 17 definition of discrimination or rebates any of the following practices: 18 (1) in the case of a contract of life insurance or life annuity, paying 19 bonuses to policyholders or otherwise abating their premiums in whole or in part out 20 of surplus accumulated from nonparticipating insurance, if the bonuses or abatement 21 of premiums is fair and equitable to policyholders and for the best interests of the 22 insurer; 23 (2) in the case of a life insurance policy issued on industrial debit, 24 preauthorized check, bank draft, or similar plans, making allowance to policyholders 25 who have made premium payments directly to an office of the insurer or by 26 preauthorized debit, check, bank draft, or similar plan, in an amount that fairly 27 represents the saving in collection expense; 28 (3) readjustment of the rate of premium for a group insurance policy 29 based on the loss or expense experience thereunder, at the end of the first or a 30 subsequent policy year of insurance thereunder, which may be made retroactive only 31 for that policy year;
01 (4) issuance of life or health insurance policies or annuity contracts at 02 rates less than the usual rates of premiums for the policies or contracts, or modification 03 of premium or rate based on amount of insurance; but the issuance or modification 04 may not result in reduction in premium or rate in excess of savings in administration 05 and issuance expenses reasonably attributable to the policies or contracts; 06 (5) a reward under a wellness program established under a health care 07 plan that favors an individual if the wellness program meets the following 08 requirements: 09 (A) the wellness program is reasonably designed to promote 10 health or prevent disease; 11 (B) an individual has an opportunity to qualify for the reward at 12 least once a year; 13 (C) the reward is available for all similarly situated individuals; 14 (D) the wellness program has alternative standards for 15 individuals who are unable to obtain the reward because of a health factor; 16 (E) alternative standards are available for an individual who is 17 unable to participate in a reward program because of a health condition; 18 (F) the insurer provides information explaining the standard for 19 achieving the reward and discloses the alternative standards; and 20 (G) the total rewards for all wellness programs under the health 21 insurance policy do not exceed 20 percent of the cost of coverage; 22 (6) the offer or provision by an insurer or insurance producer, 23 including by or through an employee, affiliate, or third-party representative, of a 24 value-added product or service at no cost or reduced cost when that product or 25 service is not specified in the policy of insurance and the product or service 26 (A) is offered in accordance with (b) of this section; 27 (B) relates to the insurance coverage; and 28 (C) is primarily designed to 29 (i) provide loss mitigation or loss control; 30 (ii) reduce claim costs or claim settlement costs; 31 (iii) provide education about liability risks or risk of
01 loss to persons or property; 02 (iv) monitor or assess risk, identify sources of risk, 03 or develop strategies for eliminating or reducing risk; 04 (v) enhance health; 05 (vi) enhance financial wellness by providing 06 education or financial planning services; 07 (vii) provide post-loss services; 08 (viii) incentivize behavioral changes to improve the 09 health or reduce the risk of death or disability of a policyholder, 10 potential policyholder, certificate holder, potential certificate 11 holder, insured, potential insured, or applicant; or 12 (ix) assist in the administration of the employee or 13 retiree benefit insurance coverage; 14 (7) the provision of an offer, gift, item, or service provided in 15 accordance with (d) of this section. 16 * Sec. 6. AS 21.36.110 is amended by adding new subsections to read: 17 (b) Except as provided in (c) of this section, an insurer or insurance producer 18 offering a value-added product or service in accordance with (a)(6) of this section 19 shall ensure that 20 (1) the cost to the insurer or producer of offering the product or service 21 to a customer is reasonable relative to that customer's premium or insurance coverage 22 for the policy class, the aggregate cost of a value-added product or service offered 23 under this subsection does not exceed the amount established in regulation by the 24 division, and that a value-added product or service is not offered solely to an 25 individual negotiating or procuring a group or association policy on behalf of others; 26 (2) if the insurer or producer is providing the product or service 27 offered, the customer is provided with information for whom to contact to assist the 28 customer with questions regarding the product or service; and 29 (3) the product or service is made available based on documented, 30 objective criteria and offered in a manner that is not unfairly discriminatory; 31 documented criteria described in this paragraph must be maintained by the insurer or
