Legislature(1997 - 1998)
04/03/1998 03:24 PM L&C
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
CSSB 158(L&C) - INSURANCE CHANGES FOR DR. LIC REVOC. Number 0775 CHAIRMAN ROKEBERG announced the committee's next order of business was CSSB 158(L&C), "An Act relating to motor vehicle liability insurance covering a person who has had the person's driver's license revoked for possession or consumption of alcohol while under 21 years of age." Number 0785 RALPH BENNETT, Legislative Administrative Assistant to Senator Robin Taylor, came forward. He indicated there was a proposed committee substitute, Version R, which embodied the changes suggested in discussion with the department and the industry at the April 1, 1998, hearing. Mr. Bennet noted the changes had been in Section 2 of the bill. He indicated the language "in a situation where the person was not driving and was" had been inserted on page 2, line 10. The addition of that language essentially gave the insurance industry some further assurance that they would not be dealing with the other things mentioned in [AS] 28.15.183 or 28.15.185. He said, "We will restrict ourselves only to those non- driving offenses." On page 2, line 13, under subsection (b), he indicated the language "based upon loss experience" had been substituted for "for a loss experience", commenting it was a minor and technical change. Section 2 of Version R read: *Sec. 2. AS 21.89 is amended by adding a new section to read: Sec. 21.89.027. Motor vehicle insurance following driver's license revocation. (a) Notwithstanding AS 21.36.210, an insurer offering insurance in this state may not (1) refuse to issue or renew motor vehicle liability insurance coverage; (2) cancel an existing policy of motor vehicle liability insurance; (3) deny a covered claim; or (4) increase the premium on a motor vehicle liability insurance policy if the refusal, cancellation, denial, or increase results only from the fact that the person's driver's license was revoked under AS 28.15.183 or 28.15.185 for possession or consumption of alcohol in a situation where the person was not driving and was in violation of AS 04.16.050 or a municipal ordinance with substantially similar elements. (b) The provisions of (a) of this section may not prevent an insurer from underwriting or rating based upon loss experience in the same manner as it would for a person who has not had the person's driver's license revoked under AS 28.15.183 or 28.15.185. Number 0879 REPRESENTATIVE KUBINA made a motion to adopt Version R, the proposed committee substitute for CSSB 158(L&C), labeled 0- LS0839\R, Ford, dated 4/3/98. There being no objections, Version R was adopted. REPRESENTATIVE KUBINA said he took it that it still got to the point. MR. BENNETT answered in the affirmative. CHAIRMAN ROKEBERG asked if Representative Brice needed any further explanation [Representative Brice had not been present for the April 1, 1998, hearing]. REPRESENTATIVE BRICE indicated he would speak with Mr. Bennett at a later time. REPRESENTATIVE KUBINA commented the department was "okay with it now." Number 0920 MR. BENNET stated Senator Taylor was happy with the current version. He noted every change they had made had been discussed exhaustively with the Division of Motor Vehicles (DMV), the Division of Insurance, Mr. George [John George, Lobbyist for National Association of Independent Insurers (NAII)] and the industry. Mr. Bennett commented they would be discussing further changes before the bill came before the House Judiciary Standing Committee. He stated, "Specifically, the effective date may be too stringent for ... any business as complex as the ... insurance industry to comply with the requirements of this legislation and reorient ... the type of response to their customers that we would expect them to have, so we may want to adjust the effective date in Judiciary Committee, if not other things that have occurred to you gentlemen." Number 0967 CHAIRMAN ROKEBERG said he assumed the bill would go into effect 90 days after it was signed into law by the Governor. Number 0975 MR. BENNET indicated the chairman was correct. Mr. Bennet stated January 1 had been suggested as a possible date and he indicated this change might be requested in the House Judiciary Standing Committee to allow the industry further time. Number 1004 CHAIRMAN ROKEBERG confirmed none of the witnesses signed up wished to testify at that time. He noted representatives from the Division of Insurance and the insurance industry were present, and there seemed to be a general consensus on the legislation. Chairman Rokeberg said, therefore, he would entertain a motion. Number 1024 REPRESENTATIVE JOHN COWDERY made a motion to move the proposed committee substitute for CSSB 158(L&C) with individual recommendations and the attached zero fiscal note. There being no objections, HCS CSSB 158(L&C) was moved out of the House Labor and Commerce Standing Committee.