Alaska 34th Alaska State Legislature Status: Enacted

SB 132 — An Act relating to insurance; and providing for an effective date.

Last action — (S) EFFECTIVE DATE(S) OF LAW SEE CHAPTER

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 14, 2025. Enacted.

Signed by Governor Mike Dunleavy (Republican) on July 30, 2025.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 70% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

1501 added · 1054 removed

Plain-language change summary

The recent amendments to SB 132 include changes to how health insurance providers in Alaska must offer their plans. Specifically, insurers that provide coverage through a network of healthcare providers will now be required to also offer a non-network option at the time of enrollment, giving consumers more flexibility. This is significant because it allows individuals to choose their healthcare providers even if they are outside the insurer's network, though they may incur higher costs for doing so. Overall, these changes aim to enhance consumer choice in healthcare coverage.

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34-LS0415\G SENATE BILL NO.
LAWS OF ALASKA Source Chapter No.
132 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FOURTH LEGISLATURE - FIRST SESSION BY THE SENATE LABOR AND COMMERCE COMMITTEE Introduced:
HCS CSSB 132(FIN) am H _______ AN ACT Relating to insurance;
3/14/25 Referred:
and providing for an effective date.
Labor and Commerce, Finance A BILL FOR AN ACT ENTITLED "An Act relating to insurance;
_______________ BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
and providing for an effective date." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
THE ACT FOLLOWS ON PAGE 1 Enrolled SB 132 AN ACT Relating to insurance;
* Section 1.
and providing for an effective date.
_______________ * Section 1.
AS 21.06.120(a) is amended to read:
(a) The director may examine the affairs, transactions, accounts, records, and assets of each authorized and formerly authorized insurer and each licensed and formerly licensed managing general agent, reinsurance intermediary broker, reinsurance intermediary manager, surplus lines broker, pharmacy benefits manager, and surplus lines association as often as the director considers advisable.
In scheduling -1- Enrolled SB 132 and determining the nature, scope, and frequency of examinations, the director may consider any factor or material that the director determines is appropriate, including the results of financial statement analysis and ratios, competency of management or change of ownership, actuarial opinions, reports of independent certified public accountants, number and nature of consumer complaints, results of prior examinations, frequency of prior violations of statute and regulation, and criteria set out in the most recent edition of the Financial Condition Examiners Handbook and the Market Regulation Handbook approved by the National Association of Insurance Commissioners and in effect when the director conducts an examination.
Examination of an alien insurer may be limited to its insurance transactions and affairs in the United States.
Examination of a reciprocal insurer may also include examination of its attorney-in-fact to the extent that the transactions of the attorney-in-fact relate to the insurer.
* Sec.
3.
AS 21.06.120(d) is amended to read:
(d) The director may examine insurers, third-party administrators, and pharmacy benefits managers in participation with the National Association of Insurance Commissioners.
* Sec.
4.
AS 21.06.120 is amended by adding a new subsection to read:
(h) The director may examine a third-party administrator or pharmacy benefits manager any time the director determines that an examination or investigation is necessary.
* Sec.
5.
AS 21.06.160(a) is amended to read:
(a) Each person examined, other than examinations under AS 21.06.130 and examinations of managing general agents, [THIRD-PARTY ADMINISTRATORS,] reinsurance intermediary managers, motor vehicle service contract providers, or surplus lines brokers, shall pay a reasonable rate calculated on salary, benefit costs, and estimated division overhead for time spent directly or indirectly related to the examination.
Each person examined, other than examinations under AS 21.06.130, shall pay actual out-of-pocket business expenses, including travel expenses, incurred by division staff examiners and shall pay the compensation of a contract examiner, to be set at a reasonable customary rate, for conducting the examination upon Enrolled SB 132 -2- presentation of a detailed account of the charges and expenses by the director or under an order of the director.
The director may waive payment of all or part of the actual out-of-pocket business expenses incurred by division staff examiners, or the compensation of a contract examiner, if the director determines that payment of the expenses or compensation creates a financial hardship for a managing general agent, third-party administrator, reinsurance intermediary manager, motor vehicle service contract provider, or surplus lines broker.
The accounting may either be presented periodically during the course of the examination or at the termination of the examination.
A person may not pay and an examiner may not accept additional compensation for an examination.
A person shall pay examination expenses to the division under this subsection using an electronic payment method specified by the director.
* Sec.
6.
The non-network SB0132A -1- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G option may require that a covered person pay a higher deductible, copayment, or premium for the plan if the higher deductible, copayment, or premium results from increased costs caused by the use of a non-network provider.
The non-network option may require that a covered person pay a higher deductible, copayment, or premium for the plan if the higher deductible, copayment, or premium results from increased costs caused by the use of a non-network provider.
3.
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If the health care insurer approves the prior authorization, the insurer shall detail whether the claim will be processed as a network or non-network claim.
If the health care insurer approves the prior authorization, the insurer shall -3- Enrolled SB 132 detail whether the claim will be processed as a network or non-network claim.
4.
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If the director gives the insurer 90 days' advance notice, and for good cause, the director may require an SB 132 -2- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G insurer to file an audited financial report earlier than June 1 of each year.
If the director gives the insurer 90 days' advance notice, and for good cause, the director may require an insurer to file an audited financial report earlier than June 1 of each year.
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(b) Each insurer, and each formerly authorized insurer with respect to premiums written while an authorized insurer in this state, shall pay a tax on the total direct premium written during the year ending on the preceding December 31 and paid for the insurance of property or risks resident or located in the state [, OTHER THAN WET MARINE AND TRANSPORTATION INSURANCE,] after deducting from the total direct premium income the applicable cancellations, returned premiums, the unabsorbed portion of any deposit premium, all policy dividends, unabsorbed premiums refunded to policyholders, refunds, savings, savings coupons, and other similar returns paid or credited to policyholders with respect to their policies.
(b) Each insurer, and each formerly authorized insurer with respect to Enrolled SB 132 -4- premiums written while an authorized insurer in this state, shall pay a tax on the total direct premium written during the year ending on the preceding December 31 and paid for the insurance of property or risks resident or located in the state [, OTHER THAN WET MARINE AND TRANSPORTATION INSURANCE,] after deducting from the total direct premium income the applicable cancellations, returned premiums, the unabsorbed portion of any deposit premium, all policy dividends, unabsorbed premiums refunded to policyholders, refunds, savings, savings coupons, and other similar returns paid or credited to policyholders with respect to their policies.
(2) for hospital and medical service corporations, six perceof their gross premiums less claims paid;
(2) for hospital and medical service corporations, six percent of their gross premiums less claims paid;
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SB0132A -3- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G (3) for wet marine and transportation insurance, three-quarters of one percent.
(3) for wet marine and transportation insurance, three-quarters of one percent.
7.
11.
(2) accept the department's right of recovery and the assignment to the department of any right of an individual or other entity to payment from the party for an item or service for which payment has been made under AS 47.07;
(2) accept the department's right of recovery and the assignment to the -5- Enrolled SB 132 department of any right of an individual or other entity to payment from the party for an item or service for which payment has been made under AS 47.07;
8.
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(h) The director shall consider the list of reciprocal jurisdictions published through the National Association of Insurance Commissioners committee process in SB 132 -4- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G determining a reciprocal jurisdiction and has the discretion to defer to the list.
(h) The director shall consider the list of reciprocal jurisdictions published through the National Association of Insurance Commissioners committee process in determining a reciprocal jurisdiction and has the discretion to defer to the list.
