Juneau -- The Alaska House of Representatives Monday passed House Bill 398, sponsored by Representative John Harris (R-Anchorage). HB 398 updates Alaska law to bring it into line with model statutes proposed by the National Association of Insurance Commissioners to better protect Alaska policyholders and claimants.

The Alaska Life and Health Insurance Guaranty Association was established to protect life and health insurance policyholders if the insurance company that issued their policies becomes insolvent or goes out of business. Membership in this association is mandatory for life and health insurers in Alaska. The guaranty association tries to place active policies with other companies so that coverage will continue uninterrupted.

"HB 398 makes sure that guaranty association benefits are implemented more promptly and efficiently, and at a lower cost to policyholders," Harris said. "The bill also clarifies ambiguous language which could promote lawsuits and provides certain added benefits for policyholders."

HB 398 passed the House 37-1.

Attachments:

• Sponsor Statement

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