HB 302 — An Act relating to travel insurance; relating to the business of insurance; relating to exceptions to prohibited rebates; relating to the powers of the director of the division of insurance; relating to prohibited practices in the advertisement of insurance; relating to unemployment benefits; and providing for an effective date.

Sec.

21.36.110.

Exceptions to discrimination and rebates.

Nothing in AS 21.36.090, 21.36.100, and AS 21.54.100 may be construed as including within the definition of discrimination or rebates any of the following practices:

(1) in the case of a contract of life insurance or life annuity, paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from nonparticipating insurance, if the bonuses or abatement of premiums is fair and equitable to policyholders and for the best interests of the insurer;

(2) in the case of a life insurance policy issued on industrial debit, preauthorized check, bank draft, or similar plans, making allowance to policyholders who have made premium payments directly to an office of the insurer or by preauthorized debit, check, bank draft, or similar plan, in an amount that fairly represents the saving in collection expense;

(3) readjustment of the rate of premium for a group insurance policy basedonthelossorexpenseexperiencethereunder,attheendofthefirstorasubsequent policy year of insurance thereunder, which may be made retroactive only for that policy year;

(4) issuance of life or health insurance policies or annuity contracts at rates less than the usual rates of premiums for the policies or contracts, or modification of premium or rate based on amount of insurance;

but the issuance or modification may Enrolled HB 302 -6- not result in reduction in premium or rate in excess of savings in administration and issuance expenses reasonably attributable to the policies or contracts;

(5) a reward under a wellness program established under a health care plan that favors an individual if the wellness program meets the following requirements:

(A) the wellness program is reasonably designed to promote health or prevent disease;

(B) an individual has an opportunity to qualify for the reward at least once a year;

(C) the reward is available for all similarly situated individuals;

(D) the wellness program has alternative standards for individuals who are unable to obtain the reward because of a health factor;

(E) alternative standards are available for an individual who is unable to participate in a reward program because of a health condition;

(F) the insurer provides information explaining the standard for achieving the reward and discloses the alternative standards;

and (G) the total rewards for all wellness programs under the health insurance policy do not exceed 20 percent of the cost of coverage;

(6) the offer or provision by an insurer or insurance producer, including by or through an employee, affiliate, or third-party representative, of a value-added product or service at no cost or reduced cost when that product or service is not specified in the policy of insurance and the product or service (A) is offered in accordance with (b) of this section;

(B) relates to the insurance coverage;

and (C) is primarily designed to (i) provide loss mitigation or loss control;

(ii) reduce claim costs or claim settlement costs;

(iii) provide education about liability risks or risk of loss to persons or property;

(iv) monitor or assess risk, identify sources of risk, or develop strategies for eliminating or reducing risk;

(v) enhance health;

-7- Enrolled HB 302 (vi) enhance financial wellness by providing education or financial planning services;

(vii) provide post-loss services;

(viii) incentivize behavioral changes to improve the health or reduce the risk of death or disability of a policyholder, potential policyholder, certificate holder, potential certificate holder, insured, potential insured, or applicant;

or (ix) assist in the administration of the employee or retiree benefit insurance coverage;

(7) the provision of an offer, gift, item, or service provided in accordance with (d) of this section.

* Sec.

6.

AS 21.36.110 is amended by adding new subsections to read:

(b) Except as provided in (c) of this section, an insurer or insurance producer offering a value-added product or service in accordance with (a)(6) of this section shall ensure that (1) the cost to the insurer or producer of offering the product or service to a customer is reasonable relative to that customer's premium or insurance coverage for the policy class, the aggregate cost of a value-added product or service offered under this subsection does not exceed the amount established in regulation by the division, and a value-added product or service is not offered solely to an individual negotiating or procuring a group or association policy on behalf of others;

(2) if the insurer or producer is providing the product or service offered, the customer is provided with information for whom to contact to assist the customer with questions regarding the product or service;

and (3) the product or service is made available based on documented, objective criteria and offered in a manner that is not unfairly discriminatory;

documented criteria described in this paragraph must be maintained by the insurer or producer and provided to the director upon request.