The director may add an assuming insurer to a list if a National Association of Insurance Commissioners accredited jurisdiction has added the assuming insurer to a list of assuming insurers or, if upon initial eligibility, the assuming insurer submits the information to the director as required under (a)(6)(D) of this section and complies with any additional requirements the director may impose by regulation.
The director may add an assuming insurer to a list if a National Association of Insurance Commissioners accredited jurisdiction has added the assuming insurer to a list of Enrolled SB 132 -6- assuming insurers or, if upon initial eligibility, the assuming insurer submits the information to the director as required under (a)(6)(D) of this section and complies with any additional requirements the director may impose by regulation.
Upon entry of an order of rehabilitation, liquidation, or conservation against the ceding insurer, the supervising court may [SHALL] require an assuming insurer under (a)(6) of this section to post 100 percent security for the benefit of the ceding SB0132A -5- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G insurer or its estate.
Upon entry of an order of rehabilitation, liquidation, or conservation against the ceding insurer, the supervising court may [SHALL] require an assuming insurer under (a)(6) of this section to post 100 percent security for the benefit of the ceding insurer or its estate.
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(2) "reciprocal jurisdiction" means a jurisdiction that (A) is not a United States jurisdiction that is subject to an in- force covered agreement with the United States, each within its legal authority, or in the case of a covered agreement between the United States and the European Union, is a member state of the European Union;
(2) "reciprocal jurisdiction" means a jurisdiction that (A) is not a United States jurisdiction that is subject to an in- force covered agreement with the United States, each within its legal authority, -7- Enrolled SB 132 or in the case of a covered agreement between the United States and the European Union, is a member state of the European Union;
10.
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SB 132 -6- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G (e) An insurer shall establish reserves using a principle-based valuation that meets the following conditions for policies or contracts as specified in the valuation manual:
(e) An insurer shall establish reserves using a principle-based valuation that meets the following conditions for policies or contracts as specified in the valuation manual:
(3) incorporate assumptions that are derived in one of the following manners:
Enrolled SB 132 -8- (3) incorporate assumptions that are derived in one of the following manners:
(B) provide to the director an annual certification of the SB0132A -7- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G effectiveness of the internal controls with respect to the principle-based valuation;
(B) provide to the director an annual certification of the effectiveness of the internal controls with respect to the principle-based valuation;
11.
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(12) "policyholder behavior" means a lapse, withdrawal, transfer, deposit, premium payment, loan, annuitization, or election of a policy benefit by the terms of a policy or contract, or another [AN] action of a policyholder, contract holder, or another person with the right to elect options;
(12) "policyholder behavior" means a lapse, withdrawal, transfer, -9- Enrolled SB 132 deposit, premium payment, loan, annuitization, or election of a policy benefit by the terms of a policy or contract, or another [AN] action of a policyholder, contract holder, or another person with the right to elect options;
12.
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AS 21.27.010(a) is amended to read:
(a) Except as provided otherwise in this chapter, a person may not act as or represent to be an insurance producer, managing general agent, reinsurance intermediary broker, reinsurance intermediary manager, surplus lines broker, third- party administrator, pharmacy benefits manager, or independent adjuster in this state or relative to a subject resident, located, or to be performed in this state unless licensed under this chapter.
A person may not act as or represent to be a managing general agent, reinsurance intermediary broker, third-party administrator, pharmacy benefits manager, or reinsurance intermediary manager representing an insurer domiciled in this state regarding a risk located outside this state unless licensed by this state.
* Sec.
17.
AS 21.27.010(c) is amended to read:
(c) A third-party administrator is not required to be licensed as a managing general agent if the third-party administrator (1) is licensed [REGISTERED] under this chapter [AS 21.27.630 - 21.27.660];
or (2) only investigates and adjusts claims and is licensed under this chapter as an independent adjuster.
* Sec.
18.
AS 21.27.010 is amended by adding a new subsection to read:
(l) In addition to the requirements under AS 21.27.010 - 21.27.460, a (1) third-party administrator is subject to the licensing requirements under AS 21.27.630 - 21.27.660;
and (2) pharmacy benefits manager is subject to the licensing requirements under AS 21.27.901 - 21.27.975.
* Sec.
19.
(c) To qualify for issuance or renewal of a license as a firm insurance producer, a firm managing general agent, a firm reinsurance intermediary broker, a firm reinsurance intermediary manager, a firm surplus lines broker, or a firm independent adjuster, an applicant or licensee shall (1) comply with (b)(4) and (5) of this section;
(c) To qualify for issuance or renewal of a license as a firm insurance Enrolled SB 132 -10- producer, a firm managing general agent, a firm reinsurance intermediary broker, a firm reinsurance intermediary manager, a firm surplus lines broker, or a firm independent adjuster, an applicant or licensee shall (1) comply with (b)(4) and (5) of this section;
and SB 132 -8- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G (5) notify the director, in writing, not later than 30 days after a change in the firm's compliance officer.
and (5) notify the director, in writing, not later than 30 days after a change in the firm's compliance officer.
13.
20.
individual study programs or correspondence courses may be used to fulfill continuing education requirements if approved by the director;
individual study programs or correspondence courses may be used to fulfill continuing education requirements if -11- Enrolled SB 132 approved by the director;
14.
21.
A licensee shall report to the director in writing any administrative action taken against the licensee by a governmental agency [OF ANOTHER STATE, BY A GOVERNMENTAL AGENCY OF ANOTHER JURISDICTION,] or by a financial SB0132A -9- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G industry regulatory authority sanction or arbitration proceeding not later than 30 days after the final disposition of the action.
A licensee shall report to the director in writing any administrative action taken against the licensee by a governmental agency [OF ANOTHER STATE, BY A GOVERNMENTAL AGENCY OF ANOTHER JURISDICTION,] or by a financial industry regulatory authority sanction or arbitration proceeding not later than 30 days after the final disposition of the action.
15.
22.
AS 21.27.060(d) is amended to read:
(d) This section does not apply to an applicant (1) for a limited license under AS 21.27.150(a)(1), (4), (5), or (8);
[OR] (2) who, at any time within the one-year period immediately preceding the date the current pending application is received by the division, had been licensed in good standing in this state under a license requiring substantially similar qualifications as required by the license applied for;
or (3) who is a compliance officer for a third-party administrator or pharmacy benefits manager.
* Sec.
23.
If a person has met the applicable requirements of AS 21.27.020 and 21.27.270, the director shall issue a license for one or more of the following lines of authority:
If a person has met the applicable Enrolled SB 132 -12- requirements of AS 21.27.020 and 21.27.270, the director shall issue a license for one or more of the following lines of authority:
(8) [REPEALED SB 132 -10- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G (9) REPEALED (10)] any insurance for which a limited lines license may be issued under AS 21.27.150.
(8) [REPEALED (9) REPEALED (10)] any insurance for which a limited lines license may be issued under AS 21.27.150.
16.
24.
(b) Unless the director denies or refuses to renew a license under AS 21.27.410, the director shall issue a nonresident producer, limited lines, surplus lines broker, managing general agent, reinsurance intermediary broker, independent adjuster, or reinsurance intermediary manager license to a person who is not a resident of this state if (1) the person is currently licensed and is in good standing in the person's home state;
(b) Unless the director denies or refuses to renew a license under AS 21.27.410, the director shall issue a nonresident producer, limited lines, surplus lines broker, managing general agent, reinsurance intermediary broker, independent adjuster, or reinsurance intermediary manager license to a person who is not a resident of this state if (1) the person is currently licensed and is in good standing in the -13- Enrolled SB 132 person's home state;
17.
25.
[A RESIDENT OF CANADA MAY NOT BE LICENSED AS AN INDEPENDENT ADJUSTER UNDER THIS SECTION UNLESS THE APPLICANT HAS OBTAINED A SB0132A -11- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G RESIDENT INDEPENDENT ADJUSTER LICENSE IN ANOTHER STATE OR DECLARED ANOTHER STATE THE APPLICANT'S HOME STATE AND OBTAINED AN INDEPENDENT ADJUSTER LICENSE IN THAT STATE.] * Sec.
[A RESIDENT OF CANADA MAY NOT BE LICENSED AS AN INDEPENDENT ADJUSTER UNDER THIS SECTION UNLESS THE APPLICANT HAS OBTAINED A RESIDENT INDEPENDENT ADJUSTER LICENSE IN ANOTHER STATE OR DECLARED ANOTHER STATE THE APPLICANT'S HOME STATE AND OBTAINED AN INDEPENDENT ADJUSTER LICENSE IN THAT STATE.] * Sec.
18.
