CSHB 394(L&C)AM-INSURANCE POLICIES IN FOREIGN LANGUAGES  CHAIR CON BUNDE announced CSHB 394(L&C)AM to be up for consideration. MICHAEL PAWLOWSKI, staff to Representative Kevin Meyer, sponsor of HB 394, said that according to the last census, more than 80,000 Alaskans speak a language other than English at home. Even though they are still required to purchase insurance, there is an obstacle in state law to a company providing them with associated materials or policies that are published in a foreign language. The problem is that since the law is silent on which version of policy, be it the non-English version or the English version, is the official version. And since insurance contracts and policies are interpreted against the insurance company with all of the associated materials brought in, and since no translation is ever perfect and there can be plenty of disagreement in court as to the nuances of a word, companies are reluctant to publish policies, pamphlets and materials in a language other than English. This has led to a growing portion of our population not being adequately served. As the chairman said, insurance polices are hard enough to understand in our own language. And to ask someone to wade through the minutia of a contract without supporting materials for informational purposes is detrimental to them trying to conduct regular business in the state of Alaska. So, the sponsor introduced HB 394 to remove that obstacle from statute, put adequate barriers in to prevent misrepresentation of information and to clarify that these are to be only for informational purposes. He believes that this will lead to a freer market in the state to conduct business and serve Alaskans that truly need the service. CHAIR BUNDE asked if it requires any one to try to provide written information in any language. MR. PAWLOWSKI replied no, it requires nothing of anyone. It only removes an obstacle to allow people and companies to pursue a business activity that they might want to. 2:09:31 PM SENATOR SEEKINS asked about language on page 2, line 6, that says an "insurer may not misrepresent information in an insurance policy ....translated into a language other than English" and asked if he could only misrepresent in English. MR. PAWLOWSKI replied that was a good question, but that language came from, AS 21.36.030 on misrepresentation and false advertising. The actual activity in English is covered under a separate statute. 2:10:28 PM JEFFERY TROUTT, Deputy Director, Division of Insurance, said he was here primarily to answer questions, but wanted to expound on some of the issues raised. He recalled that the Division had received two health policies in Spanish. An English translation was sent along with it. Under that circumstance he said he would consider the Spanish version as the operative version. However, business phrases might mean one thing in Mexico and another in Chile or El Salvador. He said, "It's good to have an anchor so everybody knows what version you are working on." MR. TROUTT said he viewed this as a consumer protection bill that would encourage insurance companies to provide materials in a form that people could understand and his Division supported the legislation. He strongly supported Senator Seekins' point about lying stating: To me, I believe a lie is a lie whether it's in English, Spanish, Tagalong or Mandarin. And I would apply Section 21.36.120 and .140 against anybody, no matter what language they were lying in. But even though I believe those two statutes apply to misrepresentation in a foreign language, as somebody who works in enforcement, I don't mind you giving me a little extra rope to hang the bad guys with. 2:13:11 PM SHELDON WINTERS, State Farm Insurance, said that State Farm is the largest insurer of homes and autos in the United States and in Alaska. He supported CSHB 394(L&C) AM saying it would help better serve State Farm's customers by providing more meaningful information to them. This bill is needed, first, because it deals with the actual insurance policy forms that get filed with the Division. Currently, if a non-English version is filed, there is no law as to which version controls and he understands that the Division has unofficially assumed that the non-English version controlled. He suggested that two requirements be met - one, that both versions are filed and, two, that both versions provide notice to the consumer that this is for informational purposes and the English version controls. Secondly, Mr. Winters said that insurance companies provide brochures describing coverage and other information to consumers and that is impossible if the consumer doesn't speak English. The problem is with court interpretation of such materials and the inherent subtle differences between an English version and a non-English version. Alaska's Supreme Court has ruled if there is a dispute about what a policy provides, the court has to not only look at the actual policy language, but at any other extra evidence that the consumer may have looked at or relied upon. That would include the advertising or the brochures the industry provides to them. Other jurisdictions that allow policies and advertising material to be produced in a non-English version can produce a lot more information and he used California as an example. Twelve other states have laws that allow what is trying to be done here. However, most other states don't require an English and non- English version to be produced. Some don't even require the notice that the English version controls, but he believed that was good for the consumer. CHAIR BUNDE remarked that this seems to be a relatively simple and non-controversial bill. 2:18:15 PM SENATOR SEEKINS moved to pass CSHB 394(L&C) am from committee with individual recommendations and attached zero fiscal note. Senators Davis, Ellis, Ben Stevens, Seekins and Chair Bunde voted yea; and CSHB 394(L&C) am moved from committee.