SB 167-MULTIPLE VEHICLE INSURANCE POLICIES  2:29:43 PM CHAIR DUNLEAVY reconvened the meeting and announced the consideration of SB 167. "An Act relating to the maximum amount of uninsured and underinsured coverage payable under multiple motor vehicle insurance policies issued by the same insurer in the same household." ASHTON COMPTON, Staff, Senator Charlie Huggins, introduced SB 167 reading the following sponsor statement: [Original punctuation provided.] SB 167 corrects an unintended loophole in Alaska statutes that is harmful to consumers of Uninsured/Underinsured Motorist ("U/UIM") insurance. Alaska, like most states, restricts the combining or "stacking" of multiple U/UIM coverages. When a consumer insures more than one vehicle with the same insurer, the U/UIM coverages are not combined or "stacked." Instead the coverage available in an accident is the highest coverage on any one of the vehicles. That limitation makes the coverage more affordable, allows more consumer choice and enhances predictability. Our Legislature repeatedly made it clear that the limitation on stacking applies regardless of whether the vehicles are insured under one policy, or through separate policies from the same insurer. Unfortunately language adopted in 1990 as later applied created an unintended loophole that does not consistently accomplish the stated purpose. Under the language, if the consumer insures the vehicles under separate policies from the same insurer, stacking is precluded only for the "named insured" - ironically allowing all the other coverages to be stacked for all other persons. There is no logical reason for this discrepancy. It needlessly forces the consumer to pay for "stackable" coverage that is not desired. With a simple change in the statutory language SB 167 corrects this inconsistency and accomplishes the following: • Consumers will not be forced to pay for coverage they do not want or need. Insurance rates for many consumers will be positively influenced. • Consumer choice and predictability will be improved because consumers can choose a predictable level of coverage they deem appropriate. • Consumers who choose to insure their vehicles in separate policies will have the same options as, and be treated the same as, consumers who insure their vehicles under a single policy, which was the stated legislative intent in 1984 and 1990. 2:32:07 PM SHELDON WINTERS, Lobbyist, State Farm Insurance, Juneau, Alaska, stated that SB 167 is about enforcing and consistently applying the public policy prohibiting stacking that was adopted in 1984 and amended in 1990. He explained that an unintended loophole in the 1990 legislation was that it provided protection against stacking for multicar policies but only partial protection for single car policies. SB 167 corrects the discrepancy that makes consumers pay more and the Division of Insurance approved the language. 2:40:34 PM KENTON BRINE, Property Casualty Insurance Association, Olympia, Washington, voiced support for the SB 167 and offered to answer questions. 2:41:13 PM CYNTHIA LAMAR, Horace Mann Insurance, Springfield, Illinois, voiced support for SB 167 and offered to answer questions. SENATOR MICCICHE thanked Ms. Lamar for her letter and helping the committee understand the bill. SENATOR OLSON asked if there was a problem in Alaska that caused this to come to the forefront. MS. COMPTON replied both consumers and insurers were concerned. 2:42:55 PM CHAIR DUNLEAVY announced he would hold SB 167 in committee for further consideration. Public testimony was open.