Legislature(1997 - 1998)

04/03/1998 03:24 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
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.                                                   
                                                                               

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