Legislature(1997 - 1998)
1997-04-28 Senate Journal
Full Journal pdf1997-04-28 Senate Journal Page 1516 SB 104 SENATE BILL NO. 104 An Act relating to regulation and examination of insurers and insurance agents; relating to kinds of insurance; relating to payment of insurance taxes and to required insurance reserves; relating to insurance policies; relating to regulation of capital, surplus, and investments by insurers; relating to hospital and medical service corporations; and providing for an effective date was read the second time. 1997-04-28 Senate Journal Page 1517 SB 104 Senator Sharp moved and asked unanimous consent for the adoption of the Finance Committee Substitute offered on page 1473. Without objection, CS FOR SENATE BILL NO. 104(FIN)An Act relating to regulation and examination of insurers and insurance agents; relating to kinds of insurance; relating to payment of insurance taxes and to required insurance reserves; relating to insurance policies; relating to regulation of capital, surplus, and investments by insurers; relating to hospital and medical service corporations; relating to the portability and availability of health care insurance; making amendments to the insurance statutes to conform to federal requirements regarding health insurance; relating to the repeal of certain small employer health care insurance provisions; repealing delayed provisions relating to dental, vision, and hearing insurance in secs. 3 and 4, ch. 101, SLA 1992; repealing delayed provisions relating to small employer health care insurance in secs. 4, 7, 9, and 12, ch. 39, SLA 1993; repealing the delayed effective date in sec. 5, ch. 101, SLA 1992, and in sec. 13, ch. 39, SLA 1993; and providing for an effective date was adopted and read the second time. Senator Donley offered Amendment No. 1 : Page 2, line 4: Delete "110 - 116" Insert "111 - 117" Page 73, following line 6: Insert a new bill section to read: "* Sec. 109. AS 21.89.020(f) is amended to read: (f) An automobile liability insurance policy must provide (1) that all expenses and fees, not including counsel fees or adjuster fees, incurred because of arbitration or mediation shall be paid as determined by the arbitrator; (2) liability coverage in the amount set out in AS 28.22.101(d) for motor vehicles rented in the United States or Canada by a person insured under the policy; (3) physical damage coverage for motor vehicles rented in the United States or Canada, if the policy provides physical damage coverage; if the insured declines physical damage coverage, the insurer shall offer physical damage coverage for rented vehicles; 1997-04-28 Senate Journal Page 1518 SB 104 (4) that payments from applicable coverage provided under (2) and (3) of this subsection will be made in the following order of priority: (A) from a policy or coverage purchased by the operator from the person who has the vehicle available for rent; (B) from a policy or coverage covering the operator of a rented vehicle but not purchased from the person who has the vehicle available for rent; and (C) from a policy or coverage of the person who has the vehicle available for rent." Renumber the following bill sections accordingly. Page 74, line 9: Delete "secs. 116, 117, and 119" Insert "secs. 117, 118, and 120" Page 74, line 11: Delete "Section 113" Insert "Section 114" Senator Donley moved for the adoption of Amendment No. 1. Objections were heard. Senator Donley moved and asked unanimous consent that he be allowed to withdraw Amendment No. 1. Without objection, Amendment No. 1 was withdrawn. Senator Donley offered Amendment No. 2 : Page 1, line 1, following "agents;": Insert "relating to payment of covered loss claims;" Page 2, lines 3 - 4: Delete "43 - 57, 59 - 90, 99 - 102, 108, and 110 - 116" Insert "44 - 58, 60 - 91, 100 - 103, 109, and 111 - 117" 1997-04-28 Senate Journal Page 1519 SB 104 Page 24, following line 12: Insert a new bill section to read: "* Sec. 43. AS21.42 is amended by adding a new section to read: Sec. 21.42.305. Required payment of loss claim; civil penalty. An insurer shall make a covered loss payment within 90 days after the date the insurer determines that an insured has a covered loss under an insurance policy. After the insurer makes payment required under this section, if the insured obtains judgment for damages resulting from the covered loss and the judgment is at least 10 percent greater than the covered loss payment made by the insurer, the insurer shall also pay a civil penalty equal to the difference between reasonable actual attorney fees and actual costs incurred by the insured in obtaining the judgment and the attorney fees and costs received by the insured under the Alaska Rules of Civil Procedure." Renumber the following bill sections accordingly. Page 74, line 4: Delete "sec. 59" Insert "sec. 60" Page 74, line 7: Delete "sec. 59" Insert "sec. 60" Page 74, line 8: Delete "sec. 91" Insert "sec. 92" Page 74, line 9: Delete "secs. 116, 117, and 119" Insert "secs. 117, 118, and 120" Page 74, line 11: Delete "sec. 113" Insert "sec. 114" 1997-04-28 Senate Journal Page 1520 SB 104 Senator Donley moved for the adoption of Amendment No. 2. Objections were heard. Senator Green moved and asked unanimous consent that she be allowed to abstain from voting due to a conflict of interest. Objections were heard and Senator Green was required to vote. The question being: Shall Amendment No. 2 be adopted? The roll was taken with the following result: CSSB 104(FIN) Second Reading Amendment No. 2 YEAS: 8 NAYS: 11 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Hoffman, Miller, Taylor, Wilken Nays: Green, Halford, Kelly, Leman, Mackie, Parnell, Pearce, Phillips, Sharp, Torgerson, Ward Excused: Lincoln and so, Amendment No. 2 failed. Senator Duncan offered Amendment No. 3 : Page 2, line 4: Delete "111 - 117, and 120" Insert "111, 112, 114 - 118, and 121" Page 74, following line 22: Insert a new bill section to read: "* Sec. 113. AS 28.20.440 is amended by adding a new subsection to read: (l) Notwithstanding any other provisions of law, a person who resides in the same household as the person named as insured or a person who is a relative of the person named as insured shall be excluded from coverage under a motor vehicle liability policy if the person named as insured requests that that person be excluded from coverage." 