04/14/2016 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB290 | |
| HB234 | |
| HB372 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 125 | TELECONFERENCED | |
| += | HB 305 | TELECONFERENCED | |
| + | HB 290 | TELECONFERENCED | |
| + | HB 372 | TELECONFERENCED | |
| + | HB 234 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 14, 2016
1:35 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Cathy Giessel, Vice Chair
Senator Kevin Meyer
Senator Gary Stevens
MEMBERS ABSENT
Senator Johnny Ellis
COMMITTEE CALENDAR
HOUSE BILL NO. 290
"An Act extending the termination date of the Real Estate
Commission; and providing for an effective date."
- MOVED HB 290 OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 234(L&C)
"An Act relating to insurance coverage for mental health
benefits provided through telemedicine."
- HEARD & HELD
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 372(L&C) AM
"An Act relating to insurance; relating to the annual report by
the director of policies and variable annuities; establishing
limitations on issuance of long-term care insurance; relating to
expenses for insurance examinations; relating to regulations for
insurance; relating to requirements for group health insurance
policies; amending the insurance utilization review, benefits
determination, health care insurance grievance definition of
'group health insurance'; relating to motor vehicle service
contracts; resolution procedures, independent review of adverse
determinations or final adverse relating to notice requirements
for meetings of stockholders or members of a domestic
determinations, independent review organizations, and continuing
education providers; insurer; establishing a definition of 'bona
fide association'; relating to requirements and relating to
required provisions for health care insurance contracts and
policies, penalties for committing a fraudulent or criminal
insurance act; updating criteria for including health care
provider choice; establishing civil penalties for insurers for
failure examinations; relating to rate filing deviations;
establishing civil penalties for certain to provide requested
records; amending the definition of 'wet marine and wilful
violations; and providing for an effective date."
transportation' insurance; amending provisions on limited
licenses to include crop insurance; relating to third-party
administrator notification requirements; relating to
certification filing by reinsurance intermediary brokers;
relating to rate filings, delivery of insurance policies or
endorsements; relating to refunds of variable life insurance
- HEARD & HELD
HOUSE BILL NO. 125
"An Act relating to the sale of products containing
dextromethorphan; relating to the regulation of dextromethorphan
by municipalities; and providing for an effective date."
- SCHEDULED BUT NOT HEARD
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 305(EDC)
"An Act relating to the sale of products containing
dextromethorphan; relating to the regulation of dextromethorphan
by municipalities; and providing for an effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 290
SHORT TITLE: EXTENDING THE REAL ESTATE COMMISSION
SPONSOR(s): LABOR & COMMERCE
02/01/16 (H) READ THE FIRST TIME - REFERRALS
02/01/16 (H) L&C, FIN
03/30/16 (H) L&C AT 3:15 PM BARNES 124
03/30/16 (H) Moved HB 290 Out of Committee
03/30/16 (H) MINUTE(L&C)
03/31/16 (H) L&C RPT 2DP 5NR
03/31/16 (H) DP: HUGHES, OLSON
03/31/16 (H) NR: LEDOUX, TILTON, KITO, JOSEPHSON,
COLVER
04/11/16 (H) FIN AT 8:30 AM HOUSE FINANCE 519
04/11/16 (H) -- MEETING CANCELED --
04/11/16 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/11/16 (H) Moved HB 290 Out of Committee
04/11/16 (H) MINUTE(FIN)
04/12/16 (H) FIN RPT 3DP 5NR 1AM
04/12/16 (H) DP: SADDLER, MUNOZ, THOMPSON
04/12/16 (H) NR: PRUITT, WILSON, GUTTENBERG, GATTIS,
EDGMON
04/12/16 (H) AM: KAWASAKI
04/12/16 (H) TRANSMITTED TO (S)
04/12/16 (H) VERSION: HB 290
