Legislature(2009 - 2010)BELTZ 211
04/16/2009 03:45 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB60 | |
| HB108 | |
| HB177 | |
| HB175 | |
| HB222 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 60 | TELECONFERENCED | |
| + | HB 108 | TELECONFERENCED | |
| + | HB 177 | TELECONFERENCED | |
| + | HB 175 | TELECONFERENCED | |
| HB 222 | |||
CSHB 175(L&C)-INSURANCE
5:50:16 PM
CHAIR PASKVAN announced HB 175 to be up for consideration. [CSHB
175(L&C) was before the committee.]
CONRAD JACKSON, staff to Representative Olson, sponsor of HB
175, introduced Ms. Hall for the explanation.
5:51:34 PM
LINDA HALL, Director, Division of Insurance, Department of
Commerce, Community & Economic Development (DCCED), said she
considers a number of things in the bill "clean up;" several are
streamlining processes about issuing licenses to out of state
adjusters, providing third-party administrators be responsible
for their employees, and accepting another regulator's non-
resident felony evaluations. Other things clarify deposits of
domestic and other states' insurers and allow a little more
flexibility for the regulatory with domestic insured deposits.
"Working day" is defined uniformly now throughout the title.
Three sections are uniformity provisions that allow ratio
analysis in examinations submitted to the director from the
National Regulatory Association to be held confidential;
currently just the financial material is held. They have updated
products that can be sold for a limited lines travel license.
MS. HALL remarked that she just received notification that
Alaska is in compliance with all of the National Association of
Insurance Commissioners (NAIC) uniformity standards.
Two new issues are policy calls in sections 11 and 17. Section
11 of this bill permits a director to order a summary suspension
of a producer license if there is a finding that the protection
of the public requires emergency action. This past year she had
two instances of the worst agent behavior she had ever seen in
Alaska. A licensee was taking money from his clients and using
it and not purchasing insurance. Her investigation found 72
victims who were left with virtually no financial protection
should they have a loss. They have filed criminal charges that
have 32 felony counts. This is behavior that if they could not
do a summary suspension this individual could have gone on
taking money as long as he had asked for a hearing and that
order was stayed. The bill has enough protections to prevent
summary suspensions from being abused. The reasons for doing it
are subject to the same reasons in statute for denial or
revocation of a license today; so it doesn't broaden anything,
but it stops behavior that harms the public.
5:55:39 PM
Section 17 allows a health insurance plan to reward a wellness
program without making it considered as a rebate program or
discrimination. Its requirements would meet Health Insurance
Portability and Accountability Act (HIPAA) standards and other
non discriminatory requirements.
The bill defines eligibility for a high risk pool in the same
way as the Permanent Fund Dividend does today, a uniformity
issue. Also, the hospital and medical service corporations make
guaranteed renewability of individual health plans mandatory;
today it is done for group plans; they also make guaranteed
renewability applicable to individual health plans.
5:56:55 PM
CHAIR PASKVAN said the summary suspension for egregious conduct
makes a lot of sense, as do the rewards for wellness. He then
closed public testimony.
5:57:38 PM
SENATOR MEYER moved to report CSHB 175(L&C) from committee with
individual recommendations and attached fiscal note(s). There
were no objections and it was so ordered.
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