01 producer and provided to the director upon request. 02 (c) If an insurer or insurance producer does not have sufficient evidence but 03 has a good faith belief that a value-added product or service meets the criteria in 04 (a)(6)(C) of this section, the insurer or producer may provide the product or service in 05 a manner that is not unfairly discriminatory as part of a pilot or testing program for a 06 period of not more than three years. An insurer or producer offering a product or 07 service to consumers in the state as part of a pilot or testing program under this 08 subsection shall notify the director before launching the program and may proceed 09 with the program if the director does not object within 21 days after receiving the 10 notice. 11 (d) An insurer or insurance producer may 12 (1) offer or give noncash gifts, items, or services to, including 13 provision of meals to or charitable donations made on behalf of, a customer in 14 connection with the marketing, sale, purchase, or retention of a contract of insurance if 15 (A) the offer is made in a manner that is not unfairly 16 discriminatory; 17 (B) the customer is not required to purchase, continue to 18 purchase, or renew a policy in exchange for the noncash gift, item, or service; 19 and 20 (C) the cost of the noncash gift, item, or service does not 21 exceed an amount determined by the director to be reasonable for each term of 22 a policy year; 23 (2) offer or give noncash gifts, items, or services to, including 24 provision of meals to or charitable donations made on behalf of, a commercial or 25 institutional customer in connection with the marketing, sale, purchase, or retention of 26 a contract of insurance if 27 (A) the offer is made in a manner that is not unfairly 28 discriminatory; 29 (B) the customer is not required to purchase, continue to 30 purchase, or renew a policy in exchange for the noncash gift, item, or service; 31 (C) the cost of the noncash gift, item, or service is reasonable
01 relative to the premium or proposed premium; and 02 (D) the cost of the noncash gift, item, or service is not included 03 in any amounts charged to another person or entity; 04 (3) conduct a raffle or drawing to the extent permitted by state law if 05 (A) there is no financial cost to entrants to participate; 06 (B) the raffle or drawing does not obligate participants to 07 purchase insurance; 08 (C) the prizes are not valued in excess of a reasonable amount 09 determined by the director; 10 (D) the raffle or drawing is open to the public; 11 (E) the raffle or drawing is offered in a manner that is not 12 unfairly discriminatory; and 13 (F) a participant is not required to purchase, continue to 14 purchase, or renew a policy in exchange for participation in the raffle or 15 drawing. 16 (e) The director may adopt regulations to implement this section. 17 * Sec. 7. AS 21.36 is amended by adding a new section to read: 18 Sec. 21.36.115. Prohibited advertising practices. An insurer, insurance 19 producer, or representative of an insurer or producer may not 20 (1) offer or provide insurance as an incentive for purchasing another 21 policy; or 22 (2) use in an advertisement the words "free," "no cost," or similar 23 language that suggests that the insurance coverage is free or provided at no cost to the 24 consumer. 25 * Sec. 8. AS 21.36.120(a) is amended to read: 26 (a) A property, casualty, or surety insurer or its employee or representative [,] 27 or an insurance producer [AN AGENT, OR SOLICITOR] may not pay, allow, give, 28 or offer to pay, allow, or give, directly or indirectly, as an inducement to insurance or 29 after insurance has been effected, a rebate, discount, abatement, credit, or reduction of 30 the premium named in the policy of insurance, or a special favor or advantage in the 31 dividends or other benefits to accrue thereon, or any valuable consideration or
01 inducement, not specified in the policy, except to the extent provided for in an 02 applicable filing with the director as provided by law. 03 * Sec. 9. AS 21.42 is amended by adding new sections to read: 04 Article 4. Travel Insurance. 05 Sec. 21.42.800. Travel insurance classification and filing. (a) Travel 06 insurance may be provided under an individual policy or under a group or blanket 07 policy. 