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(j) A nonresident applicant for issuance or renewal of an independent adjuster license or firm independent adjuster license who designates this state as the applicant's home state must qualify for licensure under AS 21.27.020 and apply for the issuance or renewal of the license in accordance with AS 21.27.040.
(j) A nonresident applicant for issuance or renewal of an independent adjuster Enrolled SB 132 -14- license or firm independent adjuster license who designates this state as the applicant's home state must qualify for licensure under AS 21.27.020 and apply for the issuance or renewal of the license in accordance with AS 21.27.040.
20.
28.
AS 21.27.380(b) is amended to read:
(b) If a license is not renewed on or before the renewal date set by the director, the license expires.
A licensee may not act as or represent to be an insurance producer, managing general agent, reinsurance intermediary broker, third-party administrator, pharmacy benefits manager, reinsurance intermediary manager, surplus lines broker, or independent adjuster during the time a license has expired.
The director may reinstate an expired license if the person continues to qualify for the license and pays renewal license fees and a delayed renewal penalty.
Reinstatement does not exempt a person from a penalty provided by law for transacting business while unlicensed.
A license may not be renewed if it has expired for two years or longer.
* Sec.
29.
21.
30.
AS 21.27.630(a) is amended to read:
(a) A person may not act as or represent to be a third-party administrator in this state or relative to a subject resident, located, or to be performed in this state, unless licensed [REGISTERED] under this chapter or in another jurisdiction under AS 21.27.650.
A person may not act as or represent to be a third-party administrator representing an insurer domiciled in this state regarding a risk located outside this state unless licensed [REGISTERED] by this state under the provisions of this chapter.
* Sec.
31.
AS 21.27.630(b) is amended to read:
(b) A third-party administrator may not transact business for a kind or class of authority for which the person is not licensed [REGISTERED].
* Sec.
32.
AS 21.27.630(c) is amended to read:
(c) Except as otherwise provided in this chapter, a tht administrator -15- Enrolled SB 132 shall be licensed [REGISTERED] under this chapter [AS 21.27.630 - 21.27.660] unless the third-party administrator only investigates and adjusts claims and is licensed under this chapter as an independent adjuster.
* Sec.
33.
(d) A third-party administrator may not use a fictitious name or alias unless the third-party administrator's [LICENSEE'S] legal name and fictitious name or alias are on the registration.
(d) A third-party administrator may not use a fictitious name or alias unless the third-party administrator's [LICENSEE'S] legal name and fictitious name or alias are on the license [REGISTRATION].
22.
34.
AS 21.27.630(e) is amended to read:
(e) A person who is an employee of an admitted insurer, who acts within the course and scope of that employment, and within the scope of the insurer's certificate of authority is not required to be licensed [REGISTERED] under this chapter [SECTION].
* Sec.
35.
AS 21.27.630(g) is amended to read:
(g) A credit union or a financial institution subject to supervision or examination by federal or state banking authorities, or a mortgage lender, that performs no functions other than advancing premiums to the insurer and collecting a debt from the insured is not required to be licensed [REGISTERED] as a third-party administrator.
* Sec.
36.
AS 21.27.630(h) is amended to read:
(h) A credit card issuing company that performs no functions, including adjustment or settlement of claims, other than advancing and collecting premiums from its credit card holders who have authorized collection is not required to be licensed [REGISTERED] as a third-party administrator.
* Sec.
37.
AS 21.27.630(i) is amended to read:
(i) A person who only provides services to bona fide employee benefit plans that are established by an employer or an employee organization, or both, for which the insurance laws of this state are preempted under the Employee Retirement Income Security Act of 1974, is not required to be additionally licensed [REGISTERED] as a third-party administrator if the person certifies to the director on or before February 1 of each year its exempt status.
* Sec.
38.
AS 21.27.630(j) is amended to read:
Enrolled SB 132 -16- (j) A third-party administrator [(1) SHALL APPLY FOR REGISTRATION UNDER THE PROCEDURES OF AS 21.27.040;
(2) SHALL RENEW ITS REGISTRATION UNDER THE PROCEDURES OF AS 21.27.380;
AND (3)] is subject to hearings and orders on violations;
denial, nonrenewal, suspension, or revocation of license [REGISTRATION];
penalties;
and surrender of license [REGISTRATION] under the procedures set out in AS 21.27.405 - 21.27.460.
* Sec.
39.
AS 21.27.630(k) is amended to read:
(k) An insurer that holds a certificate of authority issued by the director and is in good standing under this title is not required to be licensed [REGISTERED] as a third-party administrator in this state.
* Sec.
40.
AS 21.27.630(l) is amended to read:
(l) A person that is not required to be licensed [REGISTERED] as a third- party administrator under (e) - (k) of this section must file an annual [A] certification with the director that the person meets the requirements for exemption on or before February 1 of each year.
* Sec.
41.
AS 21.27.630(m) is amended to read:
(m) A person who is an employee of a third-party administrator and who acts within the course and scope of that employment and within the scope of the written contract required under AS 21.27.650(a)(4) is not required to be licensed [REGISTERED] as a third-party administrator under this sectionunless that person is the designated compliance officer under AS 21.27.640(b)(6).
The third-party administrator is responsible for the acts of its employees regulated under this title.
* Sec.
42.
AS 21.27.640(a) is amended to read:
(a) The director may not issue or renew a license [REGISTRATION] except in compliance with this chapter and may not issue a license [REGISTRATION] to a person, or to be exercised by a person, found by the director to be untrustworthy, incompetent, financially irresponsible, or who has not established to the satisfaction of the director that the person is qualified under this chapter.
* Sec.
43.
(b) To qualify for issuance or renewal of a registration, an applicant or registrant shall comply with this title, regulations adopted under AS 21.06.090, and (1) be a trustworthy person;
-17- Enrolled SB 132 (b) To qualify for issuance or renewal of a license [REGISTRATION], an applicant or licensee [REGISTRANT] shall comply with this title, regulations adopted under AS 21.06.090, and (1) be a trustworthy person;
(3) not have committed an act that is a cause for denial, nonrenewal, SB 132 -12- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G suspension, or revocation of a registration or license in this state or another jurisdiction;
(3) not have committed an act that is a cause for denial, nonrenewal, suspension, or revocation of a registration or license in this state or another jurisdiction;
shareholders holding directly or indirectly 10 percent or more of the voting securities of the third-party administrator;
shareholders Enrolled SB 132 -18- holding directly or indirectly 10 percent or more of the voting securities of the third-party administrator;
(D) certified financial statements for the preceding two years, or for each year and partial year that the applicant has been in business if less than two years, prepared by an independent certified public accountant establishing that the applicant is solvent, that the applicant's system of accounting, internal control, and procedure is operating effectively to provide SB0132A -13- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G reasonable assurance that money is promptly accounted for and paid to the person entitled to the money, and any other information that the director may require to review the current financial condition of the applicant;
(D) certified financial statements for the preceding two years, or for each year and partial year that the applicant has been in business if less than two years, prepared by an independent certified public accountant establishing that the applicant is solvent, that the applicant's system of accounting, internal control, and procedure is operating effectively to provide reasonable assurance that money is promptly accounted for and paid to the person entitled to the money, and any other information that the director may require to review the current financial condition of the applicant;
(B) the final disposition of an administrative action taken against the registrant by a governmental agency [OF ANOTHER STATE, BY A GOVERNMENTAL AGENCY OF ANOTHER JURISDICTION,] or by a financial industry regulatory authority sanction or arbitration proceeding;
(B) the final disposition of an administrative action taken against the licensee [REGISTRANT] by a governmental agency [OF ANOTHER STATE, BY A GOVERNMENTAL AGENCY OF ANOTHER JURISDICTION,] or by a financial industry regulatory authority sanction or arbitration proceeding;
in addition, a registrant shall submit to the director documents relating to the final disposition on, including the final order and other relevant legal documents in, the action;
in addition, a licensee [REGISTRANT] shall submit to the director documents relating to the final disposition on, including the final order and other relevant legal documents in, the action;
23.
44.
AS 21.27.640(d) is amended to read:
-19- Enrolled SB 132 (d) If the director finds that the applicant or licensee [REGISTRANT] is qualified and that application, license [REGISTRATION], or renewal fees have been paid, the director may issue or renew the license [REGISTRATION].
* Sec.
45.
AS 21.27.640 is amended by adding a new subsection to read:
(e) The fee for an initial license is $2,000.
