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