04/13/16 (S) READ THE FIRST TIME - REFERRALS
04/13/16 (S) L&C, FIN
04/14/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 234
SHORT TITLE: INSURANCE COVERAGE FOR TELEMEDICINE
SPONSOR(s): REPRESENTATIVE(s) VAZQUEZ
01/19/16 (H) PREFILE RELEASED 1/8/16
01/19/16 (H) READ THE FIRST TIME - REFERRALS
01/19/16 (H) HSS, L&C
03/15/16 (H) HSS AT 3:00 PM CAPITOL 106
03/15/16 (H) Heard & Held
03/15/16 (H) MINUTE(HSS)
03/17/16 (H) HSS AT 3:00 PM CAPITOL 106
03/17/16 (H) Moved HB 234 Out of Committee
03/17/16 (H) MINUTE(HSS)
03/18/16 (H) HSS RPT 3DP 1NR 1AM
03/18/16 (H) DP: TARR, VAZQUEZ, WOOL
03/18/16 (H) NR: TALERICO
03/18/16 (H) AM: SEATON
04/06/16 (H) L&C AT 3:15 PM BARNES 124
04/06/16 (H) Heard & Held
04/06/16 (H) MINUTE(L&C)
04/11/16 (H) L&C AT 3:15 PM BARNES 124
04/11/16 (H) Moved CSHB 234(L&C) Out of Committee
04/11/16 (H) MINUTE(L&C)
04/12/16 (H) L&C RPT CS(L&C) 3DP 3NR
04/12/16 (H) DP: TILTON, HUGHES, OLSON
04/12/16 (H) NR: LEDOUX, KITO, JOSEPHSON
04/13/16 (H) TRANSMITTED TO (S)
04/13/16 (H) VERSION: CSHB 234(L&C)
04/14/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 372
SHORT TITLE: OMNIBUS INSURANCE
SPONSOR(s): LABOR & COMMERCE
03/21/16 (H) READ THE FIRST TIME - REFERRALS
03/21/16 (H) L&C
03/28/16 (H) L&C AT 3:15 PM BARNES 124
03/28/16 (H) Heard & Held
03/28/16 (H) MINUTE(L&C)
03/30/16 (H) L&C AT 3:15 PM BARNES 124
03/30/16 (H) Heard & Held
03/30/16 (H) MINUTE(L&C)
04/04/16 (H) L&C AT 3:15 PM BARNES 124
04/04/16 (H) Heard & Held
04/04/16 (H) MINUTE(L&C)
04/06/16 (H) L&C AT 3:15 PM BARNES 124
04/06/16 (H) Moved CSHB 372(L&C) Out of Committee
04/06/16 (H) MINUTE(L&C)
04/07/16 (H) L&C RPT CS(L&C) 1DP 6NR
04/07/16 (H) DP: OLSON
04/07/16 (H) NR: LEDOUX, TILTON, HUGHES, KITO,
JOSEPHSON, COLVER
04/13/16 (H) TRANSMITTED TO (S)
04/13/16 (H) VERSION: CSHB 372(L&C) AM
04/14/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
LAURA STIDOLPH, Staff
Representative Kurt Olson and
House Labor and Commerce Committee
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced the legislation on behalf of the
sponsor speaking to the following sponsor statement:
KRIS CURTIS, Legislative Auditor
Division of Legislative Audit
Legislative Affairs Agency
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: During the hearing on HB 290, reviewed the
sunset audit findings for the Real Estate Commission.
SARAH CHAMBERS, Operations Manager
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Provided information related to HB 290.
ED MARTIN, representing himself
Cooper Landing, Alaska
POSITION STATEMENT: Testified on HB 290.
TRACI BARICKMAN
Alaska Real Estate Commission
Mat-Su, Alaska
POSITION STATEMENT: Testified in support of HB 290.
ANITA HALTERMAN, Staff
Representative Liz Vazquez
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 234 on behalf of the sponsor.
REPRESENTATIVE LIZ VAZQUEZ
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 234.
LORI WING-HEIER
Director
Division of Insurance
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Provided information related to HB 234.
STACY TONER, Deputy Director
Division of Behavioral health
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 234.
LYN FREEMAN
MIND MATTERS RESEARCH
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 234.
KELLY PUFF, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 234.
DR. AROM EVANS, Medical Director
Orion Behavioral
Eagle River, Alaska
POSITION STATEMENT: Testified in support of HB 234.
KONRAD JACKSON, Staff
Senator Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 372 on behalf of the sponsor.
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Provided information on HB 372.
DAVE DONLEY, representing himself
Anchorage, Alaska
POSITION STATEMENT: Requested the committee amend HB 372.
ACTION NARRATIVE
1:35:01 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:35 p.m. Present at the call to
order were Senators Giessel, Stevens, and Chair Costello.
Senator Meyer arrived soon thereafter. She reviewed the agenda.