The fee to renew a license is $2,000, and the license must be renewed every two years.
* Sec.
46.
AS 21.27.650(a) is amended to read:
(a) An insurer may not transact business with a third-party administrator unless (1) the insurer holds a certificate of authority in this state if required under this title;
(2) the third-party administrator is licensed [REGISTERED] under this chapter [OR THE THIRD-PARTY ADMINISTRATOR HAS FILED A CERTIFICATION WITH THE DIRECTOR CERTIFYING THAT THE THIRD- PARTY ADMINISTRATOR IS OPERATING ONLY FOR A FOREIGN INSURER OTHER THAN A SELF-FUNDED MULTIPLE EMPLOYER WELFARE ARRANGEMENT REGULATED UNDER AS 21.85 AND IS REGISTERED AS A THIRD-PARTY ADMINISTRATOR BY THE THIRD-PARTY ADMINISTRATOR'S RESIDENT INSURANCE REGULATOR IN A STATE THAT THE DIRECTOR HAS DETERMINED HAS ENACTED PROVISIONS SUBSTANTIALLY SIMILAR TO THOSE CONTAINED IN AS 21.27.630 - 21.27.650 AND THAT IS ACCREDITED BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS];
(3) the third-party administrator provides the director on January 1, April 1, July 1, and October 1 of each year (A) a list of persons who supervise or have responsibility over personnel performing administrative functions, including claims administration and payment, marketing administrative functions, premium accounting, premium billing, coverage verification, underwriting, or certificate issuance upon a subject resident, located, or to be performed in this state;
(B) a list of current insurers under contract;
and Enrolled SB 132 -20- (C) other information the director may require;
(4) a written contract is in effect between the parties that establishes the responsibilities of each party, indicates both parties' share of responsibility for a particular function, and specifies the division of responsibilities;
(5) there is in effect a written contract between the insurer and third- party administrator that contains the following provisions:
(A) the insurer may terminate the contract for cause upon written notice sent by certified mail to the third-party administrator and may suspend the underwriting authority of the third-party administrator during a dispute regarding the cause for termination;
but the insurer must fulfill all lawful obligations with respect to policies affected by the written agreement, regardless of any dispute between the insurer and the third-party administrator;
(B) the third-party administrator shall render accounts to the insurer detailing all transactions and remit all money due under the contract to the insurer at least monthly;
(C) all money collected for the account of an insurer shall be held by the third-party administrator as a fiduciary;
(D) all payments on behalf of the insurer shall be held by the third-party administrator as a fiduciary;
(E) the third-party administrator may not retain more than three months' estimated claims payments and allocated loss adjustment expenses;
(F) the third-party administrator shall maintain separate records for each insurer in a form usable by the insurer;
the insurer or its authorized representative shall have the right to audit and the right to copy all accounts and records related to the insurer's business;
the director, in addition to other authority granted in this title, shall have access to all books, bank accounts, and records of the third-party administrator in a form usable to the director;
any trade secrets contained in books and records reviewed by the director, including the identity and addresses of policyholders and certificate holders, shall be kept confidential, except that the director may use the information in a proceeding instituted against the third-party administrthe insurer;
-21- Enrolled SB 132 (G) the contract may not be assigned in whole or in part by the third-party administrator;
(H) if the contract permits the third-party administrator to do underwriting, the contract must include the following:
(i) the third-party administrator's maximum annual premium volume;
(ii) the rating system and basis of the rates to be charged;
(iii) the types of risks that may be written;
(iv) maximum limits of liability;
(v) applicable exclusions;
(vi) territorial limitations;
(vii) policy cancellation provisions;
(viii) the maximum policy term;
and (ix) that the insurer shall have the right to cancel or not renew a policy of insurance subject to applicable state law;
(I) if the contract permits the third-party administrator to administer claims on behalf of the insurer, the contract must include the following:
(i) written settlement authority must be provided by the insurer and may be terminated for cause upon the insurer's written notice sent by certified mail to the third-party administrator or upon the termination of the contract, but the insurer may suspend the settlement authority during a dispute regarding the cause of termination;
(ii) claims shall be reported to the insurer within 30 days;
(iii) a copy of the claim file shall be sent to the insurer upon request or as soon as it becomes known that the claim has the potential to exceed an amount determined by the director or exceeds the limit set by the insurer, whichever is less, involves a coverage dispute, may exceed the third-party administrator's claims settlement authority, Enrolled SB 132 -22- is open for more than six months, involves extra contractual allegations, or is closed by payment in excess of an amount set by the director or an amount set by the insurer, whichever is less;
(iv) each party to the contract shall comply with unfair claims settlement statutes and regulations;
(v) transmission of electronic data must occur at least monthly if electronic claim files are in existence;
and (vi) claim files shall be the sole property of the insurer;
upon an order of liquidation of the insurer, the third-party administrator shall have reasonable access to and the right to copy the files on a timely basis;
and (J) the contract may not provide for commissions, fees, or charges contingent upon savings obtained in the adjustment, settlement, and payment of losses covered by the insurer's obligations;
but a third-party administrator may receive performance-based compensation for providing hospital or other auditing services or may receive compensation based on premiums or charges collected or the number of claims paid or processed.
* Sec.
47.
AS 21.27.650(q) is amended to read:
(q) The director may, without advance notice or hearing, immediately suspend by order the license [REGISTRATION] of a third-party administrator if the director finds that one or more of the following circumstances exist:
(1) the third-party administrator is insolvent or impaired;
(2) a proceeding for bankruptcy, receivership, conservatorship, or rehabilitation, or another delinquency proceeding regarding the third-party administrator has been commenced in any state or by a governmental agency of another jurisdiction;
(3) the third-party administrator is in an unsound condition, or is in a condition or using methods or practices that render its further transaction of insurance injurious to policy holders or the public.
* Sec.
48.
AS 21.27.901 is amended to read:
Sec.
21.27.901.
Licensure [REGISTRATION] of pharmacy benefits -23- Enrolled SB 132 managers;
scope of business practice.
(a) A person may not conduct business in the state as a pharmacy benefits manager unless the person is licensed [REGISTERED] with the director.
(b) A pharmacy benefits manager licensed [REGISTERED] under this section may (1) contract with an insurer to administer or manage pharmacy benefits provided by an insurer for a covered person, including claims processing services for and audits of payments for prescription drugs and medical devices and supplies;
and (2) contract with network pharmacies.
(c) A pharmacy benefits manager (1) shall apply for licensure [REGISTRATION] following the same procedures for licensure set out in AS 21.27.040;
(2) is subject to hearings and orders on violations;
denial, nonrenewal, suspension, or revocation of license [REGISTRATION];
penalties;
and surrender of license [REGISTRATION] under the procedures set out in AS 21.27.405 - 21.27.460.
(d) Each day that a pharmacy benefits manager conducts business in the state as a pharmacy benefits manager without being licensed [REGISTERED] is a separate violation of this section, and each separate violation is subject to the maximum civil penalty under AS 21.97.020.
* Sec.
49.
AS 21.27 is amended by adding new sections to read:
Sec.
21.27.903.
Pharmacy benefits manager qualifications.
(a) An application for a pharmacy benefits manager license must be in a form prescribed by the director.
(b) The director may only issue or renew a license if ctor is satisfied that the applicant is a trustworthy person.
The director may not issue a license to an applicant who has committed an act that is a cause for denial, nonrenewal, suspension, or revocation of a registration or license in this state or another jurisdiction.
(c) An application must disclose (1) information concerning the identity, professional history, professional experience, and background history of all owners, officers, directors, or partners;
Enrolled SB 132 -24- (2) any administrative action taken against the owners, officers, directors, or partners by a governmental agency of this or another jurisdiction and any sanction imposed by a financial industry regulatory authority or arbitration proceeding;
(3) any criminal prosecution in this state or another state or jurisdiction of an owner, officer, director, or partner;
the application must include the criminal complaint, calendaring order, and other relevant legal documents.
(d) An application must designate a compliance officer for the pharmacy benefits manager and include the name, business address, telephone number, electronic mailing address, professional experience, and information concerning the background history of the officer.
(e) An application must include (1) the required application fee;
(2) the organizational documents of the pharmacy benefits manager, including articles of incorporation, articles of association, partnership agreement, trade name certificate, trust agreement, shareholder agreement, and other applicable documents, as well as the endorsements to the required documents;
