Legislature(2025 - 2026)GRUENBERG 120
05/07/2025 01:00 PM House JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| HB211 | |
| HB159 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 211 | TELECONFERENCED | |
| += | HB 159 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | HB 170 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 211-INSURANCE: PREPAID LEGAL PLANS
1:08:28 PM
CHAIR GRAY announced that the first order of business would be
HOUSE BILL NO. 211, "An Act relating to insurance regulation of
prepaid legal plans."
1:08:45 PM
REPRESENTATIVE NELLIE UNANGIQ JIMMIE, Alaska State Legislature,
as prime sponsor, presented HB 211. She paraphrased the sponsor
statement [included in the committee packet], which read as
follows [original punctuation provided]:
House Bill 211 exempts prepaid legal plans from
regulation as an insurance product.
It is hard to get legal services in Alaska, especially
if you have fixed/limited income or live in a rural
area. Pro bono and public services help to fill the
gap, but access to justice remains a challenge.
A prepaid legal plan is like a subscription service
for bar-accredited lawyers. For a monthly or annual
fee, a subscriber can get help with anything on the
plan's "menu" of legal services, like document review;
will preparation; traffic tickets; legal advice and
research; and a set number of hours of civil trial
defense. These services are less expensive than hiring
an attorney the traditional way, which often means
paying large upfront costs.
Right now, prepaid legal plans are regulated as
insurance. But there is no indemnification against
financial loss, which is an important part of most
health or auto insurance plans. The fees for a lawyer
and the services a plan user gets are pre-set and
limited.
House Bill 211 exempts prepaid legal plans from
regulation as an insurance product and treat them like
a subscription service. This removes a barrier for
Alaskans that would use a prepaid legal plan to get
help from a lawyer they would not be able to
otherwise. Alaskans will still be able to file
complaints about an attorney's professional misconduct
through the Alaska Bar Association.
I hope to earn your support for House Bill 211, which
will make it easier for people across Alaska to get
legal help. Please feel free to contact Keenan Miller
in my office with questions. He may be reached at
[email protected] or (907) 465-5141.
1:09:49 PM
KEENAN MILLER, Staff, Representative Nellie Unangiq Jimmie,
Alaska State Legislature, on behalf of Representative Jimmie,
prime sponsor, explained that prepaid legal plans have been on
the market for 50 years. They can provide the same services as
a lawyer for less money and encourage people to get legal advice
before small issues become larger ones. If the bill were to
pass, he said Alaskans would still be safe from unethical
lawyers because there is a complaint process for bar accredited
lawyers in Alaska through the Alaska Bar Association (ABA).
1:11:39 PM
MARK NELMS, Assistant General Counsel, LegalShield, explained
that LegalShield itself does not provide legal services;
instead, it offers legal plans that provide access to legal
help. With a family legal plan, one could contact a provider
law firm for consultation on any personal legal matter. The
firm could review documents, write letters or make phone calls,
and assist on wills or estate planning documents among other
benefits. Importantly, the provider law firm model is a non-
indemnity legal services plan, as LegalShield does not indemnify
members for legal fees, reimbursements, or claims. He said the
bill would bring clarity and modernization to the law and exempt
modern non-indemnity legal claims from insurance. It would also
align Alaska with the vast majority of other states and bring
greater economic opportunity to the state, as independent sales
associates sell legal plans in the state, which offers part-time
meaningful income. Currently, these sales associates are
required to have a license and pay fees to sell legal plans in
Alaska, but the proposed legislation would remove that barrier.
In addition, HB 211 would improve access to justice for those
who cannot obtain an attorney. He commented on the Alaska
Fairness and Access Commission and the gap in access to legal
aid. He added that legal plans would offer legal assistance to
Alaskans in every area of the state from remote to urban.
1:17:08 PM
REPRESENTATIVE MINA asked Mr. Nelms how companies like
LegalShield would address the gap in legal services for
Alaskans.
MR. NELMS shared that legal plan fills the gap between those who
can afford an attorney and those who qualify for legal aide.
Legal plans give access to provider law firms or individual
attorneys for an affordable monthly subscription fee.
1:19:26 PM
REPRESENTATIVE UNDERWOOD asked how many LegalShield members are
in Alaska now, and if the bill were to pass, how this type of
business model would grow.
MR. NELMS reported that LegalShield has approximately 1,043
members in Alaska. He opined that the bill would help these
services grow and address underserved areas in Alaska that lack
attorneys.
1:20:51 PM
REPRESENTATIVE EISCHEID questioned the cost of the monthly
subscription plan.
MR. NELMS responded the plans range from $29.95 for a family
plan to $59.95 for a more comprehensive plan. Small business
plans are also offered, which cost $49 per month.
