Legislature(2005 - 2006)HOUSE FINANCE 519
03/02/2006 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB395 | |
| HB394 | |
| HB321 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 321 | TELECONFERENCED | |
| + | HB 394 | TELECONFERENCED | |
| = | HB 395 | ||
1:48:29 PM HOUSE BILL NO. 394 An Act relating to allowing insurance policies to be filed, approved, and delivered in languages other than English if an official English language version is also provided. MIKE PAWLOWSKI, STAFF, REPRESENTATIVE KEVIN MEYER, explained that HB 394 would remove an obstacle that prevents companies from serving the 80,000 Alaskans that currently speak a language other than English. The problem is that in current statute, there is no provision, designating which version of an insurance policy or associated materials would be the official version. At this time, all materials are published in English. Designating an official version in English would allow companies to service their customers better. 1:49:58 PM Representative Weyhrauch questioned if the Department of Commerce, Community & Economic Development supports the change. 1:50:24 PM Mr. Pawlowski responded that the Division of Insurance representative was not able to come to the meeting. He noted the letter in member's indicating support. Representative Weyhrauch asked why the bill was needed. 1:50:55 PM SHELDON WINTERS, REPRESENTATIVE FOR STATE FARM INSURANCE suggested that HB 394 is a win-win bill. It benefits the consumer and the industry, as it provides a better product. The Division of Insurance supports it. Mr. Winters pointed out in today's society, insurance permeates basically everything. The intent of the legislation is to provide better information about the insurance product to foreign speaking customers so that they can make wiser choices about their insurance decisions. In Alaska Court case law, when there is a dispute about the insurance contract, the court will look to the language of the insurance policy and any other evidence. The bill does not control that, but does address the concern if insurance companies provide foreign language advertising or policy. The English version controls as long as the other requirements are met. Mr. Winters offered to answer questions of the Committee. 1:53:47 PM Co-Chair Meyer inquired if the burden would be on the insurance companies. Mr. Winters replied it would. There is nothing that prohibits the insurance companies from issuing foreign language advertising. When filing with the Division of Insurance, the actual policy form would be in English. 1:54:22 PM Representative Weyhrauch asked why the bill was needed and what currently prohibits it under State law. 1:54:48 PM Mr. Winters responded that there is nothing that prohibits the practice except for the Supreme Court case law, if a foreign language version available, the Supreme Court could base their dispute on the fact that the foreign language version would control. Given that, insurance companies are reluctant to issue any information in a foreign language. 1:55:27 PM Representative Weyhrauch asked if there is a difference between a foreign language and an English version of a policy, then which version would control. Mr. Winters noted that the legislation would clarify that the English version would rule. Representative Weyhrauch asked if that was true, even if the customer was not able to read English. Mr. Winters clarified that without the provision, there would be no foreign language provision at all. The idea is that information would be provided in a foreign language for their information, but a disclaimer would exist that the English version ultimately controls. The point is that without the bill, the foreign language-speaking customer will have no translation. 1:56:51 PM Representative Weyhrauch asked if the Court presently uses all evidence, has there been overriding of that ruling. Mr. Winters understood that was the direction of the Statute. He added, it would only apply to documents in English and not a foreign language. There would be a disclosure in both languages. 1:57:41 PM Representative Joule observed testimony indicating that "foreign" really meant non-English. He advised that the Alaska Native language is not foreign and recommended using "non-English" speaking. Mr. Winters apologized, noting they had attempted to change it to non-English. 1:58:39 PM Co-Chair Meyer took responsibility for the use of the word foreign. 1:59:01 PM Representative Kelly asked if the change had been made elsewhere in Statute. Mr. Winters did not know. Co-Chair Meyer interjected that this was the first time the issue had come up as far as he knew. Representative Kelly inquired if he thought it would be the first of many. 1:59:54 PM Co-Chair Meyer did not know; he admitted that he did not know if other industries would need the extra documentation. Mr. Winters did not think the legislation would "open the flood gates". The insurance arena is unique. Court law interprets an insurance contract very strictly. In an insurance dispute, there is a case precedence noting that the review would not be limited to the contract, which is the concern. 2:01:02 PM Representative Kelly worried that changing the language would affect many other statutory concerns. 2:02:01 PM Co-Chair Meyer did not agree with that concern, noting that English is the dominant language and the one accepted by the State. Mr. Winters added that the legislation addresses the opportunity to provide policy brochures in both English and non-English. Representative Kelly provided an example of his involvement on a bank board. He reiterated his concern about all the other potential agencies that could be affected. 2:03:29 PM Representative Foster discussed the influx of people from Southeast Asia in Nome and how the legislation could benefit them in business. He added that for the most part, there are elders that cannot read English. He thought that the bill would fill a missing void. 2:05:35 PM Representative Weyhrauch asserted that insurance companies can already provide the non-English information. He stressed that the concern remains, the legal immunity and deterrent of the insured. 2:06:14 PM Mr. Pawlowski pointed out that the legislation would not provide a policy call for knowingly misrepresenting terms in the foreign language, as that would be a violation of the chapter. The dilemma is that no translation can be perfect and being a translation, it would attempt to be as close as possible. 2:06:57 PM Representative Weyhrauch stated that insurance companies are well advised to avoid punitive damages. 2:07:53 PM Representative Kelly asked if consideration had been made to adding language that could cover all statutes. Mr. Pawlowski responded they had not gone that far. The legislation clarifies that English is the official version for insurance. The larger issues were not addressed. As far as the State is concerned, English is the official version. 2:08:54 PM Co-Chair Meyer agreed, noting that English is the dominant language. Representative Kelly predicted other businesses would want the same consideration down the road. 2:09:32 PM Representative Foster MOVED to REPORT HB 394 out of Committee with individual recommendations and with the accompanying zero note. There being NO OBJECTION, it was so ordered. CS HB 394 (L&C) was reported out of Committee with a "no" recommendation and with zero note #1 by the Department of Commerce, Community & Economic Development.
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