(c) If an insurer or insurance producer does not have sufficient evidence but has a good faith belief that a value-added product or service meets the criteria in (a)(6)(C) of this section, the insurer or producer may provide the product or service in a manner Enrolled HB 302 -8- that is not unfairly discriminatory as part of a pilot or testing program for a period of not more than three years.

An insurer or producer offering a product or service to consumers in the state as part of a pilot or testing program under this subsection shall notify the director before launching the program and may proceed with the program if the director does not object within 21 days after receiving the notice.

(d) An insurer or insurance producer may (1) offer or give noncash gifts, items, or services to, including provision of meals to or charitable donations made on behalf of, a customer in connection with the marketing, sale, purchase, or retention of a contract of insurance if (A) the offer is made in a manner that is not unfairly discriminatory;

(B) the customer is not required to purchase, continue to purchase, or renew a policy in exchange for the noncash gift, item, or service;

and (C) the cost of the noncash gift, item, or service does not exceed an amount determined by the director to be reasonable for each term of a policy year;

(2) offer or give noncash gifts, items, or services to, including provision of meals to or charitable donations made on behalf of, a commercial or institutional customer in connection with the marketing, sale, purchase, or retention of a contract of insurance if (A) the offer is made in a manner that is not unfairly discriminatory;

(B) the customer is not required to purchase, continue to purchase, or renew a policy in exchange for the noncash gift, item, or service;

(C) the cost of the noncash gift, item, or service is reasonable relative to the premium or proposed premium;

and (D) the cost of the noncash gift, item, or service is not included in any amounts charged to another person or entity;

(3) conduct a raffle or drawing to the extent permitted by state law if (A) there is no financial cost to entrants to participate;

-9- Enrolled HB 302 (B) the raffle or drawing does not obligate participants to purchase insurance;

(C) the prizes are not valued in excess of a reasonable amount determined by the director;

(D) the raffle or drawing is open to the public;

(E) theraffleordrawingisofferedinamannerthat isnotunfairly discriminatory;

and (F) a participant is not required to purchase, continue to purchase,orrenewapolicyinexchangeforparticipationintheraffleordrawing.

(e) The director may adopt regulations to implement this section.

* Sec.

7.

AS 21.36 is amended by adding a new section to read:

Sec.

21.36.115.

Prohibited advertising practices.

An insurer, insurance producer, or representative of an insurer or producer may not (1) offer or provide insurance as an incentive for purchasing another policy;

or (2) use in an advertisement the words "free," "no cost," or similar language that suggests that the insurance coverage is free or provided at no cost to the consumer.

* Sec.

8.

AS 21.36.120(a) is amended to read:

(a) A property, casualty, or surety insurer or its employee or representative [,] or an insurance producer [AN AGENT, OR SOLICITOR] may not pay, allow, give, or offer to pay, allow, or give, directly or indirectly, as an inducement to insurance or after insurance has been effected, a rebate, discount, abatement, credit, or reduction of the premium named in the policy of insurance, or a special favor or advantage in the dividends or other benefits to accrue thereon, or any valuable consideration or inducement,notspecifiedinthepolicy,excepttotheextentprovidedforinanapplicable filing with the director as provided by law.

* Sec.

9.

Sec.Sec.21.42.800.Travelinsuranceclassificationandfiling.(a)Travelinsurance may be provided under an individual policy or under a group or blanket policy.

21.42.800.Enrolled HB 302 -10- (b) Eligible groups may purchase group and blanket policies.

Travel insurance classification and filing.

(a) Travel insurance may be provided under an individual policy or under a group or blanket policy.

(b) Eligible groups may purchase group and blanket policies.

(3) an employer covering any group of employees, volunteers, contractors, a board of directors, dependents, or guests;

(7) an incorporated or unincorporated association having a common interest, constitution, and bylaws and organized and maintained in good faith for purposes other than obtaining insurance for members or participants of the association HB 302 -6- HB0302a New Text Underlined [DELETED TEXT BRACKETED] 34-LS1436\A covering its members;

-11- Enrolled HB 302 (10) an entertainment production company covering a group of participants, volunteers, audience members, contestants, or workers;

(11) a volunteer fire department, ambulance, rescue, police department, court,or court or any first aid, civil defense, or other volunteer group;

(12) a preschool, daycareday care institution for children or adults, or senior citizen club;