HB 290-EXTENDING THE REAL ESTATE COMMISSION
1:35:49 PM
CHAIR COSTELLO announced the consideration of HB 290.
1:36:42 PM
LAURA STIDOLPH, Staff, Representative Kurt Olson, House Labor
and Commerce Committee, sponsor of HB 290, introduced the
legislation on behalf of the sponsor speaking to the following
sponsor statement:
HB 290 extends the sunset date for the Real Estate
Commission to June 30, 2018.
I encourage all the members to review the Legislative
Audit summary and the full audit report. You will see
that in the opinion of our auditors, the Real Estate
Commission is serving the public's interest by
effectively licensing real estate brokers, associate
brokers, and salespersons. Additionally, it was found
that the board worked to improve operations and
industry practices by modifying and adopting
regulations.
MS. STIDOLPH said the audit made two recommendations: 1) the
chair of the Real Estate Commission and the director of
Administrative Services for the Department of Commerce,
Community and Economic Development (DCCED) should work together
to procure a master errors and omissions insurance policy and 2)
the Division of Corporations, Business and Professional
Licensing should take action to ensure that cases are actively
investigated. She concluded that the Real Estate Commission
serves an important role by improving operations and industry
practices by modifying and adopting regulations.
1:38:25 PM
CHAIR COSTELLO asked how many members serve on the commission.
MS. STIDOLPH replied there are five members: two sales persons,
two brokers and one public member.
1:39:12 PM
KRIS CURTIS, Legislative Auditor, Division of Legislative Audit,
reviewed the audit findings for the Real Estate Commission. She
emphasized that the audit recommended a six-year extension on
the condition that the board demonstrate by January 2016 that it
was able to secure a master errors and omissions insurance
policy. Otherwise, the recommendation was for a four-year
extension. She noted the bill calls for a two-year extension.
The audit made two recommendations. First was that the
commission work with DCCED to secure a master errors and
omissions policy for real estate licensees. The law requiring
this insurance became effective in 2010. The department
established the terms and conditions of the insurance in
December 2011 but the board delayed establishing regulations for
the insurance until October 2014. The Division of Corporations,
Business and Professional Licensing and the Division of
Administrative Services cited the reason for the delay was the
overall complexity of the project, the lack of insurance
expertise, and the length of time the commission involved the
Department of Law in drafting the regulations. She advised that
not securing the policy essentially removes the requirement from
all licensees thereby exposing the public to error and omission
risks in real estate transactions.
The second recommendation was for the chief investigator to take
action to ensure that all cases are actively investigated and
completed timely. Of the 235 investigations that were open
during the time period that was audited, significant inactivity
was found in 29 of the 36 cases that were tested. During the
audit, 11 of those inactive cases were closed because of the age
of the matter. The reasons for the excessive time lags were
inadequate monitoring and insufficient oversight to ensure that
investigations were completed timely. The consequence is that
consumers may not have been adequately protected from
incompetent or unlawful licensees.
MS. CURTIS said the department and the commission generally
concurred with the audit recommendations.
1:42:21 PM
CHAIR COSTELLO asked how the audit findings were communicated to
the commission, and the commission's response.
MS. CURTIS explained that there is communication with management
and the board chair during the audit and a formal exit meeting
that describes the findings. A draft of the report is
subsequently sent to both the board chair and the department,
which provides an opportunity for each to provide additional
information. The preliminary report then is provided to the
Legislative Budget and Audit (LB&A) Committee and the board and
department are allowed to formally comment on the report. Those
comments are found at the back of the report.
1:43:13 PM
SENATOR MEYER joined the committee.
SENATOR STEVENS asked what the current recommendation is for an
extension.
MS. CURTIS said she favors four years. The two years proposed in
the bill is acceptable but it means they would begin that audit
work next year.
SENATOR STEVENS asked what it would mean to the audit division
if the bill was amended to four years.
MS. CURTIS said it depends on the year, but next year they will
be very busy with 10 sunset audits.
CHAIR COSTELLO asked if the bill passed several years ago
requiring audits for the departments weighs into the workload.
MS. CURTIS replied it affects her workload but not the audit
staff, and that has been deleted for FY2017 going forward.
1:45:45 PM
SARAH CHAMBERS, Operations Manager, Division of Corporations,
Business and Professional Licensing, Department of Commerce,
Community and Economic Development (DCCED), Juneau, Alaska,
introduced herself.
