04/28/2005 01:30 PM Senate LABOR & COMMERCE

      CSHB 216(FIN)TITLE AM-INSURANCE RATES,FORMS,& FILING                                                                  
                                                                                                                              
2:10:00 PM                                                                                                                    
CHAIR SEEKINS announced HB 216 to be up for consideration.                                                                      
                                                                                                                                
JOSH APPLEBEE,  staff to Representative Tom  Anderson, sponsor of                                                               
HB 216,  said that it  is an  insurance rate regulation  bill. He                                                               
explained  that   under  existing  law,  property   and  casualty                                                               
insurance  rates   and  forms  are   subject  to   the  insurance                                                               
commissioner's prior  approval before they  can be put  in place.                                                               
HB  216 maintains  the commissioner's  authority  to oversee  the                                                               
rate changes,  but allows  an insurer to  make rate  increases or                                                               
decreases within  the flex  band without  having to  obtain prior                                                               
approval from  him. The flex band  is defined as a  cumulative 10                                                               
percent shift in rates within a 12-month period.                                                                                
                                                                                                                                
He  said that  HB 216  has three  basic purposes.  It creates  an                                                               
environment where  insurers compete more vigorously  on rates and                                                               
products offered to consumers; it  encourages insurers who are in                                                               
the Alaska market to stay here  and hopefully it will attract new                                                               
insurers  to  Alaska,  which would  result  in  more  competition                                                               
giving  consumers  more  choices and  more  competitive  pricing.                                                               
Third, HB  216 is  in alignment with  the national  movement away                                                               
from  strict government  price controls  towards a  flexible more                                                               
competition-oriented  system  for  the  regulation  of  insurance                                                               
rates  and  insurance  forms.  It  would  modernize  the  state's                                                               
regulation system.                                                                                                              
                                                                                                                                
2:13:12 PM                                                                                                                    
CHAIR SEEKINS asked if this is exactly the same as SB 168.                                                                      
                                                                                                                                
MR. APPLEBEE replied yes.                                                                                                       
                                                                                                                                
CHAIR  SEEKINS asked  if anyone  wanted to  testify against  this                                                               
bill. Seeing no response, he asked the will of the committee.                                                                   
                                                                                                                                
2:13:30 PM                                                                                                                    
SENATOR BEN STEVENS moved to pass CSHB 216(TITLE AM) from                                                                       
committee with individual recommendations and attached fiscal                                                                   
note. There were no objections and it was so ordered.