Legislature(2005 - 2006)CAPITOL 17
02/22/2006 04:00 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB260 | |
| HB394 | |
| HB447 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | SB 260 | ||
| *+ | HB 394 | TELECONFERENCED | |
| *+ | HB 447 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 394-INSURANCE POLICIES IN FOREIGN LANGUAGES 4:20:05 PM CHAIR ANDERSON announced that the next order of business would be 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." CHAIR ANDERSON moved to adopt CSHB 394, Version 24-LS1506\F, Bailey, 2/22/06, as the working document. There being no objection, Version F was before the committee. MIKE PAWLOWSKI, Staff to Representative Kevin Meyer, Alaska State Legislature, explained that over 80,000 Alaskans speak a language other than English at home. However, there is no provision in state law that facilitates an [insurance] company to issue an insurance policy or associated materials in a language other than English. He explained that Version F clarifies that when an insurance policy is filed or materials are issued, the English version is the official version. This information must be disclosed in any materials given to the public. He went on to say that HB 394 is a "cleanup" bill that facilitates better service to Alaskans who buy insurance. REPRESENTATIVE GUTTENBERG asked for the differences between the original version and Version F. MR. PAWLOWSKI explained the changes in Version F are related in the document titled "Committee Substitute Comparison Sheet for House Bill 394." REPRESENTATIVE GUTTENBERG asked if the violations remain the same regardless of language. MR. PAWLOWSKI answered that this is correct, adding that the sponsor did not want to link [language] specifically to the general violations because the sponsor did not want to create "lack of clarity" between this legislation and the false advertising provisions in Title 21. MR. PAWLOWSKI, in response to questions from Representative Rokeberg, explained that an insurance company would be unwilling to issue a claim in a foreign language if the official version was not specified. He added that in case of a dispute, an official version is needed. He related that the Division of Insurance is in support of the bill. 4:25:07 PM REPRESENTATIVE LEDOUX noted that CSHB 394 does not mandate the insurance companies to write a policy in a language other than English, but rather allows the companies to market to any non- English speaking group. MR. PAWLOWSKI agreed that this is correct, adding that the lack of a provision in current law creates an obstacle to this. REPRESENTATIVE LEDOUX asked if there are currently any insurance policies in languages other than English. MR. PAWLOWSKI deferred to the Division of Insurance. 4:26:09 PM JEFFERY TROUTT, Deputy Director, Division of Insurance, Department of Commerce, Community, & Economic Development (DCCED), stated that although the division did not initiate the legislation, it does support the bill. If English is not the native language, the individual buying the insurance policy may not understand it, and this [legislation] would support consumer education and protection. He added that having the English version as the "anchor" is a good idea, as it is "almost impossible" to accurately translate from one language to another. CHAIR ANDERSON repeated an earlier question regarding the amount of paperwork that would be required. MR. TROUTT opined that this would not create a "nightmare", explaining that currently Spanish is the only non-English policy [in print]. He added that this is more likely to be an issue in the future. He noted that the legislation has no fiscal impact. 4:28:49 PM SHELDON WINTERS, Lobbyist, State Farm Insurance (State Farm), stated that there is an emerging group of consumers who speak foreign languages, and the insurance companies want to have the ability to provide them with information on insurance products. He pointed out two areas of HB 394 that explain why the insurance companies would like to make these changes. Referring to Section 1(a), he explained that this refers to insurance policy forms, specifying that if an insurer wants to give a foreign language translation, the English version will be the main version. Mr. Winters opined that State Farm would not publish many foreign language policies but would like to publish associated materials such as brochures in languages other than English. He explained that insurance companies are currently inhibited by Supreme Court precedence which states that in determining an insurance contract dispute, the court will look at the insurance policy in addition to other relevant evidence. He added that "other relevant evidence" includes brochures and informational sheets. CHAIR ANDERSON opined that [offering insurance policies and associated materials in languages other than English] is an incentive for the majority of insurance companies to obtain more business and would be positive for the industry as a whole. MR. WINTERS agreed. REPRESENTATIVE LEDOUX opined that this is a "burgeoning" market. REPRESENTATIVE ROKEBERG asked if all of the different language policies would need to be filed with the Division of Insurance. MR. WINTERS replied yes, adding that he does not feel there will be a large number of these in the immediate future. CHAIR ANDERSON noted that if necessary, the legislature could put regulations in place. MR. WINTERS agreed and explained that there have been instances when the insurers have filed [non-English] forms with no direction as to which version is the controlling version and the Division of Insurance has assumed that the foreign language version controls. REPRESENTATIVE LEDOUX asked if they anticipate Spanish to be the language used most frequently. MR. WINTERS replied that he does not anticipate that State Farm will have foreign language policies, but they will have brochures in Spanish in addition to other languages. REPRESENTATIVE LEDOUX asked if State Farm would market with brochures in different languages, but only have policies in English. MR. WINTERS said that this is one example. He gave an additional example of a contract dispute during which the court decides that the insurance company is required to honor the brochures given out. He reiterated that HB 394 would make the English language brochure the main version. REPRESENTATIVE ROKEBERG asked if associated materials need to be filed with the Division of Insurance. MR. WINTERS replied no. CHAIR ANDERSON noted that it is the same for brochures as it would be for an insurance policy. 4:35:07 PM REPRESENTATIVE LEDOUX moved to report CSHB 394, Version 24- LS1506\F, Bailey, 2/22/06, out of committee with individual recommendations and the accompanying fiscal notes. REPRESENTATIVE ROKEBERG objected for discussion purposes and expressed concern regarding the diversity of language in America. He stated that this is "manacle" to the "American way of life." CHAIR ANDERSON expressed understanding of this view, and added that America is a "melting pot" [of different cultures]. He gave an example of a person involved in a car accident who does not speak English and is therefore unable to get insurance due to lack of understanding. He opined that this might make a person change his or her mind regarding the printing of policies in different languages. REPRESENTATIVE ROKEBERG opined that not many people read their insurance policies. REPRESENTATIVE LEDOUX noted her surprise regarding Representative Rokeberg's stance on the matter and added that not allowing insurance companies to market to a growing group is "economically suicidal." REPRESENTATIVE ROKEBERG withdrew his objection. CHAIR ANDERSON pointed out that this would allow both the policy and associated materials to be printed in a language other than English. REPRESENTATIVE LYNN stated his agreement with the English version being the official version. CHAIR ANDERSON noted that the objection was withdrawn, therefore CSHB 394(L&C) was reported from the House Labor and Commerce Standing Committee. 4:39:37 PM
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