CHAIR GRAY asked whether this work is always done remotely.
MR. NELMS said there are opportunities for in-person legal work
or for council to appear in court. There are also certain trial
defense benefits for cases such as landlord/tenant disputes.
CHAIR GRAY noted that there are many places in Alaska that
cannot be reached by road.
1:24:57 PM
REPRESENTATIVE UNDERWOOD questioned the number of businesses
with similar business models that offer these services in
Alaska.
MR. NELMS said he was not familiar with many businesses that
offer the same services in Alaska.
1:25:43 PM
REPRESENTATIVE JIMMIE listed a number of companies that offer
legal plans in Alaska: Metlife, ARA, and Lombino Martino
Professional Services Corporation, which is a provider firm for
LegalShield.
1:26:22 PM
JOE LOMBINO, Managing Partner, Lombino Martino, shared
background on Lombino Martino, which is the Alaska LegalShield
provider law firm based in Washington. He explained that 3 of
the firm's 17 attorneys are licensed in Alaska and there are 17
customer services representatives who also assist with calls.
He reported that in 2024, Lombino Martino consulted with 1,335
individuals or businesses in Alaska and drafted 43 wills for
Alaskans. He shared how prepaid legal plans work and said the
vast majority of callers sit somewhere in between being able to
afford an attorney and those who might qualify for legal aide.
He said prepaid legal plans allow people to call in and get
their questions answered without paying astronomical hourly
rates.
1:33:09 PM
REPRESENTATIVE EISCHEID asked whether the legal plans are
monthly or whether an annual subscription is required.
MR. LOMBINO said LegalShield handles all the plan pricing. He
emphasized that his firm has nothing to do with the cost
regardless of the difficulty of the case. He emphasized that
the two companies to do not interface.
CHAIR GRAY asked whether Mr. Lombino is a member of the ABA.
MR. LOMBINO answered yes.
CHAIR GRAY questioned the recourse for malpractice.
MR. LOMBINO said his attorneys are bound by the ABA rules of
professional conduct. He said attorneys could be disbarred if a
complaint were levied to the bar and they broke the rules of
professional conduct; however, he assured the committee that his
firm has never received a complaint.
1:37:55 PM
CHAIR GRAY expressed concern that the legal plans are fair and
that clients are getting their money's worth.
MR. LOMBINO said complaints can be filed with LegalShield if
members are unhappy with council. Members can also call Lombino
Martino to make a formal or informal complaint if they didn't
"click" with their attorney, for example, and the complaint will
be resolved.
1:40:32 PM
REPRESENTATIVE UNDERWOOD asked, if the bill were to pass,
whether these companies would benefit financially.
MR. LOMBINO answered yes, profits to LegalShield and Lombino
Martino would increase, as would access to legal services in
rural Alaska. He reiterated that these non-indemnity legal
plans would not provide for reimbursement for any expense
incurred by the member and would not provide for indemnification
or malice when there is a legal issue, which differentiates them
from insurance.
1:43:31 PM
CHAIR GRAY asked whether the state supports the bill.
1:43:41 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community & Economic Development (DCCED), said the
division is neutral on the bill; however, some of the testimony
provided today is concerning based on an opinion from the
Attorney General's Office recommending that LegalShield not do
business in Alaska until its clarified whether they are included
or excluded from Title 21.
CHAIR GRAY asked whether legal plans should be regulated as
insurance.
MS. WING-HEIER said that is a policy call for the legislature.
She conveyed that in the past, the legislature has requested
direct healthcare agreements, such as air ambulance, to be taken
under Title 21.
CHAIR GRAY sought to confirm that there's precedence for taking
something that was insurance and making it something else.
MS. WING-HEIER answered, "Correct."
1:45:14 PM
REPRESENTATIVE MINA spoke to consumer protection and shared her
understanding that the Consumer Protection Unit is one path of
recourse for members. She said it would be helpful to hear from
them at the next bill hearing.
1:46:24 PM
The committee took a brief at-ease at 1:46 p.m.
1:46:32 PM
CHAIR GRAY opened public testimony on HB 211. After
ascertaining that no one wished to testify, he closed public
testimony and announced that the bill would be held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 211 Fiscal Note DCCED.pdf |
HJUD 5/7/2025 1:00:00 PM |
HB 211 |
| HB 211 Version A.pdf |
HJUD 5/7/2025 1:00:00 PM |
HB 211 |
| HB 211 Sponsor Statement Version A.pdf |
HJUD 5/7/2025 1:00:00 PM |
HB 211 |
| HB 211 Sectional Analysis Version A.pdf |
HJUD 5/7/2025 1:00:00 PM |
HB 211 |