08 (b) Eligible groups may purchase group and blanket policies. Eligible groups 09 include 10 (1) a tour operator, lodging provider, vacation property owner, hotel, 11 resort, travel club, travel agency, property manager, cultural exchange program, 12 airline, cruise line, railroad, steamship company, public bus carrier, or other common 13 carrier; the operator, owner, or lessor of a means of transportation of passengers; or 14 another entity engaged in the business of providing travel or travel services; for groups 15 listed in this paragraph, all members or customers of the group must have a common 16 exposure to risk associated with the travel; 17 (2) a college, school, or other institution of learning, covering students, 18 teachers, employees, or volunteers; 19 (3) an employer covering any group of employees, volunteers, 20 contractors, board of directors, dependents, or guests; 21 (4) a sports team, camp, or sponsor of a sports team or camp, covering 22 participants, members, campers, employees, officials, supervisors, or volunteers; 23 (5) a religious, charitable, recreational, educational, or civic 24 organization, or a branch of a religious, charitable, recreational, educational, or civic 25 organization, covering any group of members, participants, or volunteers; 26 (6) a financial institution or financial institution vendor, parent holding 27 company, trustee, agent, or designee of a financial institution or financial institution 28 vendor, account holder, credit card holder, debtor, guarantor, or purchaser; 29 (7) an incorporated or unincorporated association having a common 30 interest, constitution, and bylaws and organized and maintained in good faith for 31 purposes other than obtaining insurance for members or participants of the association
01 covering its members; 02 (8) a labor union; 03 (9) a trust or the trustees of a fund established, created, or maintained 04 for the benefit of and covering members, employees, or customers, subject to the 05 director's approval of the use of a trust and the state's premium tax provisions in 06 AS 21.09.210 for one or more associations that meet the requirements of (7) or (8) of 07 this subsection; 08 (10) an entertainment production company covering a group of 09 participants, volunteers, audience members, contestants, or workers; 10 (11) a volunteer fire department, ambulance, rescue, police 11 department, court, or any first aid, civil defense, or other volunteer group; 12 (12) a preschool, daycare institution for children or adults, or senior 13 citizen club; 14 (13) a common carrier, operator, owner or lessor of a means of 15 transportation, or automobile or truck rental or leasing company covering a group of 16 individuals who may become renters, lessees, or passengers defined by their travel 17 status on the rented or leased vehicle; the common carrier, operator, owner or lessor of 18 a means of transportation, or automobile or truck rental or leasing company is the 19 policyholder under a policy to which this subsection applies; and 20 (14) any other group the director determines is engaged in a common 21 enterprise or has an economic, educational, or social affinity or relationship, and for 22 which issuance of the policy would not be contrary to the public interest. 23 (c) Travel insurance is classified and filed for purposes of rates and forms 24 under the inland marine line of insurance. 25 (d) Eligibility and underwriting standards for travel insurance may be 26 developed and provided based on travel protection plans that are designed for 27 individual or identified marketing or distribution channels if those standards also meet 28 the underwriting standards for inland marine lines of insurance in the state. 29 Sec. 21.42.805. Travel insurance limited producers and travel retailers. (a) 30 The director may issue a travel insurance limited producer license to an individual or 31 business entity that has filed with the director an application in a form and manner
01 prescribed by the director. A travel insurance limited producer shall be licensed to sell, 02 solicit, or negotiate travel insurance through a licensed insurer. A person may act as a 03 travel insurance limited producer only if the person is licensed under this subsection. 04 (b) A travel retailer may offer and disseminate travel insurance to its 05 customers on behalf of and under the direction of a travel insurance limited producer. 06 A person may act as a travel retailer only if the person is a business entity that is 07 included in the register maintained by the travel insurance limited producer under 08 (e)(1) of this section. 09 (c) A travel retailer's employee or authorized representative who is not a travel 10 insurance limited producer may not 11 (1) evaluate or interpret the material terms, benefits, and conditions of 12 the offered travel insurance coverage; 13 (2) evaluate or provide advice concerning a prospective purchaser's 14 existing insurance coverage; or 15 (3) represent that the employee or authorized representative is a 16 licensed insurer, licensed producer, or insurance expert. 17 (d) A travel insurance limited producer or travel retailer shall provide to a 18 purchaser of travel insurance 19 (1) a description of the material terms of the insurance coverage; 20 (2) a description of the claims process; 21 (3) a description of the review and return or cancellation process; and 22 (4) the identity and contact information for the insurer and the travel 23 insurance limited producer. 24 (e) A travel insurance limited producer shall 25 (1) maintain, in a format prescribed by the director, a register of each 26 travel retailer that offers travel insurance on behalf of and under the direction of the 27 producer and make the register available to the director upon request; the register must 28 include 29 (A) the name, address, and contact information of each travel 30 retailer; 31 (B) the name, address, and contact information of each officer