(13) a common carrier, operator, owner or lessor of a means of transportation, or automobile or truck rental or leasing company covering a group of individualsindividualswhomaybecomerenters,lessees,orpassengersdefinedbytheirtravelstatus whoontherentedorleased may become renters, lessees, or passengers defined by their travel status on the rented or leased vehicle;

thethecommon common carrier, operator,operator,ownerorlessorofameans owner or lessor of a means of transportation, or automobile or truck rental or leasing company is the policyholder under a policy to which this subsection applies;

and (14) any other group the director determines is engaged in a common enterprise or has an economic, educational, or social affinity or relationship,relationship and for which issuance of the policy would not be contrary to the public interest.

(d) EligibilityEligibilityandunderwritingstandardsfortravelinsurancemaybedeveloped and underwriting standards for travel insurance may be developed and provided based on travel protection plans that are designed for individual or identified marketing or distribution channels if those standards also meet the underwriting standards for wetinland marine and transportation lines of insurance in the state.

(a) The director may issue a travel insurance limited producer license to an individual or HB0302a -7- HB 302 New Text Underlined [DELETED TEXT BRACKETED] 34-LS1436\A business entity that has filed with the director an application in a form and manner prescribed by the director.

Enrolled HB 302 -12- (c) A travel retailer's employee or authorized representative who is not a travel insurance limited producer may not (1) evaluate or interpret the material terms, benefits, and conditions of the offered travel insurance coverage;

HB 302 -8- HB0302a New Text Underlined [DELETED TEXT BRACKETED] 34-LS1436\A (B) the name, address, and contact information of each officer or person who directs or controls the travel retailer's operations;

(3) require each employee and authorized representative of a travel retailer that offers travel insurance on behalf of and under the direction of the producer whose duties include offering and disseminating travel insurance to receive a training -13- Enrolled HB 302 or instruction program that, at a minimum, contains adequate instruction on the type of insurance offered, ethical sales practices, and the disclosures that must be provided to its prospective customers;

(2) explain that the purchase of travel insurance is not required in order HB0302a -9- HB 302 New Text Underlined [DELETED TEXT BRACKETED] 34-LS1436\A to purchase any other product or service from the travel retailer;

(i) A travel retailer whose insurance-related activities, and those of the travel retailer's employees and authorized representatives, are limited to offering and disseminating travel insurance under this section may receive related compensation Enrolled HB 302 -14- upon registration under (e)(1) of this section.

and (2) the fulfillment materials HB 302 -10- HB0302a New Text Underlined [DELETED TEXT BRACKETED] 34-LS1436\A (A) describe and delineate the travel insurance, travel assistance services, and cancellation fee waivers in the travel protection plan;

(b) Travel assistance services provided under a travel protection plan may include security advisories, destination information, vaccination and immunization information services, travel reservation services, entertainment, activity and event planning, translation assistance, emergency messaging, international legal and medical referrals, medical case monitoring, coordination of transportation arrangements, -15- Enrolled HB 302 emergency cash transfer assistance, medical prescription replacement assistance, passport and travel document replacement assistance, lost luggage assistance, concierge services, and any other service that is furnished in connection with planned travel.

(b) Offering or selling a travel insurance policy that could never result in paymentpaymentofa of a claim forfora apersoninsured personunderthe insured under the policy is an unfairunfairtradepracticeunder trade practice under AS 21.36.

(c)Notwithstanding All(a) documents provided to consumers before the purchase of travelthis insurance,section, includingnothing sales,in advertising,this andsubsection marketinglimits materials, must be consistent with the traveldirector's insuranceauthority policyunder itself,AS including21.42.130. forms, endorsements, policies, rate filings, and certificates of insurance.

(d)(c) IfAll adocuments travelprovided insurance policy or certificate contains preexisting condition exclusions, the person offering the policy shall provide to theconsumers consumer, before the timepurchase of purchasetravel andinsurance,including insales, theadvertising, fulfillment materials for the coverage, information and anmarketing HB0302amaterials, -11-must HBbeconsistent 302with Newthe Texttravel Underlinedinsurance [DELETEDpolicy TEXTitself, BRACKETED]including 34-LS1436\Aforms, opportunityendorsements, topolicies, learnrate morefilings, aboutand thecertificates preexistingof conditioninsurance. exclusions.

