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Session:
State Capitol, Room 110 Juneau, AK 99801-1182 Phone: (907) 465-4859 Fax: (907) 465-3799 Send E-Mail |
Life and Health Insurance Guaranty Association
Posted: February 22, 2000
Contact: Representative John Harris, at (907) 465-4859.
The purpose of HB 398 is to make changes to the Alaska Life and Guaranty Association Act (AS 21.79), which provides a mechanism to protect policyholders and claimants in the event of the insolvency of a life and health insurer licensed to sell policies in Alaska.
The Alaska Life and Health Guaranty Association membership in mandatory for every life and health insurer licensed to sell policies in the state. The association, to fund certain outstanding obligations of life and health insurers that have been put into receivership, assesses its members. The Association works closely with the Director of Insurance, who is the receiver for insolvent insurers.
Alaska’s current law is based on an earlier version of a national Association of Insurance Commissioners model Act. HB 398 updates Alaska statutes to bring them into close conformity with the most recent National Association of Insurance Commissioners model Act. The NAIC model Act has been updated to reflect lessons learned at a nationwide level from application of the model Act to actual insolvencies experienced since the last revision. HB 398 will allow the Alaska Guaranty Association to better meet its intended purpose of protecting Alaska policyholders and claimants. Updating the Act to comply with the latest model Act provides the added benefit of uniformity among the states in responding to insurer insolvencies.
The Alaska Life and Health Guaranty Association supports passage of HB 398.