CHAIR COSTELLO asked her to discuss the financial status of the
Real Estate Commission and comment on the findings in the audit.
MS. CHAMBERS said the Real Estate Commission is in a strong
fiscal condition and has a healthy surplus. With regard to the
recommendations, timely investigations has been a recurring
theme for all boards and commissions, not just the Real Estate
Commission. To address this problem, a new chief investigator
has made structural changes to improve caseload management.
There is also improved engagement and professionalism between
the investigative unit and the Real Estate Commission in an
effort to reduce the number of investigations and the time lag
identified in the audit. In 2015 there were 116 total cases and
only 36 were investigations.
She described the errors and omissions insurance as a sticky
wicket. The initial delay was a result of spending about a year
to get guidance from the Department of Law, followed by a delay
to try to understand how the pieces work together. Once the
commission and the division adopted regulations, a public
invitation for insurers to bid went out in November 2015 and
there was no response. Two comments were that the structure of
providing E&O insurance was not attractive because the insurers
couldn't assess their risk. Insurers had no information on the
risk pool being presented and the $300 cap the division set in
regulation for an annual premium (the cap that sales people and
brokers would pay) was not attractive in the current market. The
division is actively working with the commission to discern the
next step, including an analysis of whether or not new
regulations need to be adopted to raise the premium.
1:51:47 PM
SENATOR STEVENS asked how long it will be before the commission
has E&) insurance.
MS. CHAMBERS replied the hope is to have a plan within the next
year. She pointed out that the E&O policy isn't required in
statute, but a clause within the statute says that if the
commission doesn't have an E&O policy, none of the brokers and
licensees would be required to carry E&O insurance.
SENATOR STEVENS asked what length extension she supports.
MS. CHAMBERS replied the division would work with the timeframe
stated in the bill but having longer might be more efficient and
effective.
1:54:49 PM
SENATOR STEVENS expressed hesitation to extend the sunset to
four years.
MS. CHAMBERS clarified that the commission has seven members,
the majority of which are licensees.
1:55:37 PM
ED MARTIN, representing himself, Cooper Landing, Alaska, stated
the commission ought to be extended a minimum. He expressed
appreciation that the legislature is trying to keep costs down.
1:57:24 PM
TRACI BARICKMAN, Member, Alaska Real Estate Commission,
testified in support of HB 290. She related her personal
experience as a professional realtor. She said the board
operates within its budget and does not burden the state. She
related that most complaints that are filed have a legitimate
foundation and often licensees are disciplined through
education, fines and sometimes suspension or revocation of their
license. She said the commission works to keep regulations up to
date with the constantly changing real estate industry. The
sunset audit last year concluded the commission is serving the
public interest and recommended an extension with the condition
of obtaining a master insurance policy. They are working through
that process and a shorter extension will make it more
difficult. She stressed that to terminate or not extend the
commission would take away an important guardian for consumer
protection.
CHAIR COSTELLO asked if she is saying it would be challenging to
meet the condition of obtaining an E&O policy if the commission
is extended just two years.
MS. BARICKMAN replied she believes it will take at least two
years. She noted that most realtors already carry E&O insurance
and during a recent commission meeting she recommended removing
subsection (e) of the E&O insurance statute. That voids the
requirement for brokers and licensees to carry E&O insurance if
the commission is unable to obtain a master policy. It's not
possible to get a master policy until there is some historical
data and apparently that is lacking.
2:02:34 PM
SENATOR STEVENS asked if she is saying that most licensees carry
E&O insurance regardless of whether the commission does.
MS. BARICKMAN answered yes.
SENATOR STEVENS asked what the exposure is to the public if a
licensee doesn't have this insurance.
MS. BARICKMAN replied the brokers are most at risk.
2:04:23 PM
CHAIR COSTELLO closed public testimony on HB 290. She asked if
there were any questions.
SENATOR STEVENS asked to hear from the department about whether
the public and brokers would be protected if there wasn't a
requirement for the commission to carry a master E&O policy.
2:05:23 PM
MS. CHAMBERS related that the statute says brokers and
salespersons must carry errors and omissions insurance, but they
are exempt from that requirement as long as the Real Estate
Commission doesn't have a master E&O policy. Once the commission
has a policy, everyone under their governance must also carry a
policy either privately or through the master policy. She noted
that a bill that removes the exemption is moving through the
process, but it hasn't passed.
