Division of Insurance Regulating the insurance industry to protect Alaskan consumers Lori Wing-HeierDivision Director Lori Wing-Heier was appointed Director of the Division of Insurance in February 2014. Director Wing-Heier has approximately 30 years of experience in the insurance industry, including as a broker and agent. She most recently served as Director of Risk Management at a large Alaska Native Claims Settlement Act (ANCSA) corporation where she designed and implemented a comprehensive enterprise-wide risk management program. She also served as senior vice-president at a national brokerage, working with Alaskan entities throughout the state, and as president of the Alaska Independent Insurance Agents and Brokers, Inc. Headlines 2019 Annual Report In accordance with AS 21.06.110, it gives me great pride to present the 81st annual report of the Division of Insurance. This report covers activity from calendar years 2018-2019 and fiscal year 2019, which ended on June 30, 2019. – Lori Wing-Heier, Director B20-02: (supersedes bulletin B19-05) Non-Grandfathered Plan Extended Transition B20-01: (supersedes bulletin B19-09) Eligible Surplus Lines Insurers in the state of Alaska R20-01: Surplus Lines Placement List Bulletin B19-16: Extension of 2020 Affordable Care Act Open Enrollment Bulletin B19-15: (supersedes B15-01) Changes To Exempt Commercial Purchaser Minimum Qualifying Amounts Notice: External Healthcare Review Alaska Division of Insurance Upgrades Regulatory Computer Systems Adoption Order RA19-02: Adopting Changes to Regulations of the Division of Insurance Hearing Order H19-05: Proposed Merger of Alaska National Insurance Company with and into CopperPoint Insurance Company Corporate Officer and LLC Member for Workers' Compensation Where can I find basic information related to the changes affecting the coverage status and requirements for corporate officers and LLC members? To see the full text of the bill that enacted this legislation, see House Bill 79 of the 30th Legislature. Section 18 is the applicable provision of the bill. Sections 29 and 24(b) specify the effective date and applicability, respectively. The Division of Workers' Compensation's Employer Guide includes information on the change on page 4. Bulletin 19-08, jointly promulgated by the Divisions of Insurance, Workers Compensation, and Corporations, Business & Professional Licensing provides applicable information and guidance. When is this provision of the bill effective? August 1, 2019. However, see #8 below for details on applicability. Has there been any form or rule changes filed by NCCI applicable to this change that insurers must adhere to? No. However, NCCI will be updating their Basic Manual User Guide (C-1), which is not filed or approved by the Division. For more information on that change, please contact NCCI directly. Do insurers or agents need to notify policyholders prior to the change? If so, what are the requirements for the notice? Insurers and/or agents are highly encouraged to notify affected policyholders about the law change and its potential impacts. The notice should be given prior to the policyholder's next renewal date on or after August 1, 2019 with sufficient time to give policyholders the opportunity to make any changes in ownership interest they may find beneficial. However, there are no specific requirements on the content, timing, or method of notice. Can insurers or agents do a mass mailing/notice? Yes. See #4 above. However, mass notice is not required. To the extent that policyholder-specific information is known, insurers may choose to target the notice distribution and/or include descriptions of the law's impacts as they specifically relate to that policyholder. Does a mailed notice need to be certified? Does an electronic notification need a return receipt? No and no. See #5 above. Does the August 1, 2019, effective date mean that it only applies to policies that incept or renew on or after August 1, 2019? Yes, HB 79 contains a provision (Section 24(b)) clarifying that the repealed and reenacted version of AS 23.30.240 "applies to an insurance policy or contract entered into or renewed on or after" August 1, 2019. Policies in-force on August 1, 2019 (i.e. that were in effect before August 1, 2019) remain subject to the current version of AS 23.30.240 (i.e. the version in effect prior to August 1, 2019) through the end of that policy period. If an officer is currently insured but will be exempt beginning August 1, 2019, does the insurer need to return premium effective August 1, 2019? No. See #7 above. The changes apply as policies renew on or after August 1, 2019. Accordingly, any change in status due to the revised law is not applicable until the policy's renewal date and thus there should be no need for a midterm change in the terms of the policy or the policy's premium due solely to the change to AS 23.30.240. If an officer is currently waiving coverage but will be an employee beginning August 1, 2019, does the insurer need to charge additional premium beginning August 1, 2019? No additional premium need be charged until the first renewal on or after August 1, 2019 as that is when the change in status is applicable. See #8 above. Is there a specific form required for officers who elect to "opt-in" (i.e. be brought within the coverage of the business entity's insurance policy)? If not, are there specific elements required to be collected by an insurer as evidence? No and no. Does evidence of an officer's election to opt-in need to be filed with either the Division of Insurance or Workers' Compensation? No. Does an insurer need to get a new opt-in election each policy period, or is the election valid until the insurer is given notice that the officer's election has changed? The process to opt-in is not changing under the revised law, it has simply been expanded to allow the opt-in option for executive officers who will now default to exempt. The Division of Workers' Compensation's Employer Guide says the executive officer waiver will no longer be an acceptable way to demonstrate that WC coverage is not required. What is acceptable? Entity registrations filed with the Division of Corporations, Business, & Professional Licensing can be used as evidence of ownership interest to determine whether the 10% ownership threshold is met. If that ownership interest threshold is not met, the officer is required to be covered; thus there is no "acceptable way" to demonstrate that coverage is not required. Contact either the Division of Workers' Compensation or Corporations, Business, & Professional Licensing for further information on this topic. Consumers Learn about your insurance rights and how to file a complaint. Explore rates and coverage options for your auto, health, home, and life insurance. Use other consumer tools to enroll in health care, research a company or agent, take a home inventory, and more! Producers Get licensed or renew your license. Verify your compliance and continuing education requirements. Print and search licenses, add lines of authority, and other online tools. Insurers Search for companies and admissions. File amendments, annual filings, and taxes. Surplus Lines List of eligible surplus lines insurers and placement lists, applications and eligibility continuation instructions. 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