HB 184-INSURANCE CODE AMENDMENTS SENATOR TAYLOR announced he had suggested technical amendments. In a hearing on SB 138, which is the same bill, the department explained the changes to the insurance code. He asked for an explanation of the differences between the two bills. MR. BOB LOHR, Director of the Alaska Division of Insurance, spoke in support of the bill. Privacy provisions received the most discussion on SB 138 and the House version of the bill incorporated language on privacy that was as restrictive as the National Conference of Insurance Legislators model language. This is a higher standard for protection of privacy than the Gramm-Leach- Bliley Act Title 5 privacy provisions provided by SB 138 as it moved from Senate Labor & Commerce. There is little opposition to the House version of SB 138. Other changes include authorizing the division to update its insurance investment regulations, which have not been updated for many years. There are many sound investment products on the market that are categorized as suspect because they weren't in existence when the laws were adopted. The House version would allow those standards to be updated by regulation and outdated investment regulatory language would be repealed resulting in the National Association of Insurance Commissioners model law on investment regulation. Another change deals with trust accounts. Currently the division requires licensed trust account producers (agents and brokers) to ensure that money going to an insurance company for a policy is protected from embezzlement. There is reciprocity with the Federal National Association of Registered Agents and Brokers and if Alaska maintains its present requirements for its trust accounts, it would probably be declared non-reciprocal and not helped to qualify to avoid federal takeover of licensing. The House version of SB 138 would give the division the authority to adopt regulations to have trust accounts but would not be required to do so. As a result, if the reciprocity provision arises, there is a mechanism in the bill to deal with it. Committee members were also provided with a list of technical changes to HB 184. CHAIRMAN TAYLOR called for a motion to amend. SENATOR COWDERY moved amendment one to insert the technical amendments submitted by the division. CHAIRMAN TAYLOR objected for the purpose of an explanation. MS. KATIE CAMPBELL, Life & Health Actuary for the Division of Insurance, gave an explanation of the non-substantive changes. Copies of these technical changes are found in amendment one of the bill file. CHAIRMAN TAYLOR asked for additional objections and there were none. Amendment 1 passed. There was no other testimony. SENATOR COWDERY moved SCS CSHB 184(JUD) from committee with individual recommendations. There was no objection and Chairman Taylor moved the bill from committee. [Before adjournment Chairman Taylor announced HB 184 would be held in committee.] HB 184-INSURANCE CODE AMENDMENTS    CHAIRMAN TAYLOR announced he would hold HB 184 in committee [see hearing of HB 184 above.] and adjourned the meeting at 7:22 p.m.