Supporters tell Senate panel SB 244 would standardize travel-insurance rules and add consumer protections
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Summary
The Senate Transportation Committee heard testimony March 31 on SB 244, a bill that adopts a nationwide model for travel insurance; industry witnesses and the insurance director said it clarifies definitions, requires disclosures (including a 10'15-day free-look refund), and codifies premium-tax treatment.
The Senate Transportation Committee on March 31 heard testimony on Senate Bill 244, a proposed update to Alaska's travel-insurance statutes that backers said would standardize definitions, strengthen consumer disclosures and give the Division of Insurance clearer enforcement authority.
Conrad Jackson, staff to the Senate Labor and Commerce Committee, opened the hearing by saying the 15'0-page bill is a cleanup that will give consumers and regulators clearer rules. "It brings fairness and really puts those consumers at the head of the line," Jackson told the committee.
Duke DeHaas, vice president and deputy general counsel for Allianz Travel Insurance, said the measure adopts model language developed by the National Association of Insurance Commissioners and the National Conference of Insurance Legislators. DeHaas told senators the model is already law in more than 40 states and would introduce uniform definitions, expanded disclosures and specific sales-practice limits. "Nobody has to buy travel insurance," DeHaas said, "and the box is not already checked for you." He described model protections such as a 10'15-day free-look period for electronic purchases and limits on opt-out sales practices.
Karen Alvarado, vice president of regulatory affairs for Crum & Forster, testified in support, saying her company already follows many of the model's practices and that clearer statutory language would benefit Alaska's residents and tourism-dependent communities by improving the clarity of coverage and claims handling.
Heather Carpenter, director of the Division of Insurance, addressed fiscal and regulatory questions. Carpenter said SB 244 largely codifies current premium-tax practice; Alaska's insurance premium tax rate is 2.7%, and the bill clarifies which products are taxable. She noted some elements included in the model (for example, travel-assistance services and certain cancellation-fee waivers) are treated as non-insurance and therefore not subject to premium tax under the bill's draft language.
Committee members pressed witnesses about practical examples: whether the bill would change how optional coverage is offered during an airline purchase and how group or school policies might be treated. DeHaas and Alvarado said the bill does not eliminate point-of-sale offers but does set clear consumer protections and filing requirements that they said should increase product availability and regulatory clarity.
No vote was taken. Chair Senator Bjorkman said the committee would "set Senate Bill 244 aside for further consideration at a future meeting" and that staff, the Division of Insurance and Senator Kiel's office would continue work on potential changes.
What happens next: SB 244 remains under committee consideration pending further staff work and possible amendments; the committee did not advance the bill during the March 31 meeting.
