An Act relating to the annual report of the director of the division of insurance and to notice of cancellation of personal insurance.

Updated: April 15, 1999

CSHB 158 (L&C) would accomplish two things: 1) permit the Division of Insurance to gather more in-depth statistical information regarding health insurance policies and 2) would permit a person 70 or older to request that notices be mailed not only to the insured but to a designated party.

One section of the bill deals with notices of cancellation on personal insurance policies. An 83-year old constituent thought he was insured and had paid his premium. He was in an accident, went to file a claim and was told that he didn't have coverage. He is out $80,000. This constituent was carrying for an invalid spouse, dealing with finding a new live-in caregiver, and does not remember receiving any premium notices from his insurance company.

This legislation would leave the current system in place for Alaskans under age 70. If an Alaskan is 70 or over, the legislation offers a chance to have notices mailed not only to the insured but to a person designated by the insured. The insurance company would notify the policyholders of this option and upon written request would then mail all notices to two people: the insured and the designated party. This extra step will provide older Alaskans with a trusted extra pair of eyes looking at the notice. The legislation covers "personal insurance" which is property casualty (auto and homeowners) but does not include annuity contracts, life insurance, and health insurance or title insurance.

Another section of the legislation addresses a question that many in the Legislature have been struggling with for years: How many Alaskans are covered by individual and group health insurance policies? This bill permits the Division to gather such information in connection with the preparation of the Director's annual report. As the Legislature deals with many health insurance related issues, it is important to know how many Alaskans will be impacted by our decisions. We are particularly concerned about the impact on non-ERISA plans which are covered by legislative mandates and ERISA plans which are exempt from legislative mandates. There are many guestimates floating around but nothing concrete. This provision should not put an undue burden on the health insurance industry as each company should already know how many individual or group health policies they write in Alaska and how many people are covered by those policies.

Your support of this legislation would be appreciated.