HB 372-OMNIBUS INSURANCE                                                                                
                                                                                                                                
2:36:40 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration  of  HB  372.  [CSHB  372(L&C)  am  is  before  the                                                               
committee.]                                                                                                                     
                                                                                                                                
2:37:31 PM                                                                                                                    
KONRAD  JACKSON,   Staff,  Senator   Kurt  Olson,   Alaska  State                                                               
Legislature, introduced HB  372 the legislation on  behalf of the                                                               
House  Labor and  Commerce Committee,  speaking to  the following                                                               
sponsor statement:                                                                                                              
                                                                                                                                
     House Bill 372 is an insurance statute clean-up bill,                                                                      
     similar to ones introduced every few years.                                                                                
                                                                                                                                
     The bill  makes conforming  changes to  Alaska Statutes                                                                    
     which bring  us into compliance with  the ever changing                                                                    
     Federal  insurance laws.  The modernization  of several                                                                    
     provisions   to   Title   21  also   include   consumer                                                                    
     protection and insurer licensing restrictions.                                                                             
                                                                                                                                
       Your support for this important Title 21 update is                                                                       
     appreciated.                                                                                                               
                                                                                                                                
2:38:39 PM                                                                                                                    
LORI WING-HEIER, Director, Division of Insurance, Department of                                                                 
Commerce, Community and Economic Development (DCCED), Anchorage,                                                                
Alaska provided the following sectional analysis for HB 372:                                                                    
                                                                                                                                
     Sec. 1 AS 21.06.110 Director's annual report                                                                             
                                                                                                                                
     that  the director  include in  the  annual report  the                                                                    
     total  number  of  public  comments  received  and  the                                                                    
     director's efforts, to the extent  allowable by law, to                                                                    
     improve  or maintain  public access  to information  on                                                                    
     the  individual  health  care  insurance  rate  filings                                                                    
     before they  become effective. This  has been  added to                                                                    
     provide the  consumer with as  notice of  the impending                                                                    
     rate  filing  and the  impact  it  will have  on  their                                                                    
     healthcare insurance plan.                                                                                                 
                                                                                                                                
     Sec. 2 AS 21.06.120(a) Examination of insurers                                                                           
                                                                                                                                
     references  to   the  handbooks  used   throughout  the                                                                    
     country for financial  and market conduct examinations.                                                                    
     Both  publications   are  published  by   the  National                                                                    
     Association of  Insurance Commissioners.  Formerly, the                                                                    
     term   "Examiners'    Handbook"   was    a   sufficient                                                                    
     description  as  both  the  financial  examination  and                                                                    
     market conduct  examination handbooks used the  term in                                                                    
     their   title.  Now,   however,  the   "Market  Conduct                                                                    
     Examiners Handbook" is no longer  published and is part                                                                    
     of the "Market Regulation Handbook".                                                                                       
                                                                                                                                
     Sec. 3 AS 21.06.140(f) Conduct of examination                                                                            
                                                                                                                                
     references  to   the  handbooks  used   throughout  the                                                                    
     country for financial  and market conduct examinations.                                                                    
     Both  publications   are  published  by   the  National                                                                    
     Association of  Insurance Commissioners.  Formerly, the                                                                    
     term   "Examiners'    Handbook"   was    a   sufficient                                                                    
     description  as  both  the  financial  examination  and                                                                    
     market conduct  examination handbooks used the  term in                                                                    
     their   title.  Now,   however,  the   "Market  Conduct                                                                    
     Examiners Handbook" is no longer  published and is part                                                                    
     of the "Market Regulation Handbook".                                                                                       
                                                                                                                                
     Sec. 4 AS 21.06.160(a) Examination expense                                                                               
                                                                                                                                
     general     agents,     third-party     administrators,                                                                    
     reinsurance   intermediary   managers,  motor   vehicle                                                                    
     service contract  providers, and surplus  lines brokers                                                                    
     from the requirements of  paying for division personnel                                                                    
     and  overhead costs  relating to  an examination;  such                                                                    
     entities  would  still  be  required  to  pay  for  the                                                                    
     division's  "out-of-pocket"  expenses including  travel                                                                    
     expenses and  for compensation of a  contract examiner,                                                                    
     however,  the entities  could apply  for a  waiver from                                                                    
     the director based on financial hardship.                                                                                  
                                                                                                                                
     Sec.  5 AS  21.07.005  Regulations  relating to  health                                                                  
     care insurance policies