Legislature(2001 - 2002)
04/11/2001 03:01 PM Senate JUD
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
Number 1180
HB 150-INSURANCE PREMIUMS FOR RENTAL VEHICLES
MR. CHARLIE MILLER, representing the ANC Rental Corporation and
Hertz Rental Corporation, said HB 150 takes care of an unintended
omission from a piece of legislation that went through the
Legislature a few years earlier, which made the public policy
decision on how to regulate insurance products that are sold
incidental to the rental contract. That bill required an insurance
agent to hold a premium in a separate fiduciary account. This was
necessary for an agent's business but insurance products were a
small portion of the business and are separate from the contract.
HB 150 allows that requirement to be waived.
MS. AMY ERICKSON, staff to Representative Murkowski, noted that HB
150 is a cleanup measure that corrects a requirement that motor
vehicle rental companies hold rental car insurance in separate
trust accounts. This requirement was unintended and HB 150
eliminates it.
SENATOR THERRIAULT asked for the identification of the original
legislation.
MS. ERICKSON replied it was SB 87 from 1999, which required
licensing for rental car insurance.
SENATOR THERRIAULT read the last sentence from a letter of support
from the Department of Community and Economic Development (DCED),
which said:
Overall, I believe that this bill properly balances the
public's right to be protected from loss of coverage
after premium is paid while keeping the costs of
regulatory compliance reasonable.
CHAIRMAN TAYLOR asked if DCED supported HB 150 and someone from the
audience responded yes.
SENATOR COWDERY moved HB 150 from committee with individual
recommendations. There being no objection, HB 150 moved from
committee.
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