03/28/1995 02:10 PM Senate L&C

 SL&C 3/28/95                                                                  
           SB  95 INSURANCE AGAINST UNINSURED DRIVERS                         
                                                                              
 CHAIRMAN KELLY called the Senate Labor and Commerce Committee                 
 meeting to order at 2:10 p.m. and announced SB 95 to be up for                
 consideration.                                                                
                                                                               
 JOSH FINK, Legislative Aide to Senator Kelly, testified that the              
 proposed committee substitute drops the $1 million/$2 million                 
 mandatory coverage to $500,000/$1 million.  The Chairman decided              
 that the Tumbleson issue could best be taken care of in the Senate            
 Judiciary Committee.                                                          
                                                                               
 SENATOR DAVE DONLEY said he personally wanted a $1 million/$1                 
 million mandated offer as the Division recommended and as the state           
 of North Carolina, a recognized leader in mandatory auto insurance,           
 requires.  The reinsurance is clearly out there for that figure.              
 Alaska would no longer be in a unique position, but consumers would           
 have the option to buy the $1 million worth of coverage.                      
                                                                               
 SENATOR TORGERSON moved to adopt the committee substitute, version            
 K, to SB 95.  There were no objections and it was so ordered.                 
                                                                               
 SENATOR SALO asked if the question of $1 million/$1 million would             
 be taken up in the Judiciary Committee or should that be taken up             
 now.  She asked the reason for $500,000/$1 million.                           
                                                                               
 SENATOR KELLY said they felt it would encourage more competition              
 and allow more insurance companies to compete in the State of                 
 Alaska.  He thought it would be debated on the Floor, if not in the           
 Judiciary Committee.                                                          
                                                                               
 Number 92                                                                     
                                                                               
 SENATOR TORGERSON moved to pass CSSB 95 (L&C) from committee with             
 individual recommendations.  There were no objections and it was so           
 ordered.