(d) If a travel insurance policy or certificate contains preexisting condition exclusions, the person offering the policy shall provide to the consumer, before the time of purchase and in the fulfillment materials for the coverage, information and an opportunity to learn more about the preexisting condition exclusions.

the fulfillment materials Enrolled HB 302 -16- are considered delivered under this paragraph when sent to the policyholder or certificate holder;

(g) If travel insurance is marketed directly to a consumer either by an insurer's Internet website or by an aggregator website, it is not an unfair trade practice or other violation of law if an accurate summary or short description of the coverage is provided on the website and the consumer has access to the full provisions of the policy through electronicelectronicmeans. means.

In this subsection, "aggregator website" means aawebsitethatprovides website that provides access to information relating to insurance products from more than one insurer, including product and insurer information, for use in comparison shopping.

(h) A person may not offer, solicit, or negotiate travel insurance or travel HB 302 -12- HB0302a New Text Underlined [DELETED TEXT BRACKETED] 34-LS1436\A protection plans on an individual or group basis by using a negative or opt-out option that requires a consumer to take an affirmative action to deselect coverage, including unchecking a box on an electronic form, when the consumer purchases a trip.

or -17- Enrolled HB 302 (2) agreeing to obtain and provide before departure proof of coverage that meets the requirements of the destination jurisdiction.

In AS 21.42.800 - 21.42.825, (1) "blanket travel insurance" means a policy of travel insurance that is issued to any eligible group and that provides coverage for specific classes of persons defined in the policy with coverage provided to all members of the eligible group HB0302a -13- HB 302 New Text Underlined [DELETED TEXT BRACKETED] 34-LS1436\A without a separate charge to individual members of the eligible group;

(4) "fulfillment materials" means documentation that is sent to the purchaser of a travel protection plan and that confirms the purchase and provides Enrolled HB 302 -18- coverage and assistance details of the travel protection plan;

(D) a person adjusting or settling claims in the normal course of that person's practice or employment as an attorney who does not collect HB 302 -14- HB0302a New Text Underlined [DELETED TEXT BRACKETED] 34-LS1436\A charges or premiums in connection with insurance coverage;

(7) "travel assistance services" means noninsurance services for which the consumer is not indemnified based on a fortuitous event and for which provision of thetheservicedoesnotresult serviceintransferorshiftingofriskthatwouldconstitutethebusiness does not result in transfer or shifting of risk that would constitute the business of insurance;

(8) "travel insurance" (A) means insurance coverage for personal risks incident to planned travel, including -19- Enrolled HB 302 (i) trip or event interruption or cancellation;

HB0302a -15- HB 302 New Text Underlined [DELETED TEXT BRACKETED] 34-LS1436\A (B) licensed insurance producer;

5.10.

AS 23.20.350(d) is amended to read:

(d) An individual who is eligible under (a) of this section is entitled to receive the weekly benefit amount set out in column (B) of the table in this subsection that is opposite the amount set out in column (A) of the individual's base period wages Enrolled HB 302 -20- determined under (c) of this section:

