Legislature(2019 - 2020)BELTZ 105 (TSBldg)
05/10/2019 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB106 | |
| HB104 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 106 | TELECONFERENCED | |
| *+ | HB 104 | TELECONFERENCED | |
SB 106-HOMEOWNER/RENTER INSURANCE RENEWAL
1:32:04 PM
CHAIR REINBOLD announced that the first order of business would
be SENATE BILL NO. 106, "An Act relating to renewal of insurance
coverage for homeowners and renters; and providing for an
effective date."
{Before the committee was the proposed committee substitute (CS)
for SB 106( ), 31-LS0476\M, Version M.]
1:32:31 PM
SENATOR COSTELLO explained that her amendment would have added
in commercial businesses. She said that she has held discussions
but has decided not to incorporate her amendment into the bill.
She thanked the sponsor for working with her on this matter.
1:33:35 PM
SENATOR COSTELLO withdrew Amendment 1, work order M.2 previously
adopted at the 5/9/19 meeting, work order 31-LS0476\M.2, Marx,
5/8/19.
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR COSTELLO
TO: CSSB 106( ), Draft Version "M"
Page 1, line 1, following "Act":
Insert "relating to cancellation and renewal of
commercial property insurance coverage;"
Page 1, following line 3:
Insert a new bill section to read:
"* Section 1. AS 21.36.210 is amended by adding a
new subsection to read:
(g) An insurer may not exercise its right to
cancel a policy of commercial property insurance
solely based on notice, receipt, or payment of a claim
under the policy unless the insurer has paid a claim
under the policy within the three-year period
immediately preceding the notice, receipt, or
payment."
Page 1, line 4:
Delete "Section 1"
Insert "Sec. 2"
Renumber the following bill sections accordingly.
Page 2, line 12, following "homeowner's":
Insert "or commercial property"
Page 3, following line 13:
Insert a new bill section to read:
"* Sec. 5. AS 21.36.310 is amended by adding a new
paragraph to read:
(6) "commercial property insurance" means
property insurance as described in AS 21.12.060 that
is "business or commercial insurance" as defined in
this section."
Renumber the following bill sections accordingly.
Page 3, lines 16 - 18:
Delete all material and insert:
"APPLICABILITY. AS 21.36.210(g), enacted by sec.
1 of this Act, AS 21.36.240, as amended by secs. 2 and
3 of this Act, AS 21.36.310(4), as amended by sec. 4
of this Act, and AS 21.36.310(6), enacted by sec. 5 of
this Act, apply to an insurance policy or contract
entered into or renewed on or after the effective date
of secs. 1 - 5 of this Act."
Page 3, line 25:
Delete "Section 5"
Insert "Section 7"
Page 3, line 26:
Delete "sec. 6"
Insert "sec. 8"
CHAIR REINBOLD asked to place on the record that the committee
received letters of opposition from the National Association of
Mutual Insurance Companies, and the American Property Casualty
Insurance Association to Amendment 1. She understood their
concerns. However, this matter needs to be addressed. Many
businesses in her community want to close down due to theft and
crime. She urged everyone to work together with local businesses
and insurance companies to reduce the rampant theft in Alaska's
communities.
CHAIR REINBOLD removed her objection.
Amendment 1, previously adopted, was withdrawn.
1:35:20 PM
CHAIR REINBOLD moved to adopt Amendment 2, work order 31-
LS0476\M.4, Marx, 5/9/19.
AMENDMENT 2
OFFERED IN THE SENATE BY SENATOR REINBOLD
TO: CSSB 106( ), Draft Version "M"
Page 2, lines 11 - 15:
Delete all material and insert:
"(b) In addition to the requirements in (a) of this
section, an insurer may not fail to renew a homeowner's
insurance policy based solely on the earliest claim made by
the insured within the three-year period immediately
preceding the policy's annual anniversary if the claim
arises from a criminal act committed by a third party. In
this subsection, "homeowner's insurance" includes coverage
described in AS 21.36.460(i)(7)(B) and (C)."
SENATOR COSTELLO objected for discussion purposes.
CHAIR REINBOLD read Amendment 2.
1:36:19 PM
SENATOR TOM BEGICH, Alaska State Legislature, Juneau, explained
that the two changes in Amendment 2 were worked out through
discussions with the insurance industry. First, Amendment 2
would ensure that failure to renew a homeowner's insurance
policy is not based solely on the earliest claim made. He
characterized it as giving the insurance agency little more
flexibility related to issues outside of the scope of a criminal
act. He said that Amendment 2 narrowed it down to criminal acts
committed by a third party. He clarified that a criminal act
could be committed by a party within a home and a claim could be
made. However, that is a different issue entirely. In this
instance it relates to situations in which a person is the
victim of a crime that the person was unaware of. He said he
wholly supports this amendment. He encouraged members to adopt
the amendment.
1:37:42 PM
SENATOR BIRCH raised a procedural question. He asked whether
action the committee took at the last hearing on Amendment 1 was
rescinded.
1:38:34 PM
SENATOR COSTELLO pointed out Amendment 2 was before the
committee.
CHAIR REINBOLD asked members to consider the motion before them,
which is Amendment 2.
SENATOR COSTELLO withdrew her objection.
1:38:47 PM
SENATOR BIRCH clarified that this limits it to criminal acts
committed by a third party, which is a fairly narrow limit.
SENATOR BEGICH answered that is correct.
CHAIR REINBOLD heard no further objections and Amendment 2 was
adopted.
CHAIR REINBOLD solicited a motion to rescind the committee's
action on Amendment 1.
1:39:35 PM
SENATOR COSTELLO made a motion to rescind the committee's action
to adopt Amendment 1, work order 31-LS0476\M.2, Marx, 5/8/19,
which was previously adopted by the committee on 5/19/19.
There being no objection, the Senate Labor and Commerce Standing
Committee's action to adopt Amendment 1 was rescinded.
CHAIR REINBOLD indicated SB 106, as amended, was before the
committee.
1:39:55 PM
SENATOR COSTELLO moved to report SB 106, work order 31-LS0476\M,
as amended, from committee with individual recommendations and
attached fiscal note.
CHAIR REINBOLD found no objection and the committee substitute
for SB 106 (L&C) was reported from the Senate Labor and Commerce
Standing Committee Standing Committee.
1:40:35 PM
At-ease.