1997-04-28 Senate Journal Page 1521 SB 104 Renumber the following bill sections accordingly. Page 74, line 30: Delete "117, 118, and 120" Insert "118, 119, and 121" Page 75, line 1: Delete "Section 114" Insert "Section 115" Senator Duncan moved for the adoption of Amendment No. 3. Objections were heard. Senators Halford, Leman, Green moved and asked unanimous consent that they be allowed to abstain from voting due to conflicts of interest. Objections were heard, and Senators Halford, Leman, Green were required to vote. The question being: Shall Amendment No. 3 be adopted? The roll was taken with the following result: CSSB 104(FIN) Second Reading Amendment No. 3 YEAS: 18 NAYS: 1 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Halford, Hoffman, Kelly, Leman, Mackie, Miller, Parnell, Pearce, Phillips, Sharp, Taylor, Torgerson, Ward, Wilken Nays: Green Excused: Lincoln and so, Amendment No. 3 was adopted. Senator Donley offered Amendment No. 4 : 1997-04-28 Senate Journal Page 1522 SB 104 Page 1, line 8, following "provisions;": Insert "requiring that uninsured and underinsured motor vehicle insurance apply to claims of an insured even if other policy limits are not exhausted;" Page 2, line 4: Delete "and 110 - 116" Insert "110, 111, and 113 - 117" Page 74, following line 1: Insert a new bill section to read: "* Sec. 112. AS 28.22.201(a) is amended to read: (a) The uninsured and underinsured motorists coverage required under this chapter (1) applies ªDOES NOT APPLYß to bodily injury, sickness, disease, or death of an insured or damage to or destruction of property of an insured even if ªUNTILß the limits of liability bonds and policies that apply have not been used up by payments or judgments or settlements; however, the insurer shall, in each instance, receive a credit against the insured's total damages for amounts actually received by the insured for covered claims from other sources, including liability bonds, other insurance policies, judgments, or settlements; (2) must be a single combined coverage; and (3) may be rejected by the insured in writing; if the insured has rejected uninsured or underinsured coverage, the coverage may not be included in a supplemental, renewal, or replacement policy unless the insured subsequently requests uninsured or underinsured coverage in writing." Renumber the following bill sections accordingly. Page 74, line 3: Delete "and AS 21.81" Insert "AS 21.81; AS 28.20.445(c), 28.20.445(h); AS 28.22.211; and AS28.40.100(a)(22)" Page 74, line 9: Delete "secs. 116, 117, and 119" Insert "secs. 117, 118, and 120" 1997-04-28 Senate Journal Page 1523 SB 104 Page 74, line 11: Delete "Section 113" Insert "Section 114" Senator Donley moved for the adoption of Amendment No. 4. Objections were heard. The question being: Shall Amendment No. 4 be adopted? The roll was taken with the following result: CSSB 104(FIN) am Second Reading Amendment No. 4 YEAS: 18 NAYS: 1 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Halford, Hoffman, Kelly, Leman, Mackie, Miller, Parnell, Pearce, Phillips, Sharp, Taylor, Torgerson, Ward, Wilken Nays: Green Excused: Lincoln and so, Amendment No. 4 was adopted. Senator Taylor moved and asked unanimous consent that the bill be considered engrossed, advanced to third reading and placed on final passage. Without objection, it was so ordered. CS FOR SENATE BILL NO. 104(FIN) am was read the third time. The question being: Shall CS FOR SENATE BILL NO. 104(FIN) am An Act relating to regulation and examination of insurers and insurance agents; relating to kinds of insurance; relating to payment of insurance taxes and to required insurance reserves; relating to insurance policies; relating to regulation of capital, surplus, and investments by insurers; relating to hospital and medical service corporations; relating to the portability and availability of health care insurance; making amendments to the insurance statutes to conform to federal requirements regarding health insurance; relating to the 1997-04-28 Senate Journal Page 1524 SB 104 repeal of certain small employer health care insurance provisions; requiring that uninsured and underinsured motor vehicle insurance apply to claims of an insured even if other policy limits are not exhausted; repealing delayed provisions relating to dental, vision, and hearing insurance in secs. 3 and 4, ch. 101, SLA 1992; repealing delayed provisions relating to small employer health care insurance in secs. 4, 7, 9, and 12, ch. 39, SLA 1993; repealing the delayed effective date in sec. 5, ch. 101, SLA 1992, and in sec. 13, ch. 39, SLA 1993; and providing for an effective date pass the Senate? The roll was taken with the following result: CSSB 104(FIN) am Third Reading - Final Passage Effective Date(s) YEAS: 17 NAYS: 2 EXCUSED: 1 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Hoffman, Kelly, Leman, Mackie, Miller, Parnell, Pearce, Phillips, Sharp, Taylor, Torgerson, Ward, Wilken Nays: Green, Halford Excused: Lincoln and so, CS FOR SENATE BILL NO. 104(FIN) am passed the Senate. Senator Taylor moved and asked unanimous consent that the vote on the passage of the bill be considered the vote on the effective date clauses. Without objection, it was so ordered. Senator Kelly gave notice of reconsideration.