(A) (B) Base Period Wages Weekly Benefit Amount At least But less than 0 2,500 $ 0 2,500 2,750 56 2,750 3,000 58 3,000 3,250 60 3,250 3,500 62 3,500 3,750 64 3,750 4,000 66 4,000 4,250 68 4,250 4,500 70 4,500 4,750 72 4,750 5,000 74 5,000 5,250 76 5,250 5,500 78 5,500 5,750 80 5,750 6,000 82 6,000 6,250 84 6,250 6,500 86 6,500 6,750 88 6,750 7,000 90 7,000 7,250 92 7,250 7,500 94 7,500 7,750 96 7,750 8,000 98 8,000 8,250 100 8,250 8,500 102 8,500 8,750 104 -21- Enrolled HB 302 8,750 9,000 106 9,000 9,250 108 9,250 9,500 110 9,500 9,750 112 9,750 10,000 114 10,000 10,250 116 10,250 10,500 118 10,500 10,750 120 10,750 11,000 122 11,000 11,250 124 11,250 11,500 126 11,500 11,750 128 11,750 12,000 130 12,000 12,250 132 12,250 12,500 134 12,500 12,750 136 12,750 13,000 138 13,000 13,250 140 13,250 13,500 142 13,500 13,750 144 13,750 14,000 146 14,000 14,250 148 14,250 14,500 150 14,500 14,750 152 14,750 15,000 154 15,000 15,250 156 15,250 15,500 158 15,500 15,750 160 15,750 16,000 162 16,000 16,250 164 16,250 16,500 166 Enrolled HB 302 -22- 16,500 16,750 168 16,750 17,000 170 17,000 17,250 172 17,250 17,500 174 17,500 17,750 176 17,750 18,000 178 18,000 18,250 180 18,250 18,500 182 18,500 18,750 184 18,750 19,000 186 19,000 19,250 188 19,250 19,500 190 19,500 19,750 192 19,750 20,000 194 20,000 20,250 196 20,250 20,500 198 20,500 20,750 200 20,750 21,000 202 21,000 21,250 204 21,250 21,500 207 [206] 21,500 21,750 209 [208] 21,750 22,000 212 [210] 22,000 22,250 214 [212] 22,250 22,500 216 [214] 22,500 22,750 219 [216] 22,750 23,000 221 [218] 23,000 23,250 224 [220] 23,250 23,500 226 [222] 23,500 23,750 228 [224] 23,750 24,000 231 [226] 24,000 24,250 233 [228] -23- Enrolled HB 302 24,250 24,500 236 [230] 24,500 24,750 238 [232] 24,750 25,000 240 [234] 25,000 25,250 243 [236] 25,250 25,500 245 [238] 25,500 25,750 248 [240] 25,750 26,000 250 [242] 26,000 26,250 252 [244] 26,250 26,500 255 [246] 26,500 26,750 257 [248] 26,750 27,000 260 [250] 27,000 27,250 262 [252] 27,250 27,500 264 [254] 27,500 27,750 267 [256] 27,750 28,000 269 [258] 28,000 28,250 272 [260] 28,250 28,500 274 [262] 28,500 28,750 276 [264] 28,750 29,000 279 [266] 29,000 29,250 281 [268] 29,250 29,500 284 [270] 29,500 29,750 286 [272] 29,750 30,000 288 [274] 30,000 30,250 291 [276] 30,250 30,500 293 [278] 30,500 30,750 296 [280] 30,750 31,000 298 [282] 31,000 31,250 300 [284] 31,250 31,500 303 [286] 31,500 31,750 305 [288] 31,750 32,000 308 [290] Enrolled HB 302 -24- 32,000 32,250 310 [292] 32,250 32,500 313 [294] 32,500 32,750 315 [296] 32,750 33,000 317 [298] 33,000 33,250 320 [300] 33,250 33,500 322 [302] 33,500 33,750 325 [304] 33,750 34,000 327 [306] 34,000 34,250 329 [308] 34,250 34,500 332 [310] 34,500 34,750 334 [312] 34,750 35,000 337 [314] 35,000 35,250 339 [316] 35,250 35,500 341 [318] 35,500 35,750 344 [320] 35,750 36,000 346 [322] 36,000 36,250 349 [324] 36,250 36,500 351 [326] 36,500 36,750 353 [328] 36,750 37,000 356 [330] 37,000 37,250 358 [332] 37,250 37,500 361 [334] 37,500 37,750 363 [336] 37,750 38,000 365 [338] 38,000 38,250 368 [340] 38,250 38,500 370 [342] 38,500 38,750 373 [344] 38,750 39,000 375 [346] 39,000 39,250 377 [348] 39,250 39,500 380 [350] 39,500 39,750 382 [352] -25- Enrolled HB 302 39,750 40,000 385 [354] 40,000 40,250 387 [356] 40,250 40,500 389 [358] 40,500 40,750 392 [360] 40,750 41,000 394 [362] 41,000 41,250 397 [364] 41,250 41,500 399 [366] 41,500 41,750 401 [368] 41,750 42,000 404 [370] 42,000 42,250 406 42,250 42,500 409 42,500 42,750 411 42,750 43,000 413 43,000 43,250 416 43,250 43,500 418 43,500 43,750 421 43,750 44,000 423 44,000 44,250 425 44,250 44,500 428 44,500 44,750 430 44,750 45,000 433 45,000 45,250 435 45,250 45,500 438 45,500 45,750 440 45,750 46,000 442 46,000 46,250 445 46,250 46,500 447 46,500 46,750 450 46,750 47,000 452 47,000 47,250 454 47,250 47,500 457 Enrolled HB 302 -26- 47,500 47,750 459 47,750 48,000 462 48,000 48,250 464 48,250 48,500 466 48,500 48,750 469 48,750 49,000 470 49,000 470 [370].