2:06:59 PM
CHAIR COSTELLO found no further questions and solicited a
motion.
2:07:05 PM
SENATOR GIESSEL moved to report HB 290, labeled 29-LS1345\W,
from committee with individual recommendations and attached
fiscal note(s).
2:07:17 PM
At ease
2:07:26 PM
CHAIR COSTELLO announced that without objection, HB 290 passed
from the Senate Labor and Commerce Standing Committee.
2:07:40 PM
At ease
HB 234-INSURANCE COVERAGE FOR TELEMEDICINE
2:09:03 PM
CHAIR COSTELLO announced the consideration of HB 234. She stated
that the intent is to hear from the sponsor and the
administration, take questions from members, hear public
testimony and hold the bill for further review.
2:09:34 PM
ANITA HALTERMAN, Staff, Representative Liz Vazquez, Alaska State
Legislature, stated that HB 234 seeks to require health care
insurers that offer, issue, or renew health insurance plans in
Alaska to reimburse mental health professionals for medically
necessary services delivered using telemedicine via secure phone
or internet video applications. This legislation would not
require an initial face-to-face visit but requires providers be
licensed in Alaska.
HB 234 is a parity bill. Currently, 32 states and the District
of Columbia have telehealth parity laws that require the option
of telemedicine. Only Arizona requires a face-to-face visit
before mental health services can be delivered via telehealth.
2:11:20 PM
CHAIR COSTELLO asked if the lack of face-to-face interactions
has been an issue in other states.
MS. HALTERMAN replied it is appropriate for a mental health
professional to require a face-to-face encounter if they deem it
appropriate. This legislation seeks to prohibit the insurance
industry from imposing that requirement.
CHAIR COSTELLO summarized that the insurance would not check to
see if there was a face to face interaction. The claim would be
handled absent that information.
MS. HALTERMAN agreed.
2:13:21 PM
REPRESENTATIVE LIZ VAZQUEZ, Alaska State Legislature, sponsor of
HB 234, stated that this legislation provides access to medical
care that is often difficult for people living in rural areas to
access. Even in a city as large as Fairbanks there can be access
issues. Some people are also limited by age, mobility, stamina,
and transportation from making a trip to a health care provider.
CHAIR COSTELLO asked if this would cover Medicaid recipients.
She shared that a constituent's son came home from the Alaska
Psychiatric Institute (API) and wasn't willing to visit the
doctor to renew a prescription. The doctor wasn't willing to
make a home visit because transportation wasn't reimbursed.
MS. VAZQUEZ answered yes; Medicaid has the gold standard
regulations for telehealth delivery.
CHAIR COSTELLO asked if she was saying that a phone call to the
doctor would have sufficed.
REPRESENTATIVE VAZQUEZ replied "it could be in that situation."
SENATOR STEVENS asked if the Alaska Native Tribal Health
Consortium delivers mental health services via telemedicine.
MS. HALTEMAN offered her understanding that tribal entities have
federal exemptions that allow flexibility in the use of
telemedicine. She said many of those beneficiaries have dual
eligibility through Medicaid so there is a parity issue and the
private sector is falling behind. She directed attention to the
50-state analysis that gives Alaska an A+ for telehealth for
Medicaid policies and an F for the private sector. She said this
bill is the first of many to come to help improve for people who
currently don't have access.
SENATOR STEVENS commented that parity is crucial and it
shouldn't matter what race you are.
2:18:40 PM
SENATOR GIESSEL added that the Alaska Native Tribal Health
Consortium has been very successful in providing mental health
services through telemedicine for many years. It leads the
nation in this area.
2:19:05 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community and Economic Development (DCCED), stated
that, as the sponsor said, HB 234 provides for telemedicine.
Currently, MODA provides for telemedicine in its policies but
Premera does not in the majority of its plans. The division
worked with the sponsor in the drafting and has no comments.
2:20:12 PM
STACY TONER, Deputy Director, Division of Behavioral health,
Department of Health and Social Services (DHSS), stated support
for HB 234. She stressed the importance of having mental health
services delivered via telehealth. She said tribal organizations
that use the division's services use telehealth to give village
residents access to psychiatrists and mental health
professionals. She noted that telemedicine has been available in
the Medicaid service array for years. The only recommendation is
to use the term "telehealth" rather than telemedicine.