(3) the name and address of the pharmacy benefits manager's agent for service of process in the state;
(4) the bylaws, rules, regulations, or similar documents regulating the internal affairs of the pharmacy benefits manager;
(5) the name, electronic mailing address, physical address, official position, and professional qualifications of each person who is responsible for the conduct of affairs of the pharmacy benefits manager, including the board of directors, board of trustees, executive committee, or other governing board or committee;
the principal officers in the case of a corporation, or the partners or members in the case of a partnership, limited liability company, limited liability partnership, or association;
shareholders holding directly or indirectly 10 percent or more of the voting securities of the pharmacy benefits manager;
and any other person who exercises control or influence over the affairs of the pharmacy benefits manager;
(6) certified financial statements for the preceding two years, or for -25- Enrolled SB 132 each year and partial year that the applicant has been in business if less than two years, prepared by an independent certified public accountant establishing that the applicant is solvent, that the applicant's system of accounting, internal control, and procedure is operating effectively to provide reasonable assurance that money is promptly accounted for and paid to the person entitled to the money, and any other information that the director may require to review the current financial condition of the applicant.
Sec.
21.27.904.
Pharmacy benefits manager required notifications.
(a) A licensed pharmacy benefits manager shall notify the director in writing not later than 30 days after (1) a change in the information contained within the licensee's license, place of business, electronic mailing address, physical mailing address, or telephone number;
(2) a change in compliance officer, residence, place of business, mailing address, or telephone number;
(3) the final disposition of an administrative action taken against the licensee by a governmental agency of another state, by a governmental agency of another jurisdiction, or by a financial industry regulatory authority sanction or arbitration proceeding;
in addition, a licensee shall submit to the director documents relating to the final disposition on, including the final order and other relevant legal documents in, the action;
or (4) a conviction of a misdemeanor or felony of the pharmacy benefits manager, its officers, designated compliance officer, directors, partners, or owners.
(b) Failure to provide the information required under this section within 30 days is cause for denial, revocation, or suspension of license.
* Sec.
50.
AS 21.27.905(a) is amended to read:
(a) A pharmacy benefits manager shall biennially renew a license [REGISTRATION] with the director following the procedures for license renewal in AS 21.27.380.
The fee for an initial license is $20,000, and the fee to renew a license is $20,000.
* Sec.
51.
AS 21.27.975(15) is amended to read:
(15) "pharmacy benefits manager" means a person that contracts with a Enrolled SB 132 -26- pharmacy on behalf of an insurer to process claims or pay pharmacies for prescription drugs or medical devices and supplies or provide network management for pharmacies regardless of ownership of the pharmacy benefits manager;
* Sec.
52.
24.
53.
(12) "home state," with respect to (A) an insurance producer, means the District of Columbia or a state or territory of the United States in which an insurance producer maintains SB 132 -14- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G the producer's principal place of residence or principal place of business and is licensed to act as an insurance producer;
(12) "home state," with respect to (A) an insurance producer, means the District of Columbia or a state or territory of the United States in which an insurance producer maintains the producer's principal place of residence or principal place of business and is licensed to act as an insurance producer;
25.
54.
* Sec.
-27- Enrolled SB 132 * Sec.
26.
55.
27.
56.
If the tax prescribed by this section is not paid [BY THE NONADMITTED INSURER] within the time stated [OR BY THE INSURED WITHIN THE TIME STATED] after notice of default from the director [BY THE NONADMITTED SB0132A -15- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G INSURER], the tax may be increased by (1) a late payment fee of $1,000 or 10 percent of the tax due, whichever is greater;
If the tax prescribed by this section is not paid [BY THE NONADMITTED INSURER] within the time stated [OR BY THE INSURED WITHIN THE TIME STATED] after notice of default from the director [BY THE NONADMITTED INSURER], the tax may be increased by (1) a late payment fee of $1,000 or 10 percent of the tax due, whichever is greater;
28.
57.
(c) Health care insurance and disability insurance may not be procured under this chapter (1) for the purpose of obtaining a lower premium rate than acceptable by an authorized insurer;
Enrolled SB 132 -28- (c) Health care insurance and disability insurance may not be procured under this chapter (1) for the purpose of obtaining a lower premium rate than acceptable by an authorized insurer;
SB 132 -16- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G (2) "health care insurance" has the meaning given in AS 21.12.050(b).
(2) "health care insurance" has the meaning given in AS 21.12.050(b).
29.
58.
IN THE CASE OF AN INSURANCE EXCHANGE, THE STATEMENT MAY BE AN AGGREGATE COMBINED STATEMENT OF ALL UNDERWRITING SYNDICATES OPERATING DURING THE PERIOD REPORTED UPON.] * Sec.
IN THE CASE OF AN INSURANCE EXCHANGE, THE STATEMENT MAY BE AN AGGREGATE COMBINED STATEMENT OF ALL UNDERWRITING SYNDICATES OPERATING DURING THE PERIOD REPORTED UPON.] -29- Enrolled SB 132 * Sec.
30.
59.
31.
60.
SB0132A -17- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G Sec.
Sec.
32.
61.
(8) "home state," for purposes of determining the home state of an insured in a multistate or multinational placement of nonadmitted insurance, is defined as follows:
(8) "home state," for purposes of determining the home state of an Enrolled SB 132 -30- insured in a multistate or multinational placement of nonadmitted insurance, is defined as follows:
(B) if two or more insureds from an affiliated group are named SB 132 -18- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G insureds on a single policy, "home state" under (A) of this paragraph is based on the member of the affiliated group that has the largest percentage of premium attributed to it under the insurance contract;
(B) if two or more insureds from an affiliated group are named insureds on a single policy, "home state" under (A) of this paragraph is based on the member of the affiliated group that has the largest percentage of premium attributed to it under the insurance contract;
or (ii) if an insured's high-level officers direct, control, and coordinate the business activities of the insured in more than one state or if the insured maintains its headquarters in a jurisdiction outside the United States, the state where the greatest percentage of the insured's taxable premium for the insurance contract is allocated;
or (ii) if an insured's high-level officers direct, control, and coordinate the business activities of the insured in more than one state or if the insured maintains its headquarters in a jurisdiction outside the United States, the state where the greatest -31- Enrolled SB 132 percentage of the insured's taxable premium for the insurance contract is allocated;
33.
62.
(15) "wet marine and transportation insurance" has the meaning given SB0132A -19- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G in AS 21.12.090(b) [MEANS ONE OR MORE OF THE FOLLOWING:
(15) "wet marine and transportation insurance" has the meaning given in AS 21.12.090(b) [MEANS ONE OR MORE OF THE FOLLOWING:
OR (D) INSURANCE OF PERSONAL PROPERTY AND INTERESTS IN PERSONAL PROPERTY, IN COURSE OF EXPORTATION FROM OR IMPORTATION INTO A COUNTRY OR IN THE COURSE OF COASTAL OR INLAND WATER TRANSPORTATION, INCLUDING TRANSPORTATION BY LAND, WATER, OR AIR FROM POINT OF ORIGIN TO FINAL DESTINATION IN CONNECTION WITH ANY AND ALL RISKS OR PERILS OF NAVIGATION, TRANSIT, OR TRANSPORTATION, AND WHILE BEING REPAIRED FOR AND WHILE AWAITING SHIPMENT, AND DURING ANY DELAYS, TRANSSHIPMENT, OR RESHIPMENT INCIDENT TO THEM].
OR (D) INSURANCE OF PERSONAL PROPERTY AND INTERESTS IN PERSONAL PROPERTY, IN COURSE OF EXPORTATION FROM OR IMPORTATION INTO A COUNTRY OR IN THE COURSE OF COASTAL OR INLAND WATER TRANSPORTATION, INCLUDING TRANSPORTATION BY LAND, WATER, OR AIR FROM POINT OF ORIGIN TO FINAL DESTINATION IN CONNECTION WITH ANY AND ALL RISKS OR PERILS OF NAVIGATION, TRANSIT, OR TRANSPORTATION, AND WHILE BEING REPAIRED FOR AND WHILE AWAITING SHIPMENT, AND DURING ANY DELAYS, Enrolled SB 132 -32- TRANSSHIPMENT, OR RESHIPMENT INCIDENT TO THEM].
34.
63.
SB 132 -20- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G (5) fail to affirm or deny coverage of claims within a reasonable time of the completion of proof-of-loss statements;
(5) fail to affirm or deny coverage of claims within a reasonable time of the completion of proof-of-loss statements;
(12) make known to an insured or third-party claimant a policy of appealing from an arbitration award in favor of an insured or third-party claimant for the purpose of compelling the insured or third-party claimant to accept a settlement or compromise less than the amount awarded in arbitration;
(12) make known to an insured or third-party claimant a policy of appealing from an arbitration award in favor of an insured or third-party claimant for -33- Enrolled SB 132 the purpose of compelling the insured or third-party claimant to accept a settlement or compromise less than the amount awarded in arbitration;
or SB0132A -21- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G (18) offer a valuation that depreciates the expense of labor in violation of AS 21.60.030.
