03/29/1999 01:38 PM Senate JUD

                  SB  87-RENTAL CAR INSURANCE                                                                                   
                                                                                                                                
MR. CHARLIE MILLER, representing Republic Industries, said SB 87                                                                
allows for limited licencing of rental car agencies for the                                                                     
incidental sale of insurance. The bill gives jurisdiction to the                                                                
Department of Commerce and Economic Development to issue these                                                                  
licences and regulate sales. MR. MILLER explained the only change                                                               
in the proposed Labor and Commerce committee substitute is that                                                                 
liability insurance and underinsured motorist coverage has been                                                                 
"unbundled" and no longer have to be bought together. He explained                                                              
the reason behind the bill is litigation in other states due to                                                                 
uncertainty in the statute which allows departmental oversight in                                                               
this area.                                                                                                                      
                                                                                                                                
MR. MILLER stated the bill was brought forward at the request of                                                                
the Division of Insurance.                                                                                                      
                                                                                                                                
Number 048                                                                                                                      
                                                                                                                                
CHAIRMAN TAYLOR stated he has never thought of a rental car agent                                                               
as an insurance agent but, in fact, they are and this bill will                                                                 
allow some control over the sale of insurance by these agents. He                                                               
guessed the Department has probably been concerned by the sale of                                                               
insurance by unlicenced individuals.                                                                                            
                                                                                                                                
SENATOR TORGERSON asked if there will be a fee charged to licence                                                               
these agents, and if there had been a fiscal note submitted by the                                                              
Division of Insurance. He  thought he recalled a zero fiscal note                                                               
from them.                                                                                                                      
                                                                                                                                
MR. MILLER explained there would be a designated representative                                                                 
from each agency, at each location, that would be trained and                                                                   
tested in insurance sales. Additionally, each company would be                                                                  
responsible for the conduct of each of its employees.                                                                           
                                                                                                                                
Mr. Howard Conklin, testifying via teleconference from Florida on                                                               
behalf or Republic Industries, said SB 87 is a proactive measure to                                                             
find the appropriate licensure for this situation. It will benefit                                                              
travelers as well as Alaskans who might be involved in accidents                                                                
with people traveling by rental car.                                                                                            
                                                                                                                                
Number 157                                                                                                                      
                                                                                                                                
SENATOR DONLEY moved CSSB 87(L&C) from committee with individual                                                                
recommendations. Without objection, CSSB 87(L&C) moved from                                                                     
committee with individual recommendations.