01 or person who directs or controls the travel retailer's operations; and 02 (C) the federal employment identification number of the travel 03 retailer; 04 (2) certify that each travel retailer that offers travel insurance on behalf 05 of and under the direction of the producer complies with 18 U.S.C. 1033; 06 (3) require each employee and authorized representative of a travel 07 retailer that offers travel insurance on behalf of and under the direction of the producer 08 whose duties include offering and disseminating travel insurance to receive a training 09 or instruction program that, at a minimum, contains adequate instruction on the type of 10 insurance offered, ethical sales practices, and the disclosures that must be provided to 11 its prospective customers; the training program is subject to review and approval by 12 the director; 13 (4) designate one of its employees as the person responsible for the 14 producer's compliance with applicable travel insurance laws and regulations; the 15 employee must be an individual who is licensed as an insurance producer; and 16 (5) pay all applicable licensing fees required under this title. 17 (f) A person designated under (e)(4) of this section and the president, 18 secretary, treasurer, and any other officer or person who directs or controls the travel 19 insurance limited producer's insurance operations shall comply with the fingerprinting 20 requirements applicable to insurance producers in the resident state of the travel 21 insurance limited producer. 22 (g) A travel insurance limited producer is liable for the acts of a travel retailer 23 transacting travel insurance on behalf of and under the direction of the producer and 24 shall use reasonable means to ensure the travel retailer's compliance with applicable 25 travel insurance laws and regulations. 26 (h) A travel retailer offering or disseminating travel insurance shall make 27 available to a prospective purchaser brochures or other written materials that 28 (1) provide the identity and contact information of the insurer and the 29 travel insurance limited producer; 30 (2) explain that the purchase of travel insurance is not required in order 31 to purchase any other product or service from the travel retailer; and
01 (3) state that a person transacting travel insurance may provide general 02 information about the insurance offered, including a description of the coverage and 03 price, but is not qualified or authorized to answer questions about the terms and 04 conditions of the insurance offered or to evaluate the adequacy of the customer's 05 insurance coverage. 06 (i) A travel retailer whose insurance-related activities, and those of the travel 07 retailer's employees and authorized representatives, are limited to offering and 08 disseminating travel insurance under this section may receive related compensation 09 upon registration under (e)(1) of this section. 10 (j) The requirements of AS 21.42.800 - 21.42.825 apply to travel insurance 11 that covers a resident of the state and that is sold, solicited, negotiated, or offered in 12 the state, and to policies and certificates that are delivered or issued for delivery in the 13 state. AS 21.42.800 - 21.42.825 do not apply to cancellation fee waivers or travel 14 assistance services except as expressly provided in AS 21.42.800 - 21.42.825. All 15 other applicable provisions of the insurance laws of the state continue to apply to 16 travel insurance except that the specific provisions of AS 21.42.800 - 21.42.825 17 supersede any general provisions of law that would otherwise be applicable to travel 18 insurance. 19 (k) Any person licensed as an insurance producer for a line of authority 20 described in AS 21.27.115(1) - (6) may sell, solicit, and negotiate travel insurance. A 21 property and casualty insurance producer is not required to be appointed by an insurer 22 in order to sell, solicit, or negotiate travel insurance. 23 Sec. 21.42.810. Travel protection plans. (a) A travel protection plan may be 24 offered in the state for one price if 25 (1) the travel protection plan clearly discloses to the consumer, at or 26 before the time of purchase, that the plan includes travel insurance, travel assistance 27 services, and cancellation fee waivers, as applicable, and provides information and an 28 opportunity, at or before the time of purchase, for the consumer to obtain additional 29 information regarding the features and pricing of each feature; and 30 (2) the fulfillment materials 31 (A) describe and delineate the travel insurance, travel
