01/24/2001 03:30 PM House L&C

                    ALASKA STATE LEGISLATURE                                                                                  
           HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                        January 24, 2001                                                                                        
                            3:30 p.m.                                                                                           
                                                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW: DIVISION OF INSURANCE                                                                                                 
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
01-4, SIDES A & B                                                                                                               

01-5, SIDE A                                                                                                                    
                                                                                                                              
CALL TO ORDER                                                                                                                 
                                                                                                                                
REPRESENTATIVE LISA  MURKOWSKI, Chair, called the  House Labor and                                                              
Commerce Standing Committee meeting to order at 3:30 p.m.                                                                       
                                                                                                                              
PRESENT                                                                                                                       
                                                                                                                                
Committee   members   present  were   Representatives   Murkowski,                                                              
Halcro, Rokeberg, Meyer, Kott, Crawford, and Hayes.                                                                             
                                                                                                                              
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                                
BOB  LOHR,   Director,  Division   of  Insurance,  Department   of                                                              
Community and Economic  Development (DCED), presented  an overview                                                              
of the  division.  He  reported that the  mission of  the division                                                              
is to  protect and serve  the state by  regulating all  aspects of                                                              
insurance, and  to protect and  educate the consumer  by enhancing                                                              
the state's business environment.                                                                                               
                                                                                                                                
MR.  LOHR  reported  that all  persons  transacting  insurance  in                                                              
Alaska are  required to  be licensed  by the  state.  Over  10,000                                                              
people are currently  licensed and the division  issued over 5,500                                                              
licenses in  fiscal year  2000.  He  reported that they  responded                                                              
to   over   500   consumer   complaints   and   1,200   inquiries.                                                              
Additionally,  they  have  recovered over  $400,000  in  insurance                                                              
payments to Alaskans.                                                                                                           
                                                                                                                                
MR. LOHR  discussed legislative  priorities  for the 2001  session                                                              
and noted that  the Gramm-Leach-Bliley Act (GLBA),  a federal law,                                                              
breaks  down barriers  among  banking, insurance,  and  securities                                                              
industries.   The   Act   establishes    a   framework   for   the                                                              
responsibilities  of  federal  and state  regulators.    Enactment                                                              
promotes  reciprocity in  all aspects  of licensing  requirements,                                                              
procedures, and applications.                                                                                                   
                                                                                                                                
MR.  LOHR  reported   that  the  committee  can   expect  proposed                                                              
legislation that  confirms the  director of insurance's  authority                                                              
to   adopt  privacy   standards  consistent   with  the   National                                                              
Association of Insurance Commissioners (NAIC) model regulation.                                                                 
                                                                                                                              
LINDA  BRUNETTE,  Licensing  Supervisor,  Division  of  Insurance,                                                              
DCED, responded to general questions from the committee.                                                                        
                                                                                                                                
KATIE CAMPBELL, Life/Health Actuary,  Division of Insurance, DCED,                                                              
spoke to upcoming legislation and  answered general questions from                                                              
the committee.                                                                                                                  
                                                                                                                                
SARAH   MCNAIR-GROVE,  Property/Casualty   Actuary,  Division   of                                                              
Insurance, DCED, answered general questions from the committee.                                                                 
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
There were no announcements.                                                                                                    
                                                                                                                              
COMMITTEE ACTION                                                                                                              
                                                                                                                                
CHAIR   MURKOWSKI   appointed  a   subcommittee   to   investigate                                                              
insurance  pooling  for  Alaska  air  carriers.    Representatives                                                              
Halcro,  Kott,   and  Hayes  were   named  to  the   subcommittee.                                                              
Representative  Halcro,  who  was appointed  as  the  subcommittee                                                              
chair, stated  that he would report  back to the committee  in two                                                              
weeks.                                                                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                              
CHAIR  MURKOWSKI adjourned  the  meeting of  the  House Labor  and                                                              
Commerce Standing Committee at 5:07 p.m.                                                                                        
                                                                                                                                
                                                                                                                                
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.