SB 106-HOMEOWNER/RENTER INSURANCE RENEWAL  1:32:04 PM CHAIR REINBOLD announced that the first order of business would be SENATE BILL NO. 106, "An Act relating to renewal of insurance coverage for homeowners and renters; and providing for an effective date." {Before the committee was the proposed committee substitute (CS) for SB 106( ), 31-LS0476\M, Version M.] 1:32:31 PM SENATOR COSTELLO explained that her amendment would have added in commercial businesses. She said that she has held discussions but has decided not to incorporate her amendment into the bill. She thanked the sponsor for working with her on this matter. 1:33:35 PM SENATOR COSTELLO withdrew Amendment 1, work order M.2 previously adopted at the 5/9/19 meeting, work order 31-LS0476\M.2, Marx, 5/8/19. AMENDMENT 1 OFFERED IN THE SENATE BY SENATOR COSTELLO TO: CSSB 106( ), Draft Version "M" Page 1, line 1, following "Act": Insert "relating to cancellation and renewal of  commercial property insurance coverage;" Page 1, following line 3: Insert a new bill section to read:  "* Section 1. AS 21.36.210 is amended by adding a new subsection to read: (g) An insurer may not exercise its right to cancel a policy of commercial property insurance solely based on notice, receipt, or payment of a claim under the policy unless the insurer has paid a claim under the policy within the three-year period immediately preceding the notice, receipt, or payment." Page 1, line 4: Delete "Section 1" Insert "Sec. 2" Renumber the following bill sections accordingly. Page 2, line 12, following "homeowner's": Insert "or commercial property" Page 3, following line 13: Insert a new bill section to read:  "* Sec. 5. AS 21.36.310 is amended by adding a new paragraph to read: (6) "commercial property insurance" means property insurance as described in AS 21.12.060 that is "business or commercial insurance" as defined in this section." Renumber the following bill sections accordingly. Page 3, lines 16 - 18: Delete all material and insert: "APPLICABILITY. AS 21.36.210(g), enacted by sec. 1 of this Act, AS 21.36.240, as amended by secs. 2 and 3 of this Act, AS 21.36.310(4), as amended by sec. 4 of this Act, and AS 21.36.310(6), enacted by sec. 5 of this Act, apply to an insurance policy or contract entered into or renewed on or after the effective date of secs. 1 - 5 of this Act." Page 3, line 25: Delete "Section 5" Insert "Section 7" Page 3, line 26: Delete "sec. 6" Insert "sec. 8" CHAIR REINBOLD asked to place on the record that the committee received letters of opposition from the National Association of Mutual Insurance Companies, and the American Property Casualty Insurance Association to Amendment 1. She understood their concerns. However, this matter needs to be addressed. Many businesses in her community want to close down due to theft and crime. She urged everyone to work together with local businesses and insurance companies to reduce the rampant theft in Alaska's communities. CHAIR REINBOLD removed her objection. Amendment 1, previously adopted, was withdrawn. 1:35:20 PM CHAIR REINBOLD moved to adopt Amendment 2, work order 31- LS0476\M.4, Marx, 5/9/19. AMENDMENT 2 OFFERED IN THE SENATE BY SENATOR REINBOLD TO: CSSB 106( ), Draft Version "M" Page 2, lines 11 - 15: Delete all material and insert: "(b) In addition to the requirements in (a) of this section, an insurer may not fail to renew a homeowner's insurance policy based solely on the earliest claim made by the insured within the three-year period immediately preceding the policy's annual anniversary if the claim arises from a criminal act committed by a third party. In this subsection, "homeowner's insurance" includes coverage described in AS 21.36.460(i)(7)(B) and (C)." SENATOR COSTELLO objected for discussion purposes. CHAIR REINBOLD read Amendment 2. 1:36:19 PM SENATOR TOM BEGICH, Alaska State Legislature, Juneau, explained that the two changes in Amendment 2 were worked out through discussions with the insurance industry. First, Amendment 2 would ensure that failure to renew a homeowner's insurance policy is not based solely on the earliest claim made. He characterized it as giving the insurance agency little more flexibility related to issues outside of the scope of a criminal act. He said that Amendment 2 narrowed it down to criminal acts committed by a third party. He clarified that a criminal act could be committed by a party within a home and a claim could be made. However, that is a different issue entirely. In this instance it relates to situations in which a person is the victim of a crime that the person was unaware of. He said he wholly supports this amendment. He encouraged members to adopt the amendment. 1:37:42 PM SENATOR BIRCH raised a procedural question. He asked whether action the committee took at the last hearing on Amendment 1 was rescinded. 1:38:34 PM SENATOR COSTELLO pointed out Amendment 2 was before the committee. CHAIR REINBOLD asked members to consider the motion before them, which is Amendment 2. SENATOR COSTELLO withdrew her objection. 1:38:47 PM SENATOR BIRCH clarified that this limits it to criminal acts committed by a third party, which is a fairly narrow limit. SENATOR BEGICH answered that is correct. CHAIR REINBOLD heard no further objections and Amendment 2 was adopted. CHAIR REINBOLD solicited a motion to rescind the committee's action on Amendment 1. 1:39:35 PM SENATOR COSTELLO made a motion to rescind the committee's action to adopt Amendment 1, work order 31-LS0476\M.2, Marx, 5/8/19, which was previously adopted by the committee on 5/19/19. There being no objection, the Senate Labor and Commerce Standing Committee's action to adopt Amendment 1 was rescinded. CHAIR REINBOLD indicated SB 106, as amended, was before the committee. 1:39:55 PM SENATOR COSTELLO moved to report SB 106, work order 31-LS0476\M, as amended, from committee with individual recommendations and attached fiscal note. CHAIR REINBOLD found no objection and the committee substitute for SB 106 (L&C) was reported from the Senate Labor and Commerce Standing Committee Standing Committee. 1:40:35 PM At-ease.