01 assistance services, and cancellation fee waivers in the travel protection plan; 02 and 03 (B) include the travel insurance disclosures and the contact 04 information for persons providing travel assistance services and cancellation 05 fee waivers, as applicable. 06 (b) Travel assistance services provided under a travel protection plan may 07 include security advisories, destination information, vaccination and immunization 08 information services, travel reservation services, entertainment, activity and event 09 planning, translation assistance, emergency messaging, international legal and medical 10 referrals, medical case monitoring, coordination of transportation arrangements, 11 emergency cash transfer assistance, medical prescription replacement assistance, 12 passport and travel document replacement assistance, lost luggage assistance, 13 concierge services, and any other service that is furnished in connection with planned 14 travel. Travel assistance services are not insurance and not related to insurance. 15 Sec. 21.42.815. Sales practices. (a) A person offering travel insurance to 16 residents of the state is subject to the unfair trade practices and fraud provisions under 17 AS 21.36, except as otherwise provided in AS 21.42.800 - 21.42.825. If a conflict 18 occurs between AS 21.42.800 - 21.42.825 and another provision of this title relating to 19 the sale and marketing of travel insurance and travel protection plans, AS 21.42.800 - 20 21.42.825 control. 21 (b) Offering or selling a travel insurance policy that could never result in 22 payment of a claim for a person insured under the policy is an unfair trade practice 23 under AS 21.36. Notwithstanding (a) of this section, nothing in this subsection limits 24 the director's authority under AS 21.42.130. 25 (c) All documents provided to consumers before the purchase of travel 26 insurance, including sales, advertising, and marketing materials, must be consistent 27 with the travel insurance policy itself, including forms, endorsements, policies, rate 28 filings, and certificates of insurance. 29 (d) If a travel insurance policy or certificate contains preexisting condition 30 exclusions, the person offering the policy shall provide to the consumer, before the 31 time of purchase and in the fulfillment materials for the coverage, information and an
01 opportunity to learn more about the preexisting condition exclusions. 02 (e) A person offering a travel insurance policy shall provide to the 03 policyholder or certificate holder fulfillment materials and the information described 04 in AS 21.42.805(d) as soon as practicable following the purchase of a travel protection 05 plan. Unless the insured has either started a covered trip or filed a claim under the 06 travel insurance coverage, a policyholder or certificate holder may cancel a policy or 07 certificate for a full refund of the travel protection plan price from the date of purchase 08 of the travel protection plan until at least 09 (1) 15 days after the date of delivery of the fulfillment materials for the 10 travel protection plan if the materials were delivered by mail; the fulfillment materials 11 are considered delivered under this paragraph when sent to the policyholder or 12 certificate holder; or 13 (2) 10 days after the date of delivery of the fulfillment materials for the 14 travel protection plan if the materials were delivered 15 (A) in person; the fulfillment materials are considered delivered 16 under this subparagraph when physically handed to the policyholder or 17 certificate holder; or 18 (B) electronically; the fulfillment materials are considered 19 delivered under this subparagraph when sent to the policyholder or certificate 20 holder. 21 (f) The policy documentation and fulfillment materials must disclose whether 22 the travel insurance is primary or secondary to other applicable coverage. 23 (g) If travel insurance is marketed directly to a consumer either by an insurer's 24 Internet website or by an aggregator website, it is not an unfair trade practice or other 25 violation of law if an accurate summary or short description of the coverage is 26 provided on the website and the consumer has access to the full provisions of the 27 policy through electronic means. In this subsection, "aggregator website" means a 28 website that provides access to information relating to insurance products from more 29 than one insurer, including product and insurer information, for use in comparison 30 shopping. 31 (h) A person may not offer, solicit, or negotiate travel insurance or travel