* Sec.

11.

AS 23.20.350(f) is amended to read:

(f) An individual who establishes a benefit year is eligible for an allowance for dependents in addition to the individual's weekly benefit amount.

The department may require an individual claiming or receiving an allowance for dependents to produce income tax returns, birth certificates, notices of adoption or custody, social security account number of spouse, verification of support documents, or other information necessary to verify that the allowance is payable to the individual.

The allowance for dependents (1) is $72 [$24] per week for each dependent, except that the total allowance for dependents paid to an individual may not exceed $216 [$72] for each week of unemployment;

(2) is payable beginning with the week during the benefit year in which the individual claims an allowance for the dependent and is payable for the remainder of the individual's eligibility for regular, extended, or supplemental payments during the benefit year;

(3) may not be claimed for a new dependent after the end of the benefit year or after the exhaustion of regular benefits in the benefit year [;

(4) REPEALED (5) REPEALED].

* Sec.

12.

AS 23.20.350 is amended by adding a new subsection to read:

(h) On January 1 of each year, the department shall increase the maximum base period wages in (d) of this section by a percentage equal to the percentage increase in the base of contributions calculated under AS 23.20.175 in comparison to the base contributions calculated for the prior year.

The new base period wage amount shall be -27- Enrolled HB 302 rounded to the nearest $250.

The department shall increase the corresponding weekly benefit amount in (d) of this section by $2 for each $250 increase in base period wages.

The department may not decrease the base period wage amount of the weekly benefit amount.

* Sec.

13.

6.14.

ThisSections 1 - 3, 9, and 13 of this Act appliesapply to an insurance policy or contract issued, delivered, or renewed on or after the effective date of secs.

1 - 53, 9, and 13 of this Act.

HB* 302Sec. -16- HB0302a New Text Underlined [DELETED TEXT BRACKETED]

15.

The uncodified law of the State of Alaska is amended by adding a new section to read:

TRANSITION:

REGULATIONS.

The director of the division of insurance may adopt regulations necessary to implement secs.

4 - 8 of this Act.

The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the effective date of the law implemented by the regulation.

* Sec.

16.

The uncodified law of the State of Alaska is amended by adding a new section to read:

STATE UNEMPLOYMENT INSURANCE LAW FEDERAL APPROVAL.

To the extentnecessary toimplement secs.

10 -12 ofthis Act, the Department ofLabor and Workforce Development shall submit for federal approval the changes to the unemployment insurance laws of the state enacted by secs.

10 - 12 of this Act.

* Sec.

17.

The uncodified law of the State of Alaska is amended by adding a new section to read:

CONDITIONAL EFFECT;

NOTIFICATION.

(a) Sections 10 - 12 of this Act take effect only if, and to the extent that, on or before July 1, 2027, the United States Secretary of Labor approves the changes to the unemployment insurance laws of this state under 26 U.S.C.

3304 (Federal Unemployment Tax Act) or determines that approval is not necessary.

(b) The commissioner of labor and workforce development shall notify the revisor of statutes in writing within 30 days after the United States Secretary of Labor approves or does not approve the changes to the unemployment insurance laws of this state.

Enrolled HB 302 -28- * Sec.

18.

If secs.

10 - 12 of this Act take effect, they take effect on January 1, 2027, or the day after the United States Secretary of Labor approves the changes to the unemployment insurance laws of this state, whichever is later.

* Sec.

19.

Sections 15 and 16 of this Act take effect immediately under AS 01.10.070(c).

* Sec.

20.

Except as provided in secs.

18 and 19 of this Act, this Act takes effect January 1, 2027.

-29- Enrolled HB 302