or (18) offer a valuation that depreciates the expense of labor in violation of AS 21.60.030.
35.
64.
36.
65.
37.
66.
(a) An insurer may only fail to renew a personal insurance policy on the policy's annual anniversary.
(a) An insurer may only fail to renew a personal insurance policy on the Enrolled SB 132 -34- policy's annual anniversary.
38.
67.
39.
68.
AS 21.36 is amended by adding a new section to Article 4 to read:
AS 21.36 is amended by adding a new section to read:
An insurer may not cancel or fail to renew a property insurance policy, or a SB 132 -22- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G casualty insurance policy insuring a business or commercial property, as a result of a claim to an insurer made solely to meet a local, state, or federal aid requirement where the insurer does not apply coverage and does not pay a benefit.
An insurer may not cancel or fail to renew a property insurance policy, or a casualty insurance policy insuring a business or commercial property, as a result of a claim to an insurer made solely to meet a local, state, or federal aid requirement where the insurer does not apply coverage and does not pay a benefit.
40.
69.
AS 21.36.475(a) is amended to read:
(a) An owner controlled insurance program or a contractor controlled insurance program is subject to both AS 21.39 and AS 21.42, must be approved by the director, and shall be allowed only for a major construction project or a major multi- owner residential construction project.
Owner controlled and contractor controlled insurance programs are limited to property insurance as defined in AS 21.12.060 and casualty insurance as defined in AS 21.12.070.
* Sec.
70.
(3) insurance covering one or more affiliates, subsidiaries, partners, or joint venture partners of a person;
or (3) insurance covering one or more affiliates, subsidiaries, partners, or joint venture partners of a person [;
or (4) insurance policies endorsed to name one or more persons as additional insureds if naming a person as an additional insured is a term required by a contract;
OR (4) INSURANCE POLICIES ENDORSED TO NAME ONE OR -35- Enrolled SB 132 MORE PERSONS AS ADDITIONAL INSUREDS].
this paragraph does not apply to an owner controlled or contractor controlled insurance program for a major construction project.
41.
71.
AS 21.36.475(c) is amended by adding a new paragraph to read:
(7) "major multi-owner residential construction project" means a construction project for condominiums, townhouses, cooperative housing developments, or other residential housing involving at least 40 units and three or more property owners with a total cost of $20,000,000 or more.
* Sec.
72.
(4) [(5)] the person provides the consumer the right to cancel the health SB0132A -23- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G discount plan within 30 days after purchase of the plan;
(4) [(5)] the person provides the consumer the right to cancel the health discount plan within 30 days after purchase of the plan;
(5) [AND (6)] the person provides the consumer with a full refund of all payments made, except for a nominal processing fee, within 30 days after notification of cancellation of the plan under (5) of this subsection;
(5) [AND (6)] the person provides the consumer with a full refund of all payments made, except for a nominal processing fee, within 30 days after notification of cancellation of the plan under (4) [(5)] of this subsection;
Enrolled SB 132 -36- * Sec.
73.
AS 21.36.520(a) is amended to read:
(a) An insurer providing a health care insurance policy or its pharmacy benefits manager may not (1) interfere with a covered person's right to choose a pharmacy or provider;
(2) interfere with a covered person's right of access to a cnliician- administered drug;
(3) interfere with the right of a pharmacy or pharmacist torticipate as a network pharmacy;
(4) reimburse a pharmacy or pharmacist an amount less than the amount the pharmacy benefits manager reimburses an affiliate for providing the same pharmacy services, calculated on a per-unit basis using the same generic product identifier or generic code number;
(5) impose a reduction in reimbursement for pharmacy services because of the person's choice among pharmacies that have agreed to participate in the plan according to the terms offered by the insurer or its pharmacy benefits manager;
(6) use a covered person's pharmacy services data collected under the provision of claims processing services for the purpose of soliciting, marketing, or referring the person to an affiliate of the pharmacy benefits manager;
(7) prohibit or limit a pharmacy from mailing, shipping, or delivering drugs to a patient as an ancillary service;
however, the insurer or its pharmacy benefits manager (A) is not required to reimburse a delivery fee charged by a pharmacy unless the fee is specified in the contract between the pharmacy benefits manager and the pharmacy;
(B) may not require a patient signature as proof of delivery of a mailed or shipped drug if the pharmacy (i) maintains a mailing or shipping log signed by a representative of the pharmacy or keeps a record of each notification of delivery provided by the United States mail or a package delivery service;
and -37- Enrolled SB 132 (ii) is responsible for the cost of mailing, shipping, or delivering a replacement for a drug that was mailed or shipped but not received by the covered person;
(8) prohibit or limit a network pharmacy from informing an insured person of the difference between the out-of-pocket cost to the covered person to purchase a drug, medical device, or supply using the covered person's pharmacy benefits and the pharmacy's usual and customary charge for the drug, medical device, or supply;
(9) conduct or participate in spread pricing in the state;
(10) assess, charge, or collect a form of remuneration that passes from a pharmacy or a pharmacist in a pharmacy network to the pharmacy benefits manager, including claim processing fees, performance-based fees, network participation fees, or accreditation fees;
(11) reverse and resubmit the claim of a pharmacy more than 90 days after the date the claim was first adjudicated, and may not reverse and resubmit the claim of a pharmacy unless the insurer or pharmacy benefits manager (A) provides prior written notification to the pharmacy;
(B) has just cause;
(C) first attempts to reconcile the claim with the pharmacy;
and (D) provides to the pharmacy, at the time of the reversal and resubmittal, a written description that includes details of and justification for the reversal and resubmittal;
(12) prohibit or limit a pharmacy from collecting a fee from a covered person for a service or product not covered by the covered person's health care insurance policy.
42.
74.
(3) cancel an existing policy of insurance;
Enrolled SB 132 -38- (3) cancel an existing policy of insurance;
(c) In this section, "elected official" means a member of the legislature, the governor, the lieutenant governor, a member of the state's congressional delegation, a constitutional convention delegate, a borough or city mayor, or a member of a borough or city assembly, council, or school board.
(c) In this section, "elected official" means a member of the legislature, the governor, the lieutenant governor, a member of the state's congressional delegation, a constitutional convention delegate, a borough or city mayor, a member of a borough or city assembly, council, or school board, or a member of a regional school board for a regional educational attendance area.
43.
75.
(d) In addition to an order issued under (c) of this section, the director may, after a hearing, order restitution, assess a penalty of not more than $2,500 for each violation or $25,000 for engaging in a general business practice in violation of this SB 132 -24- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G chapter.
(d) In addition to an order issued under (c) of this section, the director may, after a hearing, order restitution, assess a penalty of not more than $2,500 for each violation or $25,000 for engaging in a general business practice in violation of this chapter.
44.
76.
45.
77.
46.
78.
AS 21.42.377(c) is amended to read:
AS 21.42.375(e) is amended to read:
(c) Coverage provided under this section applies to a covered individual who is (1) at least 45 [50] years of age;
-39- Enrolled SB 132 (e) Except as necessary to qualify a plan as a high deductible health plan eligible for a health savings account tax deduction under 26 U.S.C.
or (2) less than 45 [50] years of age and at high risk for colorectal cancer.
223 (Internal Revenue Code), a health care insurer that offers, issues, delivers, or renews a health care insurance plan in the individual or group market in the state that provides coverage for mammography screening, diagnostic breast examinations, and supplemental breast examinations may not impose cost sharing, a deductible, coinsurance, a copayment obligation, or another similar out-of-pocket expense on an insured for coverage of a low-dose mammography screening, diagnostic breast examination, [OR] supplemental breast examination, biopsy, or consultation.
47.
79.
AS 21.42.375(f) is amended by adding new paragraphs to read:
(4) "biopsy" means a medical procedure involving the removal of tissue to determine the presence of cancer cells;
(5) "consultation" means a medical consultation with a health care provider to discuss the results of a diagnostic breast examination and whether further biopsies or other diagnostic procedures are needed.
* Sec.
80.
AS 21.42.377(a) is amended to read:
(a) Except for a fraternal benefit society, a health care insurer that offers, issues for delivery, delivers, or renews in this state a health care insurance plan shall provide coverage for the costs of colorectal cancer screening examinations and laboratory tests under the schedule described in (b) of this section.
[THE COVERAGE REQUIRED BY THIS SECTION IS SUBJECT TO STANDARD POLICY PROVISIONS APPLICABLE TO OTHER BENEFITS, INCLUDING DEDUCTIBLE OR COPAYMENT PROVISIONS.] * Sec.
81.
AS 21.42.377(b) is amended to read:
