2000-01-21                     House Journal                      Page 1967
HB 303                                                                       
HOUSE BILL NO. 303 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act relating to the method of payment of fees and adoption                
of regulations under AS 21; relating to orders under AS 21                     
regarding risk based capital instructions; relating to accounting              
standards for insurance companies; amending the definitions of                 
'creditable coverage' and 'late enrollees' in AS 21.54; relating to            
requirements for small employer insurers; relating to requirements             
for issuance of new voting securities by an insurance company;                 
requiring health care insurance coverage for reconstructive surgery            
following mastectomy; requiring guaranteed renewability of and                 
certification of coverage regarding certain individual health                  
insurance policies; and providing for an effective date."                      
                                                                               
was read the first time and referred to the Labor & Commerce and               
Health, Education & Social Services Committees.                                
                                                                               
The following fiscal note applies:                                             
                                                                               
Zero fiscal note, Dept. of Community & Economic Development,                   
1/21/00                                                                        
                                                                               
                                                                               
The Governor's transmittal letter dated January 20, 2000, appears              
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               

2000-01-21                     House Journal                      Page 1968
HB 303                                                                       
I am transmitting a bill relating to financial regulation of insurance         
companies and amending the state's 1997 insurance act to comply with           
federal requirements for health care insurance involving individuals,          
groups, and small employers.                                                   
                                                                               
                                                                               
The bill would amend the insurance code with respect to the                    
accounting standards followed by insurers when reporting annually on           
their financial condition to the director of the division of insurance.        
Under the bill, certain statutes related to the reporting of insurance         
company assets and liabilities are amended to eliminate provisions that        
are obsolete or that conflict with new accounting standards adopted by         
the National Association of Insurance Commissioners (NAIC).                    
Existing law requires insurers doing business in this state to adhere to       
such standards.  This also ensures Alaska will maintain its                    
accreditation as a state with effective insurer solvency regulation.           
                                                                               
                                                                               
With respect to health care insurance, the bill puts Alaska in                 
compliance with the federal Health Insurance Portability and                   
Accountability Act of 1996 requiring guaranteed renewal of individual          
policies.  Although the legislature three years ago passed amendments          
to the insurance code to conform to this federal law, that legislation         
relied on covering the market through the existing high-risk pool.  But        
that did not take into consideration those who do not participate in the       
pool.  This bill corrects that omission.  In addition, this bill               
incorporates a 1998 federal mandate under the Women's Health and               
Cancer Rights Act requiring insurers to cover reconstructive surgery           
following mastectomies.                                                        
                                                                               
                                                                               
This bill also includes several "clean-up" items to correct inadvertent        
errors and omissions and clarify changes made in the 1997 state law.           
                                                                               
I urge your prompt and favorable action on this measure.                       
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"