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Insurers Must Follow Procedures to Cancel Policies
For Immediate Release: May 7, 1999 Juneau -- The Alaska House of Representatives Friday unanimously passed House Bill 158, which would change the way Alaskans over 70 years of age are notified about cancellation of automobile or other personal insurance policies. Currently, an insurance company must make a mailing at least 30 days before cancellation, except for nonpayment of premium, which requires that a notice be made 20 days before cancellation. "Many older Alaskans need more than two notices mailed to them concerning possible cancellation of a personal insurance policy," said Representative Norman Rokeberg (R-Anchorage), sponsor of HB 158. "Under HB 158, the current system would remain in place for those under 70 years of age. But senior citizens over 70 years of age would be able to request an additional mailing to a third party, such as a family member or other caregiver, to make sure a premium payment has been made and they are not without coverage." Additionally, the legislation would permit the Division of Insurance to gather information about the number of individual and group health policies sold in Alaska. "Legislators have been trying for years to figure out how many Alaskans are covered by various types of health insurance" Rokeberg said. "This number is important for many reasons - not the least of which is when we are considering legislation concerning the effects of health insurance mandates, for example, coverage for contraceptives or Viagra." HB 158 now moves to the Senate.
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Majority Actuality line, 1-800-478-6540 |
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