(b) The minimum coverage required under (a) of this section for colorectal cancer screening includes coverage for colorectal cancer examinations and laboratory tests as recommended by the most recent [SPECIFIED IN] American Cancer Society guidelines for colorectal cancer screening of [ASYMPTOMATIC] individuals considered at average risk for colorectal cancer.
Coverage shall be provided for all colorectal screening examinations and tests, including a colonoscopy performed as a result of a positive result on a non-colonoscopy preventive screening test, that are Enrolled SB 132 -40- administered at a frequency identified in the most recent American Cancer Society guidelines for colorectal cancer.
* Sec.
82.
AS 21.42.377(e) is amended to read:
(e) For individuals considered at (1) average risk for colorectal cancer, coverage or benefits shall be provided for the choice of screening, so long as it is conducted in accordance with the specified frequency;
coverage required by this paragraph is not subject to cost sharing, including deductible, coinsurance, or copayment provisions;
(2) [.
FOR INDIVIDUALS CONSIDERED AT] high risk for colorectal cancer, screening shall be provided at a frequency determined necessary by a health care provider.
* Sec.
83.
SB0132A -25- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G * Sec.
* Sec.
48.
84.
If the director finds the information to be satisfactory, the director shall [, AND THE DIRECTOR MUST AFFIRMATIVELY] approve [OF] the [GROUP BEFORE AN] insurer to [MAY] issue a group life policy to a group under (a) or (e) of this section.
If the director finds the information to be satisfactory, the director shall [, AND THE DIRECTOR MUST AFFIRMATIVELY] approve [OF] the [GROUP BEFORE AN] insurer to [MAY] issue a group life policy to a group -41- Enrolled SB 132 under (a) or (e) of this section.
49.
85.
50.
86.
51.
87.
52.
88.
(c) A licensee shall report to the director in writing any administrative action taken against the licensee by a governmental agency [OF ANOTHER STATE OR BY SB 132 -26- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G A GOVERNMENTAL AGENCY OF ANOTHER JURISDICTION] within 30 days after the final disposition of the action.
(c) A licensee shall report to the director in writing any administrative action taken against the licensee by a governmental agency [OF ANOTHER STATE OR BY A GOVERNMENTAL AGENCY OF ANOTHER JURISDICTION] within 30 days after the final disposition of the action.
The licensee shall submit to the director a copy of the criminal complaint, calendaring order, and other relevant legal documents in the prosecution.
The licensee shall submit to the director a copy of the criminal complaint, calendaring order, and other Enrolled SB 132 -42- relevant legal documents in the prosecution.
53.
89.
When a property loss is subject to valuation, the valuation of the expense of labor may not be included as a component of physical depreciation and may not be subject to depreciation or betterment, except for the intrinsic labor costs that are included in the cost of manufactured materials or goods.
In a residential property policy, the valuation of the expense of labor may not be depreciated, except where offered as a stand-alone endorsement that specifically identifies the intangible items subject to depreciation.
An endorsement offered under this section must be an optional coverage and provide a proportionate reduction in premium.
54.
90.
55.
91.
SB0132A -27- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G (2) that part of the risk borne by the policy or contract owner;
(2) that part of the risk borne by the policy or contract owner;
(4) that part of a policy or contract, except for part of a policy or contract, including a rider, that provides long-term care or other health insurance benefits, to the extent that the rate of interest on which it is based, or the interest rate, crediting rate, or similar factor determined by use of an index or other external reference stated in the policy or contract employed in calculating returns or changes in value, (A) averaged over the period of four years before the date on which the member insurer becomes an impaired or insolvent insurer under this chapter, whichever occurs first, exceeds the rate of interest determined by subtracting two percentage points from the published monthly average for that same four-year period or for a lesser period if the policy or contract was issued less than four years before the member insurer becomes an impaired or insolvent insurer under this chapter, whichever occurs first;
(4) that part of a policy or contract, except for part of a policy or contract, including a rider, that provides long-term care or other health insurance benefits, to the extent that the rate of interest on which it is based, or the interest rate, -43- Enrolled SB 132 crediting rate, or similar factor determined by use of an index or other external reference stated in the policy or contract employed in calculating returns or changes in value, (A) averaged over the period of four years before the date on which the member insurer becomes an impaired or insolvent insurer under this chapter, whichever occurs first, exceeds the rate of interest determined by subtracting two percentage points from the published monthly average for that same four-year period or for a lesser period if the policy or contract was issued less than four years before the member insurer becomes an impaired or insolvent insurer under this chapter, whichever occurs first;
(6) that part of a policy or contract that provides a dividend or SB 132 -28- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G experience rating credit or voting rights, or provides that a fee or allowance be paid to a person, including the policy or contract owner, in connection with the service to or administration of the policy or contract;
(6) that part of a policy or contract that provides a dividend or experience rating credit or voting rights, or provides that a fee or allowance be paid to a person, including the policy or contract owner, in connection with the service to or administration of the policy or contract;
(8) a person who is a payee or beneficiary of a contract owner who is a resident of this state if the payee or beneficiary is provided coverage by the association of another state;
Enrolled SB 132 -44- (8) a person who is a payee or beneficiary of a contract owner who is a resident of this state if the payee or beneficiary is provided coverage by the association of another state;
or (E) a claim for penalties or consequential or incidental SB0132A -29- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G damages;
or (E) a claim for penalties or consequential or incidental damages;
(15) that part of a policy or contract to the extent the part of the policy or contract provides for interest or other changes in value to be determined by the use of an index or other external reference stated in the policy or contract, but that have not been credited to the policy or contract, or as to which the policy or contract owner's rights are subject to forfeiture, as of the date the member insurer becomes an impaired or insolvent insurer under this chapter, whichever is earlier;
-45- Enrolled SB 132 (15) that part of a policy or contract to the extent the part of the policy or contract provides for interest or other changes in value to be determined by the use of an index or other external reference stated in the policy or contract, but that have not been credited to the policy or contract, or as to which the policy or contract owner's rights are subject to forfeiture, as of the date the member insurer becomes an impaired or insolvent insurer under this chapter, whichever is earlier;
SB 132 -30- SB0132A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G * Sec.
* Sec.
56.
92.
At least one member [ONE-THIRD] of the governing body must be a consumer to represent [CONSIST OF CONSUMERS WHO ARE SUBSTANTIALLY REPRESENTATIVE OF] enrollees.
At least one-quarter [ONE-THIRD] of the governing body must consist of consumers who are substantially representative of enrollees.
57.
93.
(b) In addition to basic health care services, a health maintenance organization may provide, or arrange for, other health care services on a prepayment, fixed fee, or other financial basis.
Enrolled SB 132 -46- (b) In addition to basic health care services, a health maintenance organization may provide, or arrange for, other health care services on a prepayment, fixed fee, or other financial basis.
58.
94.
59.
95.
60.
96.
The director may apply to a federal agency for a waiver of federal law that relates to a health insurance requirement, including applying to the United States Secretary of Health and SB0132A -31- SB 132 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0415\G Human Services under 42 U.S.C.
The director may apply to a federal agency for a waiver of federal law that relates to a health insurance requirement, including applying to the United States Secretary of Health and Human Services under 42 U.S.C.
* Sec.
-47- Enrolled SB 132 * Sec.
61.
97.
62.
98.
AS 21.27.020(g), 21.27.330(a);
AS 21.27.020(g), 21.27.330(a), 21.27.630(f), 21.27.905(b);
AS 21.42.377(c);
63.
99.
40 of this Act, applies to contracts entered into on or after the effective date of this Act.
70 of this Act, applies to contracts entered into on or after the effective date of sec.
70 of this Act.
42 of this Act, applies to an insurance policy or contract issued, delivered, or renewed on or after the effective date of this Act.
74 of this Act, applies to an insurance policy or contract issued, delivered, or renewed on or after the effective date of sec.
74 of this Act.
64.
100.
This Act takes effect immediately under AS 01.10.070(c).
Sections 69 - 71 of this Act take effect immediately under AS 01.10.070(c).
SB 132 -32- SB0132A New Text Underlined [DELETED TEXT BRACKETED]
* Sec.
101.
Except as provided in sec.
100 of this Act, this Act takes effect January 1, 2026.
Enrolled SB 132 -48-
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Action History