2:21:32 PM
CHAIR COSTELLO opened public testimony.
2:21:44 PM
LYN FREEMAN, Mind Matters Research, testified in support of HB
234. She described her professional experience and education.
She described the mental health intervention she designed and
tested specifically for Alaskans. When she published the
outcomes, the National Institute of Health (NIH) directed her to
make the intervention available to people across Alaska. She was
specifically directed to utilize telemedicine as much as
possible to overcome the barriers to access to care. The NIH
wrote letters of support and asked insurance providers for
assurance that the intervention would be available for patients
in the office setting and through telemedicine. She said she
approached the insurance providers in the state asking for their
support and was stonewalled at every point. She was told that
her patients would not be covered unless she became part of one
of their programs or joined their Teladoc program. She decided
not to treat patients via telemedicine until legislation passed
that would protect both her patients and herself. She urged the
committee to pass the bill.
2:26:33 PM
KELLY PUFF, representing herself, testified in support of HB
234. She related her experience as a parent of a son with autism
and said the family wouldn't be intact if it weren't for home
telehealth. It's made all the difference to their family.
2:28:24 PM
DR. AROM EVANS, Medical Director, Orion Behavioral Health
Network, testified in support of HB 234. He described the
services the company provides throughout the state for children
and adolescents with mental health conditions. This is a
vulnerable population, many of which would not have access to
these services if it weren't for telehealth. Medicaid
beneficiaries are able to receive telehealth services in their
home, but individuals with private insurance don't have access
to these service because their insurance company won't pay.
Oftentimes the option is to pay for an expensive flight to
Anchorage or forego the care. He urged the committee to pass the
bill.
2:32:45 PM
CHAIR COSTELLO closed public testimony on HB 234 and held the
bill in committee for further review.
2:33:08 PM
At ease
HB 372-OMNIBUS INSURANCE
2:36:40 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of HB 372. [CSHB 372(L&C) am is before the
committee.]
2:37:31 PM
KONRAD JACKSON, Staff, Senator Kurt Olson, Alaska State
Legislature, introduced HB 372 the legislation on behalf of the
House Labor and Commerce Committee, speaking to the following
sponsor statement:
House Bill 372 is an insurance statute clean-up bill,
similar to ones introduced every few years.
The bill makes conforming changes to Alaska Statutes
which bring us into compliance with the ever changing
Federal insurance laws. The modernization of several
provisions to Title 21 also include consumer
protection and insurer licensing restrictions.
Your support for this important Title 21 update is
appreciated.
2:38:39 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community and Economic Development (DCCED), Anchorage,
Alaska provided the following sectional analysis for HB 372:
Sec. 1 AS 21.06.110 Director's annual report
that the director include in the annual report the
total number of public comments received and the
director's efforts, to the extent allowable by law, to
improve or maintain public access to information on
the individual health care insurance rate filings
before they become effective. This has been added to
provide the consumer with as notice of the impending
rate filing and the impact it will have on their
healthcare insurance plan.
Sec. 2 AS 21.06.120(a) Examination of insurers
references to the handbooks used throughout the
country for financial and market conduct examinations.
Both publications are published by the National
Association of Insurance Commissioners. Formerly, the
term "Examiners' Handbook" was a sufficient
description as both the financial examination and
market conduct examination handbooks used the term in
their title. Now, however, the "Market Conduct
Examiners Handbook" is no longer published and is part
of the "Market Regulation Handbook".
Sec. 3 AS 21.06.140(f) Conduct of examination
references to the handbooks used throughout the
country for financial and market conduct examinations.
Both publications are published by the National
Association of Insurance Commissioners. Formerly, the
term "Examiners' Handbook" was a sufficient
description as both the financial examination and
market conduct examination handbooks used the term in
their title. Now, however, the "Market Conduct
Examiners Handbook" is no longer published and is part
of the "Market Regulation Handbook".
Sec. 4 AS 21.06.160(a) Examination expense
general agents, third-party administrators,
reinsurance intermediary managers, motor vehicle
service contract providers, and surplus lines brokers
from the requirements of paying for division personnel
and overhead costs relating to an examination; such
entities would still be required to pay for the
division's "out-of-pocket" expenses including travel
expenses and for compensation of a contract examiner,
however, the entities could apply for a waiver from
the director based on financial hardship.
Sec. 5 AS 21.07.005 Regulations relating to health
care insurance policies