05/15/2025 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

             SB 185-INSURANCE; REBATES; ADVERTISING                                                                         
                                                                                                                                
2:11:48 PM                                                                                                                    
CHAIR   MERRICK  reconvened   the   meeting   and  announced   the                                                              
consideration  of SENATE  BILL NO.  185  "An Act  relating to  the                                                              
business  of  insurance;  relating  to  exceptions  to  prohibited                                                              
rebates; relating  to the powers  of the director of  the division                                                              
of   insurance;   relating   to  prohibited   practices   in   the                                                              
advertisement  of  insurance;  and   providing  for  an  effective                                                              
date."                                                                                                                          
                                                                                                                                
2:12:12 PM                                                                                                                    
SAVAYA  BIEBER,  Staff,  Senator   Jesse  Bjorkman,  Alaska  State                                                              
Legislature,  Juneau, Alaska,  paraphrased  the sponsor  statement                                                              
for SB 185:                                                                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
             SB 185 Insurance; Rebates; Advertising                                                                             
                       Sponsor Statement                                                                                        
                           Version N                                                                                            
                                                                                                                                
     Senate Bill  185 updates Alaska's insurance  statutes to                                                                   
     provide   clarity  and   flexibility  around   allowable                                                                   
     business  practices.  This legislation  aligns  Alaska's                                                                   
     statutes  with  national  best practices  and  the  NAIC                                                                   
     Model Act.                                                                                                                 
                                                                                                                                
     SB  185   modernizes  Alaska's  anti-rebating   laws  by                                                                   
     clearly  defining exceptions  for value-added  services,                                                                   
     wellness  incentives, educational  tools, and  low-value                                                                   
     promotional   gifts.  It  ensures   that  insurers   and                                                                   
     producers   can  offer   beneficial   programs  to   the                                                                   
     consumer, such  as programs including health  apps, risk                                                                   
     reduction tools, or financial wellness services.                                                                           
                                                                                                                                
     Under this bill,  insurers may also run  pilot programs,                                                                   
     provide   charitable   donations,   or   host   raffles,                                                                   
     provided  they follow strict  fairness and  transparency                                                                   
     guidelines.   Additionally,  the  legislation   provides                                                                   
     consumer protection  by prohibiting deceptive  marketing                                                                   
     claims  that  suggest  insurance  is free  or  that  one                                                                   
     policy is  being offered solely  to induce the  purchase                                                                   
     of another.                                                                                                                
                                                                                                                                
     SB   185   promotes   innovation,    supports   consumer                                                                   
     engagement,  and levels the  playing field for  insurers                                                                   
     operating   in  multiple  states.   This  bill   ensures                                                                   
     Alaskans  have  access  to   modern  insurance  services                                                                   
     while maintaining strong consumer protections.                                                                             
                                                                                                                                
     I  urge support  of  Senate Bill  185  to ensure  Alaska                                                                   
     remains  aligned with national  standards while  serving                                                                   
     the  best  interests  of  consumers   and  the  industry                                                                   
     alike.                                                                                                                     
                                                                                                                                
MS.  BIEBER said  that SB  185 would  align  Alaska with  national                                                              
insurance  standards, adding  the  Gramm-Leach-Bliley  Act to  the                                                              
statutory  list  of federal  laws  governing trade  practices  and                                                              
fraud.                                                                                                                          
                                                                                                                                
2:13:06 PM                                                                                                                    
CHAIR MERRICK opened public testimony on SB 185; finding none,                                                                  
she closed public testimony.                                                                                                    
                                                                                                                                
[2:13:20]                                                                                                                       
CHAIR MERRICK solicited a motion.                                                                                               
                                                                                                                                
2:13:25 PM                                                                                                                    
SENATOR DUNBAR moved to report SB 185, work order 34-LS0721\N,                                                                  
from committee with individual recommendations and attached                                                                     
fiscal note(s).                                                                                                                 
                                                                                                                                
2:13:43 PM                                                                                                                    
CHAIR  MERRICK found  no objection  and SB 185  was reported  from                                                              
the Senate Community and Regional Affairs Standing Committee.