  1. (S) EFFECTIVE DATE(S) OF LAW SEE CHAPTER

  2. (S) Signed into law 6/24 CHAPTER 17 SLA 25

  3. (S) MANIFEST ERROR(S)

  4. (S) 3:20 P.M. 6/23/25 Transmitted to Governor

  5. (S) EFFECTIVE DATE(S) SAME AS PASSAGE

  6. (S) CONCUR AM OF (H) Y20 N-

  7. (S) CONCUR MESSAGE READ AND TAKEN UP

  8. (H) VERSION: HCS CSSB 132(FIN) AM H

  9. (H) TRANSMITTED TO (S) AS AMENDED

  10. (H) EFFECTIVE DATE(S) SAME AS PASSAGE

  11. (H) PASSED Y40

  12. (H) READ THE THIRD TIME HCS CSSB 132(FIN) AM H

  13. (H) ADVANCED TO THIRD READING UC

  14. (H) AM NO 1 ADOPTED UC

  15. (H) FIN HCS ADOPTED UC

  16. (H) READ THE SECOND TIME

  17. (H) RULES TO CALENDAR 5/19/2025

  18. (H) FN2: (CED)

  19. (H) NR: BYNUM, TOMASZEWSKI, GALVIN, JOSEPHSON, SCHRAGE

  20. (H) DP: HANNAN, STAPP, JIMMIE, FOSTER

  21. (H) FIN RPT HCS(FIN) 4DP 5NR

  22. (H) Minutes (HFIN)

  23. (H) Moved HCS CSSB 132(FIN) Out of Committee -- Recessed to a Call of the Chair --

  24. (H) FINANCE at 12:00 PM ADAMS 519

  25. (H) Minutes (HFIN)

  26. (H) Heard & Held -- Recessed to a Call of the Chair --

  27. (H) FINANCE at 10:00 AM ADAMS 519

  28. (H) FIN

  29. (H) READ THE FIRST TIME - REFERRALS

  30. (S) VERSION: CSSB 132(FIN)

  31. (S) TRANSMITTED TO (H)

  32. (S) EFFECTIVE DATE(S) SAME AS PASSAGE

  33. (S) PASSED Y19 N- E1

  34. (S) READ THE THIRD TIME CSSB 132(FIN)

  35. (S) ADVANCED TO THIRD READING 5/17 CAL

  36. (S) FIN CS ADOPTED UC

  37. (S) READ THE SECOND TIME

  38. (S) RULES TO CALENDAR 5/16/2025

  39. (S) FN1: (CED)

  40. (S) DP: OLSON, STEDMAN, HOFFMAN, KAUFMAN, CRONK, MERRICK, KIEHL

  41. (S) FIN RPT CS 7DP SAME TITLE

  42. (S) Minutes (SFIN)

  43. (S) Moved CSSB 132(FIN) Out of Committee

  44. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  45. (S) Minutes (SFIN)

  46. (S) Heard & Held

  47. (S) FINANCE at 09:00 AM SENATE FINANCE 532

  48. (S) FN1: (CED)

  49. (S) NR: DUNBAR, MERRICK

  50. (S) DP: BJORKMAN, GRAY-JACKSON

  51. (S) L&C RPT CS 2DP 2NR SAME TITLE

  52. (S) Minutes (SL&C)

  53. (S) Moved CSSB 132(L&C) Out of Committee

  54. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  55. (S) Minutes (SL&C)

  56. (S) Heard & Held

  57. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  58. (S) Minutes (SL&C)

  59. (S) Heard & Held

  60. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  61. (S) Minutes (SL&C)

  62. (S) Heard & Held

  63. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  64. (S) L&C, FIN

  65. (S) READ THE FIRST TIME - REFERRALS

Sponsors

  • Senate Labor & Commerce · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 64 not signed on

Sponsors (1)

  • Senate Labor & Commerce

Co-sponsors (0)

None.

Not signed on (64)

64 members have not signed on to this bill.

Show all 64 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Shall the Senate Concur in the House Amendment(s) — to CSSB 132(FIN)? Effective Date(s)

Passed 20 Yea · 0 Nay
Party YeaNayPresentNot Voting
R 9000
D 9000
Unaffiliated 2000
Total 20000
% of votes cast 100%0%0%0%
How each member voted (20)
Member Party Vote
Shelley Hughes — Yea
Mike Shower — Yea
Bill Wielechowski D Yea
Donald Olson D Yea
Elvi Gray-Jackson D Yea
Forrest Dunbar D Yea
Jesse Kiehl D Yea
Lyman Hoffman D Yea
Löki Tobin D Yea
Matt Claman D Yea
Scott Kawasaki D Yea
Bert Stedman R Yea
Cathy Giessel R Yea
Gary Stevens R Yea
James Kaufman R Yea
Jesse Bjorkman R Yea
Kelly Merrick R Yea
Mike Cronk R Yea
Robert Myers R Yea
Robert Yundt R Yea

Official roll call →

Third Reading — Final Passage

Passed 40 Yea · 0 Nay
Party YeaNayPresentNot Voting
R 21000
Unaffiliated 1000
D 13000
N 5000
Total 40000
% of votes cast 100%0%0%0%
How each member voted (40)
Member Party Vote
Robyn Niayuq Burke — Yea
Andi Story D Yea
Andrew Gray D Yea
Andy Josephson D Yea
Ashley Carrick D Yea
Carolyn Hall D Yea
Donna Mears D Yea
Genevieve Mina D Yea
Maxine Dibert D Yea
Neal Foster D Yea
Nellie Unangiq Jimmie D Yea
Sara Hannan D Yea
Ted Eischeid D Yea
Zack Fields D Yea
Alyse Galvin N Yea
Bryce Edgmon N Yea
Calvin Schrage N Yea
Ky Holland N Yea
Rebecca Himschoot N Yea
Bill Elam R Yea
Cathy Tilton R Yea
Chuck Kopp R Yea
Dan Saddler R Yea
David Nelson R Yea
DeLena Johnson R Yea
Elexie Moore R Yea
Frank Tomaszewski R Yea
George Rauscher R Yea
Jamie Allard R Yea
Jeremy Bynum R Yea
Jubilee Underwood R Yea
Julie Coulombe R Yea
Justin Ruffridge R Yea
Kevin McCabe R Yea
Louise Stutes R Yea
Mia Costello R Yea
Mike Prax R Yea
Rebecca Schwanke R Yea
Sarah Vance R Yea
Will Stapp R Yea

Official roll call →

Third Reading - Final Passage — Effective Date(s)

Passed 19 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
R 8001
D 9000
Unaffiliated 2000
Total 19001
% of votes cast 95%0%0%5%
How each member voted (20)
Member Party Vote
Shelley Hughes — Yea
Mike Shower — Yea
Bill Wielechowski D Yea
Donald Olson D Yea
Elvi Gray-Jackson D Yea
Forrest Dunbar D Yea
Jesse Kiehl D Yea
Lyman Hoffman D Yea
Löki Tobin D Yea
Matt Claman D Yea
Scott Kawasaki D Yea
Bert Stedman R Yea
Cathy Giessel R Yea
Gary Stevens R Yea
James Kaufman R Yea
Jesse Bjorkman R Yea
Kelly Merrick R Yea
Mike Cronk R Yea
Robert Myers R Yea
Robert Yundt R Not Voting

Official roll call →

Subjects

taxation finance healthcare transportation health-insurance
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Frequently asked questions

Who sponsors SB 132?
SB 132 is sponsored by Senate Labor & Commerce.
What is the current status of SB 132?
This bill has been enacted into law. Introduced March 14, 2025. Enacted.
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