Legislature(2021 - 2022)BARNES 124
04/12/2021 03:15 PM House LABOR & COMMERCE
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Audio | Topic |
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Start | |
Board of Certified Real Estate Appraisers | |
SB87 | |
HB145 | |
HB90 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | SB 87 | TELECONFERENCED | |
*+ | HB 145 | TELECONFERENCED | |
+= | HB 90 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
+ | TELECONFERENCED |
SB 87-REINSURANCE; CREDITS 3:36:07 PM CO-CHAIR SPOHNHOLZ announced that the next order of business would be SENATE BILL NO. 87, "An Act relating to credit for reinsurance; and providing for an effective date." 3:36:22 PM LORI WING-HEIER, Director, Division of Insurance, Department of Commerce, Community, and Economic Development, introduced SB 87 on behalf of the Senate Rules Standing Committee, sponsor, by request of the governor. She explained that one of the most important duties carried out by the Division of Insurance is monitoring the solvency of insurance companies to ensure adequate funds to pay claims. She said that in practice, insurance companies only keep a portion of the risk; if a person has a house worth $500,000, the insurance company may insure only half of the worth, purchasing reinsurance for the other half. Likewise, she said, the company may transfer only the earthquake portion of the policy because the company doesn't want to carry that risk. She recalled the 2008 financial crisis, noting that the Division of Insurance was diligent in monitoring insurance companies for solvency, but did not monitor for reinsurance. She stated that the United States, along with the United Kingdom and the European Union, developed what is called the "covered agreement," a very detailed agreement providing that insurance regulators in each country will maintain the same financial standards for insurance companies. The covered agreement with the European Union was signed by President Barack Obama, and the covered agreement with the United Kingdom was signed by President Donald Trump. As new international insurers are launched, however, a need for modification arises, which is the reason for SB 87. MS. WING-HEIER directed the committee's attention to Section 1, subsection (a), paragraph (6), of the proposed legislation, detailed on pages 10 through 13, which would amend the conditions for qualified reinsurers and the associated baseline for allowing reinsurers to assume the liabilities of a domestic insurer. Current domestic insurers, she said, are Alaska National Insurance Company and Umialik Insurance Company. She explained that "creditor reinsurance" is called as such because when an insurance company buys reinsurance from a qualified reinsurer, the company can get a credit for what was purchased in reinsurance. Ms. Wing-Heier then summarized the relevant sectional analysis, which read as follows [original punctuation provided]: AS 21.12.020(a)(6) is amended by adding conditions that a qualified reinsurer must meet to assume liabilities of a domestic insurer. The assuming insurer shall: (A) Have its head office or be domiciled in a reciprocal jurisdiction; (B) Have and maintain minimum capital and surplus, or its equivalent, in an amount set out in regulation; (C) Have and maintain a minimum solvency or capital ratio in an amount set out in regulation; (D) Agree to and provide adequate assurances to the director (i)prompt written notice if the insurer falls below the minimum requirements or if any regulatory action is taken against it for serious non-compliance; (ii) consent in writing to the jurisdiction of the courts of this state and to the appointment of the director as the agent for service of process; (iii) consent in writing to pay all final judgments obtained by the ceding insurer; (iv) agree that each reinsurance agreement must provide security in an amount equal to 100 percent of the assuming insurer's liabilities; and (v) confirm that it is not participating in any solvent scheme of arrangement that involves this state's ceding insurers; (E) Provide certain documentation to the director as specified in regulation; (F) Maintain a practice of prompt payment of claims; (G) Confirm to the director on an annual basis that the assuming insurer complies with requirement (B) and (C); (H) Agree that nothing in this paragraph precludes an assuming insurer from providing the director with information on a voluntary basis. MS. WING-HEIER stated that the proposed legislation would also provide a definition of a "reciprocal jurisdiction" and that the reciprocal jurisdiction would include the countries in the United Kingdom and the countries of the European Union. 3:40:58 PM CO-CHAIR FIELDS commented that reinsurance seems to be more broadly available to, and disproportionally benefit, people in regions of low-frequency, high-consequence events like earthquakes. MS. WING-HEIER replied that such events are exactly what reinsurance is for, noting that such events don't commonly occur but are "catastrophic" when they do. 3:41:40 PM CO-CHAIR SPOHNHOLZ announced that SB 87 was held over.
Document Name | Date/Time | Subjects |
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HB 90 Opposition Received as of 4.10.21.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 90 |
HB 145 Supporting Document - AK Pharmacists Association Fact Sheet.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
HB 145 Sponsor Statement, Ver. A.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
HB 145 Supporting Document - AK Pharmacists Association Talking Points.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
HB 145 Ver. A.PDF |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
HB 145 Fiscal Note - DCCED, 4.09.21.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
HB 145 Sectional Analysis, Ver. A.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
HB 90 v. A 2.18.21.PDF |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
HB 90 Sponsor Statement 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
HB 90 Sectional Analysis 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
HB 90 Supporting Document - State by State P2P Collecting Map 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
HB 90 Supporting Document - Anchorage Ordinance PVRN 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
HB 90 Supporting Document - Revenue Stream Chart 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
HB 90 Supporting Document - State by State DOR Collection Map 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
HB 90 Fiscal Note - DOR, 4.2.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
HB 90 Fiscal Note - DOA, 4.3.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
HB 90 Sponsor Presentation 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
SB 87 Fiscal Note 1.pdf |
HL&C 4/12/2021 3:15:00 PM SL&C 3/8/2021 1:30:00 PM |
SB 87 |
SB 87 v. A.PDF |
HL&C 4/12/2021 3:15:00 PM SL&C 3/8/2021 1:30:00 PM |
SB 87 |
SB 87 Transmittal Letter.pdf |
HL&C 4/12/2021 3:15:00 PM |
SB 87 |
SB 87 v. A Sectional Analysis.pdf |
HL&C 4/12/2021 3:15:00 PM SL&C 3/8/2021 1:30:00 PM |
SB 87 |
SB 87 NAIC Credit for Reinsurance Model Law Briefing.pdf |
HL&C 4/12/2021 3:15:00 PM SL&C 3/8/2021 1:30:00 PM |
SB 87 |
SB 87 SLAC Answers to Members' Questions.pdf |
HL&C 4/12/2021 3:15:00 PM SL&C 3/19/2021 1:30:00 PM |
SB 87 |
Justin Ruffridge Board Application.pdf |
HL&C 4/12/2021 3:15:00 PM |
HL&C Confirmations 2021 |
Rachel Berngartt Resume.pdf |
HL&C 4/12/2021 3:15:00 PM |
HL&C Confirmations 2021 |
Justin Ruffridge Resume.pdf |
HL&C 4/12/2021 3:15:00 PM |
HL&C Confirmations 2021 |
Mae Sprague Hayes Board Application.pdf |
HL&C 4/12/2021 3:15:00 PM |
HL&C Confirmations 2021 |
HB 145 Support Received as of 4.10.21.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
HB 90 Supporting Document, DOR Response 4.12.21.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 90 |
HB 145 Support Received as of 4.12.21.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |