Legislature(2007 - 2008)BELTZ 211
05/03/2007 01:30 PM Senate LABOR & COMMERCE
Audio | Topic |
---|---|
Start | |
HB136 | |
HB170 | |
SB117 | |
SB94 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
*+ | SB 94 | TELECONFERENCED | |
+ | HB 170 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
+= | SB 117 | TELECONFERENCED | |
+= | SB 99 | TELECONFERENCED | |
+= | HB 136 | TELECONFERENCED | |
CSHB 170(FIN)-INSURANCE 1:37:23 PM CHAIR ELLIS announced HB 170(FIN) to be up for consideration. LINDA HALL, Director Division of Insurance, explained that she requested this bill. She explained that it has two purposes; the basic one is financial regulation enactment of measures she needs to maintain the division's National Association of Insurance Commissioners (NAIC) accreditation. Alaska and all other states are accredited by the NAIC as part of their solvency oversight. Each state relies on the quality of other state's financial review and oversight and the accreditation process insures that Alaska's financial regulation meets certain standards. Alaska has been accredited for several years. She said the basic model regulations are actually part of the financial statement and they are referenced in AS 21.09.200. The financial statement instructions are going away and she is seeking to have them put into statute so she still has the authority to enforce them. MS. HALL said the director can require a report describing internal controls and request reports of misstatement of financial conditions from a CPA. Basically, she is making sure the division is doing appropriate financial oversight. 1:39:04 PM Section 3 requires that the custodial oversight is in writing and clarifies who can have the assets of the insurer. The idea is to make sure the risk of insurers becoming insolvent because of dishonest or unqualified custodians does not exist. These are the main financial pieces, she said. MS. HALL said another clarification includes tax equalization - if other states charge our domestic insurers their higher rate of premium tax, Alaska will charge, in return, their companies the higher rate of tax. "It's not meant to be punitive." She said sections 9, 12, and 13 clarify that retaliatory fees are not to negate various premium tax credits this body has enacted in prior pieces of legislation. Last year a bill passed that gave premium tax credits for contributions to the high risk health insurance pool. She wants to make sure insurers who are paying those assessments are not penalized. The same thing is true for charitable contributions to colleges or the Alaska Fire Standards Counsel. The balance of the bill deals with changing words such as "directive" to "order" because Ms. Hall said she issues orders, not directives. Changes were made in high deductible health insurance plans so that they meet IRS standards. Guarantee Association references were changed so that an insurance company that is authorized to write health insurance policies in Alaska can be assessed for administrative charges. Unless they actually write policies they would not pay insolvency assessments. The rest of the bill gives her authority to adopt regulations and it has some "unusual" effective dates. 1:41:08 PM Pieces of bill, she said, are not effective until 2010 because they impact industry. This effective date gives them time to adjust to changes in the bill. She has heard no negative testimony about the bill. 1:41:38 PM SENATOR BUNDE said considering the late date of the session, he would be comfortable moving it now. CHAIR ELLIS asked if anyone would like to testify on this bill. He saw none. He asked Ms. Hall if she wanted to comment. MS. HALL said she has not heard of any opposition and she had taken care of the one concern that was raised. 1:42:18 PM SENATOR STEVENS moved to pass CSHB 170(FIN) from committee with individual recommendations and attached fiscal note. There were no objections and it was so ordered.
Document Name | Date/Time | Subjects |
---|