05/06/2005 09:00 AM Senate FINANCE

                                                                                                                                
     CS FOR HOUSE BILL NO. 147(FIN) am                                                                                          
     "An Act  relating to notice of  suspension or revocation  of an                                                            
     insurer's  certificate  of  authority  and  the effect  of  the                                                            
     suspension  or  revocation  upon the  authority  of agents  and                                                            
     managing  general agents  of the insurer;  relating to  certain                                                            
     deposits  under AS 21; relating  to the yielding of  assets and                                                            
     securities   held   on   deposit;   relating   to  third-party                                                             
     administrators  under  AS  21; relating  to  insurance  agents,                                                            
     managing  general agents,  reinsurance  intermediary  managers,                                                            
     and insurance  producers; requiring  the director of  insurance                                                            
     to notify  a licensee of a license  renewal before the  renewal                                                            
     date;  defining the term  'appointment'  as used in part  of AS                                                            
     21;  relating  to the  eligibility  to  provide coverage  by  a                                                            
     nonadmitted  insurer  and alien  insurer;  relating to  surplus                                                            
     lines  insurance and  brokers; relating  to misrepresentations                                                             
     and false advertising  concerning insurance; relating to health                                                            
     discount  plans; providing for limitations on  owner controlled                                                            
     and contractor  controlled insurance programs  and limiting the                                                            
     coverage of those  programs; prohibiting excessive, inadequate,                                                            
     or unfairly  discriminatory rate charges for  health insurance;                                                            
     defining  the term 'plan administrator'  as used in  part of AS                                                            
     21; defining the term  'transact' as used in AS 21; authorizing                                                            
     the  director of  insurance to  designate a  person to  receive                                                            
     annual reports  from companies; reducing the  period for filing                                                            
     a  quarterly   financial  statement;   and  providing   for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This was the first hearing for this bill in the Senate Finance                                                                  
Committee.                                                                                                                      
                                                                                                                                
AT EASE 4:41:46 PM / 4:41:57 PM                                                                                             
                                                                                                                                
Senator Stedman moved to adopt committee substitute Version 24-                                                                 
GH1083\Y as the working document.                                                                                               
                                                                                                                                
There being no objection, Co-Chair Green announced that Version "Y"                                                             
would be the working document.                                                                                                  
                                                                                                                                
LINDA  HALL,   Director,  Division   of  Insurance,  Department   of                                                            
Commerce,  Community  and  Economic   Development  stated  that  the                                                            
Version "Y"  committee substitute  would implement two changes.  The                                                            
effect would be to reinstate  language that had been included in the                                                            
original version of SB  108. The language being added by Version "Y"                                                            
is the entirety  of Section 1, page  two lines eight through  15. In                                                            
addition, language in Sections  31 and 32 beginning on page 17, line                                                            
25 through  page  19 line  30 was reincorporated  into  the bill  to                                                            
"address  concerns  that had  been voiced  at other  hearings".  The                                                            
purpose  would  be   to  provide  "some  regulatory  standards   for                                                            
reporting  for the year-end  health trust."  The requirements  would                                                            
include an  audited financial statement  and an actuarial  financial                                                            
report. Quarterly financial reports would no longer be required.                                                                
                                                                                                                                
Co-Chair  Green reminded  the  Committee  that they  had  previously                                                            
discussed  SB 108-INSURANCE,  and that the  language being  added to                                                            
this bill would align this bill with that bill.                                                                                 
                                                                                                                                
Co-Chair Green  asked whether HB 147 would contain  any "other major                                                            
changes" to the provisions included in SB 108.                                                                                  
                                                                                                                                
Ms. Hall replied in the negative.                                                                                               
                                                                                                                                
4:44:02 PM                                                                                                                    
                                                                                                                                
Co-Chair Green  asked whether the  language incorporated  in Version                                                            
"Y" would satisfy the needs of the Division.                                                                                    
                                                                                                                                
4:44:18 PM                                                                                                                    
                                                                                                                                
Ms. Hall responded  that this legislation  would allow the  Division                                                            
to provide "more streamlined  regulations" and to allow the Division                                                            
to  have  the  necessary  "tools  to  appropriately   oversee  those                                                            
entities" it regulates.                                                                                                         
                                                                                                                                
AT EASE 4:44:36 PM / 4:45:10 PM                                                                                             
                                                                                                                                
Co-Chair Green  noted that a new Department  of Commerce,  Community                                                            
and Economic  Development  fiscal note  dated May  6, 2005 has  been                                                            
distributed.  She asked for  an explanation  of the reason  that the                                                            
new fiscal  note reflected  $38,500  rather than  the previous  zero                                                            
fiscal amount.                                                                                                                  
                                                                                                                                
Ms. Hall  informed the Committee  that the  new fiscal note  mirrors                                                            
the  fiscal  note  that accompanied   SB 108.  It  would  provide  a                                                            
staffing position  to address consumer complaints  that the Division                                                            
would  receive as  a result of  the additional  oversight  authority                                                            
provided to the Division by this bill.                                                                                          
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There  being no  objection, SCS  CS HB  147(FIN)  was REPORTED  from                                                            
Committee  with a new  $38,500 fiscal  note from  the Department  of                                                            
Commerce, Community and Economic Development dated May 6, 2005.                                                                 
                                                                                                                                
4:46:24 PM