01 protection plans on an individual or group basis by using a negative or opt-out option 02 that requires a consumer to take an affirmative action to deselect coverage, including 03 unchecking a box on an electronic form, when the consumer purchases a trip. 04 (i) It is an unfair trade practice subject to penalty under AS 21.36 to market 05 blanket travel insurance coverage as free. 06 (j) If a consumer's destination jurisdiction requires insurance coverage, it is 07 not an unfair trade practice under AS 21.36 to require that a consumer choose between 08 the following options as a condition of purchasing a trip or travel package: 09 (1) purchasing the coverage required by the destination jurisdiction 10 through the travel retailer or travel insurance limited producer supplying the trip or 11 travel package; or 12 (2) agreeing to obtain and provide before departure proof of coverage 13 that meets the requirements of the destination jurisdiction. 14 Sec. 21.42.820. Travel administrators. (a) Notwithstanding any other 15 provision of this title, a person may not act or represent itself as a travel administrator 16 for travel insurance in the state unless the person 17 (1) is a licensed property and casualty insurance producer in the state 18 for activities permitted under that producer license; 19 (2) holds a valid managing general agent license in the state; or 20 (3) holds a valid third-party administrator license in the state. 21 (b) A travel administrator and the employees of the travel administrator are 22 exempt from the licensing requirements applicable to adjusters under this title for the 23 purposes of administering travel insurance. 24 (c) An insurer is liable for the acts of a travel administrator administering 25 travel insurance underwritten by the insurer and shall ensure that the travel 26 administrator maintains all books and records relevant to the insurer. The travel 27 administrator shall make the books and records available to the director upon request. 28 Sec. 21.42.825. Definitions. In AS 21.42.800 - 21.42.825, 29 (1) "blanket travel insurance" means a policy of travel insurance that is 30 issued to any eligible group and that provides coverage for specific classes of persons 31 defined in the policy with coverage provided to all members of the eligible group
01 without a separate charge to individual members of the eligible group; 02 (2) "cancellation fee waiver" 03 (A) means a contractual agreement between a supplier of travel 04 services and its customer to waive some or all of the nonrefundable 05 cancellation fee provisions of the supplier's underlying travel contract with or 06 without regard to the reason for the cancellation or form of reimbursement; and 07 (B) does not mean insurance; 08 (3) "eligible group" means two or more persons who are engaged in a 09 common enterprise or have an economic, educational, or social affinity or relationship; 10 (4) "fulfillment materials" means documentation that is sent to the 11 purchaser of a travel protection plan and that confirms the purchase and provides 12 coverage and assistance details of the travel protection plan; 13 (5) "offering and disseminating" means providing general information, 14 including a description of the coverage and price, as well as processing the application 15 and collecting premiums; 16 (6) "travel administrator" means a person who, directly or indirectly, 17 underwrites, collects charges, collateral, or premiums from residents of this state, or 18 adjusts or settles claims in connection with travel insurance; a person may not be 19 considered a travel administrator if the person's only actions that would otherwise 20 cause the person to be considered a travel administrator are among the following: 21 (A) a person working for a travel administrator to the extent 22 that the person's activities are subject to the supervision and control of the 23 travel administrator; 24 (B) an insurance producer selling insurance or engaged in 25 administrative and claims-related activities within the scope of the producer's 26 license; 27 (C) a travel retailer offering and disseminating travel insurance 28 that is registered under the license of a limited lines travel insurance producer 29 in accordance with AS 21.42.800 - 21.42.825; 30 (D) a person adjusting or settling claims in the normal course 31 of that person's practice or employment as an attorney who does not collect
01 charges or premiums in connection with insurance coverage; or 02 (E) a business entity that is affiliated with a licensed insurer 03 while acting as a travel administrator for the direct and assumed insurance 04 business of the affiliated insurer; 05 (7) "travel assistance services" means noninsurance services for which 06 the consumer is not indemnified based on a fortuitous event and for which provision 07 of the service does not result in transfer or shifting of risk that would constitute the 08 business of insurance; 09 (8) "travel insurance" 10 (A) means insurance coverage for personal risks incident to 11 planned travel, including 12 (i) trip or event interruption or cancellation; 13 (ii) lost baggage or personal effects; 14 (iii) damage to accommodations or a rental vehicle; 