Legislature(2013 - 2014)BELTZ 105 (TSBldg)
04/01/2014 03:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB214 | |
| HB204 | |
| HB141 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 214 | TELECONFERENCED | |
| + | HB 204 | TELECONFERENCED | |
| + | HB 141 | TELECONFERENCED | |
SB 214-INSURANCE ADJUSTER LICENSING
3:34:12 PM
CHAIR DUNLEAVY announced the consideration of SB 214. "An Act
relating to insurance adjuster licensing." This was the first
hearing.
3:34:28 PM
STEVE RICCI, Aide, Senate Labor & Commerce Committee, introduced
SB 214 on behalf of the committee. He spoke to the following
sponsor statement:
The product that is at the heart of this bill is an
insurance program that protects a consumer's
investment in their wireless communications device by
insuring it against loss, theft, damage, and internal
malfunction of the device. The bill provides for a
claims adjusting structure that efficiently meets the
needs of consumers of this product and maintains the
Division of Insurance's proper regulatory authority.
As wireless devices have become an integral part of
our everyday lives their functionalities have expanded
exponentially and with these developments the cost of
these devices has also risen. Portable electronics
insurance not only ensures that a consumer's
investment in such a device is protected, but also
ensures that a consumer receives quick service by
getting a pre-programmed phone or other portable
electronic device in the consumer's hands often times
the very next day after a claim has been made.
The bill creates a regulatory framework tailored to
portable electronics insurance adjusting in Alaska.
The approach set forth in this important piece of
legislation ensures a balanced regulatory structure
that would avoid the need to license every individual
who takes claims calls from Alaska consumers while
insisting on a supervisory structure of insurance
producers or adjusters to ensure proper oversight.
Because a consumer's device is critical to their
everyday life, it is critical that portable
electronics insurance claims be handled efficiently
and swiftly. Recognizing this, the portable
electronics insurance industry utilizes automated
claims adjudication systems to ensure expedient
resolution to claims to ensure a replacement phone
reaches the consumer as quickly as possible. This
legislation authorizes the use of such a system while
also ensuring that it is developed to comply with
Alaska law governing claims handling.
The bill also amends state law to further clarify how
a nonresident adjuster is licensed in Alaska by
utilizing a designated home state, a concept embraced
by the National Association of Insurance
Commissioners.
This model proposed in this legislation is consistent
with the national trend to the regulation of this
product as it creates an efficient and fair licensing
framework, and gives regulators the authority they
need to effectively oversee these activities.
Legislation similar to this has been enacted into law
in twenty-eight states including Texas, Florida,
Hawaii, Washington, Oregon, and Michigan.
In summary, this is a good bill not only for insurers
offering portable electronics insurance but also for
the consumers of Alaska. The bill creates a regulatory
structure suitable for this product which allows the
Division of Insurance regulatory oversight to ensure
that claims made by Alaska consumers are handled in
the right way.
MR. RICCI advised that a committee substitute was forthcoming
and noted the individuals who were available to answer
questions.
3:36:34 PM
PAUL FASSBENDER, Director, Public Policy and Economic
Development, Asurion, Nashville, Tennessee, stated that his
company provides insurance for portable electronics, primarily
phones. He explained that SB 214 adds to legislation passed last
year that established standards for adjusting portable
electronic insurance claims. It will remove the gray areas in
these claim adjustments and provide stability for operating in a
regulated environment.
3:38:00 PM
STEPHEN MCDANIEL, Outside Regulatory Counsel, Asurion, offered
to answer questions.
CHAIR DUNLEAVY opened public testimony.
3:38:46 PM
SENATOR ELLIS asked the subject of the new language in the
forthcoming CS that Mr. Ricci mentioned.
MR. RICCI explained that the Division of Insurance noticed the
need to make technical changes related to the home state where
adjusters are registered and whether or not the company has a
physical presence in that state. He deferred further explanation
to the Division of Insurance.
SENATOR ELLIS asked if the industry or the Division of Insurance
brought this up.
MR. RICCI replied the industry brought it up and Senator
Dunleavy's office has been working with the Division of
Insurance on the language.
MR. FASSBENDER added that the issue is a consequence of a
virtual marketplace. Insurance adjusters supervise clerical
staffs that take claims nationwide and they apply for
nonresident adjuster licenses in various states. The technical
issue relates to whether the adjuster needs to have a brick and
mortar facility or be a resident of a state in order to claim it
as a home state. When states drafted their insurance laws they
didn't necessarily take into account Asurion's business model.
CHAIR DUNLEAVY asked Mr. Hester to supplement the record
regarding the reason for the technical language change in the
anticipated committee substitute.
3:41:14 PM
MARTY HESTER, Deputy Director, Division of Insurance, Department
of Commerce, Community and Economic Development (DCCED), Juneau,
Alaska, explained that Alaska is one of the states that requires
a license for this particular type of insurance and a physical
storefront. The language in the forthcoming committee substitute
would allow a company doing virtual claims to operate from the
state that they're currently licensed out of.
3:43:05 PM
CHAIR DUNLEAVY announced he would keep public testimony open and
hold SB 214 in committee for further consideration.