Legislature(2025 - 2026)BELTZ 105 (TSBldg)
04/02/2025 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB132 | |
| SB133 | |
| SB4 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 132 | TELECONFERENCED | |
| += | SB 133 | TELECONFERENCED | |
| += | SB 4 | TELECONFERENCED | |
SB 132-OMNIBUS INSURANCE BILL
1:32:50 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO.
132 "An Act relating to insurance; and providing for an
effective date."
1:33:29 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, presented a brief recap of SB 132
and stated that this legislation is the omnibus insurance bill
that updates Title 21: Insurance Statutes. SB 132 makes
technical changes to align with revisions to the insurance
industry terminology, adopt National Association of Insurance
Commissioners (NAIC) model laws, and refresh references to
federal statutes.
1:35:16 PM
CHAIR BJORKMAN asked how the proposed Owner Controlled Insurance
Program (OCIP) changes would benefit the market, specifically in
lowering limits, and what the current capacity and needed
adjustments to ensure multi-dwelling projects can obtain
insurance.
1:36:09 PM
LORI WING-HEIER, Director, Division of Insurance, Anchorage,
Alaska, answered questions relating to SB 132 and replied that
Owner-Controlled and Contractor-Controlled Insurance Programs
(OCIPs/CCIPs) are similar, with the difference being who
purchases the insurance. She said these programs cover all
insurance on large projects, providing workers' compensation and
liability insurance for the project site during construction.
She said benefits include avoiding subrogation disputes and
reducing markups in contractor bids. Examples include the Trans-
Alaska Pipeline System (TAPS) and airport projects. She said in
the current hard insurance market, some sponsors propose
allowing OCIPs/CCIPs for multi-residential projects with a $5
million threshold. The division sees some merit but argues $5
million is too low. At the $5 million threshold, projects may
not qualify as "major construction," and shifting payroll and
revenue into the large projects there won't be much available
premium for insurers, leaving little incentive to cover smaller
contractors. She said she was concerned that a $5 million limit
may distort the market, though a higher threshold might be
reasonable.
1:38:59 PM
SENATOR YUNDT asked if the $5 million is the value of the
project or the amount in payroll.
1:39:08 PM
MS. WING-HEIER replied that $5 million is the value of the
project, which is a multi-residential 5 unit project.
SENATOR YUNDT replied that is a small number.
MS. WING-HEIER expressed her agreement.
1:40:10 PM
CHAIR BJORKMAN [resumed public testimony from March 26, 2025];
finding none, he closed public testimony on SB 132.
1:40:31 PM
CHAIR BJORKMAN held SB 132 in committee.
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