15 (iv) sickness, an accident, disability, or death occurring 16 during travel; 17 (v) emergency evacuation; 18 (vi) repatriation of remains; or 19 (vii) any other contractual obligation to indemnify or 20 pay a specified amount to a traveler upon determinable contingencies 21 related to travel as approved by the director; 22 (B) does not include 23 (i) comprehensive medical insurance that provides 24 coverage during a trip lasting longer than six months, including a trip 25 during which a traveler is working or residing overseas as an expatriate; 26 or 27 (ii) any other product that requires a specific insurance 28 producer license; 29 (9) "travel insurance limited producer" means a 30 (A) licensed managing general agent or third-party 31 administrator;
01 (B) licensed insurance producer; or 02 (C) travel administrator; 03 (10) "travel protection plan" means a plan that provides combined 04 features that may include one or more of the following: travel insurance, travel 05 assistance services, or cancellation fee waivers; 06 (11) "travel retailer" means a business entity that makes, arranges, or 07 offers planned travel. 08 * Sec. 10. AS 23.20.350(d) is amended to read: 09 (d) An individual who is eligible under (a) of this section is entitled to receive 10 the weekly benefit amount set out in column (B) of the table in this subsection that is 11 opposite the amount set out in column (A) of the individual's base period wages 12 determined under (c) of this section: 13 (A) (B) 14 Base Period Wages Weekly Benefit 15 Amount 16 At least But less than 17 0 2,500 $ 0 18 2,500 2,750 56 19 2,750 3,000 58 20 3,000 3,250 60 21 3,250 3,500 62 22 3,500 3,750 64 23 3,750 4,000 66 24 4,000 4,250 68 25 4,250 4,500 70 26 4,500 4,750 72 27 4,750 5,000 74 28 5,000 5,250 76 29 5,250 5,500 78 30 5,500 5,750 80 31 5,750 6,000 82
01 6,000 6,250 84 02 6,250 6,500 86 03 6,500 6,750 88 04 6,750 7,000 90 05 7,000 7,250 92 06 7,250 7,500 94 07 7,500 7,750 96 08 7,750 8,000 98 09 8,000 8,250 100 10 8,250 8,500 102 11 8,500 8,750 104 12 8,750 9,000 106 13 9,000 9,250 108 14 9,250 9,500 110 15 9,500 9,750 112 16 9,750 10,000 114 17 10,000 10,250 116 18 10,250 10,500 118 19 10,500 10,750 120 20 10,750 11,000 122 21 11,000 11,250 124 22 11,250 11,500 126 23 11,500 11,750 128 24 11,750 12,000 130 25 12,000 12,250 132 26 12,250 12,500 134 27 12,500 12,750 136 28 12,750 13,000 138 29 13,000 13,250 140 30 13,250 13,500 142 31 13,500 13,750 144
01 13,750 14,000 146 02 14,000 14,250 148 03 14,250 14,500 150 04 14,500 14,750 152 05 14,750 15,000 154 06 15,000 15,250 156 07 15,250 15,500 158 08 15,500 15,750 160 09 15,750 16,000 162 10 16,000 16,250 164 11 16,250 16,500 166 12 16,500 16,750 168 13 16,750 17,000 170 14 17,000 17,250 172 15 17,250 17,500 174 16 17,500 17,750 176 17 17,750 18,000 178 18 18,000 18,250 180 19 18,250 18,500 182 20 18,500 18,750 184 21 18,750 19,000 186 22 19,000 19,250 188 23 19,250 19,500 190 24 19,500 19,750 192 25 19,750 20,000 194 26 20,000 20,250 196 27 20,250 20,500 198 28 20,500 20,750 200 29 20,750 21,000 202 30 21,000 21,250 204 31 21,250 21,500 207 [206]
01 21,500 21,750 209 [208] 02 21,750 22,000 212 [210] 03 22,000 22,250 214 [212] 04 22,250 22,500 216 [214] 05 22,500 22,750 219 [216] 06 22,750 23,000 221 [218] 07 23,000 23,250 224 [220] 08 23,250 23,500 226 [222] 09 23,500 23,750 228 [224] 10 23,750 24,000 231 [226] 11 24,000 24,250 233 [228] 12 24,250 24,500 236 [230] 13 24,500 24,750 238 [232] 14 24,750 25,000 240 [234] 15 25,000 25,250 243 [236] 16 25,250 25,500 245 [238] 17 25,500 25,750 248 [240] 18 25,750 26,000 250 [242] 19 26,000 26,250 252 [244] 20 26,250 26,500 255 [246] 21 26,500 26,750 257 [248] 22 26,750 27,000 260 [250] 23 27,000 27,250 262 [252] 24 27,250 27,500 264 [254] 25 27,500 27,750 267 [256] 26 27,750 28,000 269 [258] 27 28,000 28,250 272 [260] 28 28,250 28,500 274 [262] 29 28,500 28,750 276 [264] 30 28,750 29,000 279 [266] 31 29,000 29,250 281 [268]
01 29,250 29,500 284 [270] 02 29,500 29,750 286 [272] 03 29,750 30,000 288 [274] 04 30,000 30,250 291 [276] 05 30,250 30,500 293 [278] 06 30,500 30,750 296 [280] 07 30,750 31,000 298 [282] 08 31,000 31,250 300 [284] 09 31,250 31,500 303 [286] 10 31,500 31,750 305 [288] 11 31,750 32,000 308 [290] 12 32,000 32,250 310 [292] 13 32,250 32,500 313 [294] 14 32,500 32,750 315 [296] 15 32,750 33,000 317 [298] 16 33,000 33,250 320 [300] 17 33,250 33,500 322 [302] 18 33,500 33,750 325 [304] 19 33,750 34,000 327 [306] 20 34,000 34,250 329 [308] 21 34,250 34,500 332 [310] 22 34,500 34,750 334 [312] 23 34,750 35,000 337 [314] 24 35,000 35,250 339 [316] 25 35,250 35,500 341 [318] 26 35,500 35,750 344 [320] 27 35,750 36,000 346 [322] 28 36,000 36,250 349 [324] 29 36,250 36,500 351 [326] 30 36,500 36,750 353 [328] 31 36,750 37,000 356 [330]
