HB 157 Summary

• Modernizes Alaska's Life and Health Insurance Guaranty Association by expanding coverage to include hospital and medical service corporation subscriber contracts and structured settlement annuities.

• Increases coverage limits for annuity benefits from $100,000 to $250,000 for governmental retirement plans and structured settlement annuities; increases long-term care insurance limits to $300,000.

• Establishes a new reinsurance assumption process allowing the association to assume reinsurer rights within 180 days of insurer liquidation and clarifies payment obligations between reinsurers and the association.

• Raises the non-pro-rata assessment cap for member insurers from $250 to $500 per year and extends the stay of proceedings against insolvent insurers from 60 to 180 days.

• Takes effect July 1, 2017, with the insurance director authorized to adopt implementing regulations.