Legislature(2001 - 2002)
04/08/2002 01:15 PM House JUD
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE JUDICIARY STANDING COMMITTEE
April 8, 2002
1:15 p.m.
COMMITTEE CALENDAR
DIVISION OF INSURANCE UPDATE: AVAILABILITY & COST OF INSURANCE
IN ALASKA
TAPES
02-44, SIDE A
CALL TO ORDER
REPRESENTATIVE NORMAN ROKEBERG, Chair, called the House
Judiciary Standing Committee meeting to order at 1:15 p.m. [For
minutes regarding HB 317, HB 295, and HB 316, see the 1:45 p.m.
minutes for this date.]
PRESENT
Committee members present were Representatives Rokeberg, James,
Coghill, Meyer, Berkowitz, and Kookesh.
SUMMARY OF INFORMATION
BOB LOHR, Director, Division of Insurance, Department of
Community & Economic Development, discussed the report prepared
by the division regarding the impact of tort reform on insurance
rates in Alaska. He pointed out that it was next to impossible
to accurately determine the impact of tort reform specifically.
REPRESENTATIVE JAMES asked about homeowner's insurance and the
effects of tort reform.
MR. LOHR responded that the information in Alaska is often not
credible due to the limited population and loss experience.
SARAH McNAIR-GROVE, Actuary P/C, Central Office, Division of
Insurance, Department of Community & Economic Development,
talked further about the difficulty of determining the impact of
tort reform on insurance costs. She also explained the charts
that were provided in the report.
REPRESENTATIVE BERKOWITZ asked about the number of claims paid
as a result of verdict versus settlement.
MR. LOHR responded that most claims are settled out of court.
Further he mentioned that defense attorneys seem to be bolder
since tort reform in terms of their willingness to go to trial.
CHAIR ROKEBERG asked a question regarding the establishment of
rates and ISO recommended rate changes.
MS. McNAIR-GROVE briefly mentioned insurance rate trends as
discussed in the report.
REPRESENTATIVE BERKOWITZ asked if there was a correlation
between the number of insurance companies operating in a market
and the costs in that market.
MR. LOHR said that market concentration may be a factor in
pricing. If one company controls a large percentage of the
market, that company has the capacity to make prices instead of
take prices.
REPRESENTATIVE JAMES commented that we have no interest in
increasing large settlements. She also commented on her concern
that assisted living centers have great difficulty securing
insurance.
MS. McNAIR-GROVE added that her concern had been felt all over
the lower 48 as well as in Alaska, and that it was in fact a
significant problem.
ANNOUNCEMENTS
No announcements were made.
COMMITTEE ACTION
The committee took no action.
ADJOURNMENT
CHAIR ROKEBERG called an at-ease at 1:43 p.m. for the purpose of
hearing legislation. [For minutes regarding HB 317, HB 295, and
HB 316, see the 1:45 p.m. minutes for this date.]
NOTE: The meeting was recorded and handwritten log notes were
taken. A copy of the tape(s) and log notes may be obtained by
contacting the House Records Office at State Capitol, Room 3,
Juneau, Alaska 99801 (mailing address), (907) 465-2214, and
after adjournment of the second session of the Twenty-Second
Alaska State Legislature this information may be obtained by
contacting the Legislative Reference Library at (907) 465-3808.
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