01 37,000 37,250 358 [332] 02 37,250 37,500 361 [334] 03 37,500 37,750 363 [336] 04 37,750 38,000 365 [338] 05 38,000 38,250 368 [340] 06 38,250 38,500 370 [342] 07 38,500 38,750 373 [344] 08 38,750 39,000 375 [346] 09 39,000 39,250 377 [348] 10 39,250 39,500 380 [350] 11 39,500 39,750 382 [352] 12 39,750 40,000 385 [354] 13 40,000 40,250 387 [356] 14 40,250 40,500 389 [358] 15 40,500 40,750 392 [360] 16 40,750 41,000 394 [362] 17 41,000 41,250 397 [364] 18 41,250 41,500 399 [366] 19 41,500 41,750 401 [368] 20 41,750 42,000 404 [370] 21 42,000 42,250 406 22 42,250 42,500 409 23 42,500 42,750 411 24 42,750 43,000 413 25 43,000 43,250 416 26 43,250 43,500 418 27 43,500 43,750 421 28 43,750 44,000 423 29 44,000 44,250 425 30 44,250 44,500 428 31 44,500 44,750 430
01 44,750 45,000 433 02 45,000 45,250 435 03 45,250 45,500 438 04 45,500 45,750 440 05 45,750 46,000 442 06 46,000 46,250 445 07 46,250 46,500 447 08 46,500 46,750 450 09 46,750 47,000 452 10 47,000 47,250 454 11 47,250 47,500 457 12 47,500 47,750 459 13 47,750 48,000 462 14 48,000 48,250 464 15 48,250 48,500 466 16 48,500 48,750 469 17 48,750 49,000 470 18 49,000 470 [370]. 19 * Sec. 11. AS 23.20.350(f) is amended to read: 20 (f) An individual who establishes a benefit year is eligible for an allowance for 21 dependents in addition to the individual's weekly benefit amount. The department may 22 require an individual claiming or receiving an allowance for dependents to produce 23 income tax returns, birth certificates, notices of adoption or custody, social security 24 account number of spouse, verification of support documents, or other information 25 necessary to verify that the allowance is payable to the individual. The allowance for 26 dependents 27 (1) is $72 [$24] per week for each dependent, except that the total 28 allowance for dependents paid to an individual may not exceed $216 [$72] for each 29 week of unemployment; 30 (2) is payable beginning with the week during the benefit year in 31 which the individual claims an allowance for the dependent and is payable for the
01 remainder of the individual's eligibility for regular, extended, or supplemental 02 payments during the benefit year; 03 (3) may not be claimed for a new dependent after the end of the benefit 04 year or after the exhaustion of regular benefits in the benefit year [; 05 (4) REPEALED 06 (5) REPEALED]. 07 * Sec. 12. AS 23.20.350 is amended by adding a new subsection to read: 08 (h) On January 1 of each year, the department shall increase the maximum 09 base period wages in (d) of this section by a percentage equal to the percentage 10 increase in the base of contributions calculated under AS 23.20.175 in comparison to 11 the base contributions calculated for the prior year. The new base period wage amount 12 shall be rounded to the nearest $250. The department shall increase the corresponding 13 weekly benefit amount in (d) of this section by $2 for each $250 increase in base 14 period wages. The department may not decrease the base period wage amount of the 15 weekly benefit amount. 16 * Sec. 13. AS 21.27.152 is repealed. 17 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 APPLICABILITY. Sections 1 - 3, 9, and 13 of this Act apply to an insurance policy or 20 contract issued, delivered, or renewed on or after the effective date of secs. 1 - 3, 9, and 13 of 21 this Act. 22 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 TRANSITION: REGULATIONS. The director of the division of insurance may adopt 25 regulations necessary to implement secs. 4 - 8 of this Act. The regulations take effect under 26 AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 27 implemented by the regulation. 28 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 STATE UNEMPLOYMENT INSURANCE LAW FEDERAL APPROVAL. To the 31 extent necessary to implement this Act, the Department of Labor and Workforce
01 Development shall submit for federal approval the changes to the unemployment insurance 02 laws of the state enacted by secs. 10 - 12 of this Act. 03 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 CONDITIONAL EFFECT; NOTIFICATION. (a) Sections 10 - 12 of this Act take 06 effect only if, and to the extent that, on or before July 1, 2027, the United States Secretary of 07 Labor approves the changes to the unemployment insurance laws of this state under 26 U.S.C. 08 3304 (Federal Unemployment Tax Act), or determines that approval is not necessary. 09 (b) The commissioner of labor and workforce development shall notify the revisor of 10 statutes in writing within 30 days after the United States Secretary of Labor approves or does 11 not approve the changes to the unemployment insurance laws of this state. 12 * Sec. 18. If secs. 10 - 12 of this Act take effect, they take effect on January 1, 2027, or the 13 day after the United States Secretary of Labor approves the changes to the unemployment 14 insurance laws of this state, whichever is later. 15 * Sec. 19. Sections 15 and 16 of this Act take effect immediately under AS 01.10.070(c). 16 * Sec. 20. Except as provided in secs. 18 and 19 of this Act, this Act takes effect January 1, 17 2027.