HTRA-260428-1300

I'd like to call this meeting of the House Transportation Committee to order. The time is 1:02 on Tuesday, April 28th, in Room 124. Members present are Representative St. Clair, Representative McCabe, Representative Stutes, Co-Chair Eichide, and myself, Co-Chair Carrick. We have a record— or sorry, let the record reflect we have a quorum to conduct business. We we do have a record as well.

Please take time to silence cell phones for the meeting. Before we begin, I'd like to thank Jordan Nicholson from House Records and Susan Quigley from the Juneau LIO, as well as our committee aides Meredith Trainor and my staff Griffin Siqueo for helping us today. On today's agenda, we're bringing House Bill 302 on travel insurance from Representative Hall back before us for a reintroduction and invited testimony and discussion. And then we'll have a first hearing on SB 104, which is related to vehicle and boat transfer on death title from Senator Kawasaki. And I'd like to start by, um, also recognizing that Representative Mina has just joined us.

And I'd like to invite Representative Hall and her staff, Keith Bruce, to do a reintroduction on House Bill 302. And then we will just open it up for any committee discussion.

We also do have Heather Carpenter in the room from the Division of Insurance if members have questions for the Division of Insurance today. Thank you. Thank you, Co-Chair Carrick. For the record, my name is Carolyn Hall and I represent the West Anchorage neighborhoods of Turnagain, Spenard, and Sand Lake. Also known as House District 16.

With me here today is my staff, Keith Bruce, who is helping me carry this bill. Um, Co-Chair Carrick, how— I'm not sure, I know we had a very brief introduction last week. I'm not sure how far in depth you'd like me to go as far as a review of the legislation. Happy to do the will of the committee. I think we did do a pretty in-depth review last time, Representative Hall, so I guess, um, We will just open it up and see if members have questions at this time on this bill, which it's— I guess I'll ask the opening question.

Um, this bill is essentially updating based on recommendation from the National Association of Insurance Commissioners as well as the National Conference of Insurance Legislators, NAIC and NCOIL. Is that correct? And doing updates per both of those entities. Through the co-chair, Madam Co-chair, that is correct. But I guess for the purposes of records keeping, it's NCOIL, the National Council of Insurance Legislators.

But yes, this is basically updating travel insurance statutes, whereas in Alaska we have not updated them since 2013, I believe. And so this is to modernize the statutes and to better align with national norms. Okay, great. Thank you. It's my understanding too that we have one invited testifier who just joined us on Teams.

So if it's okay with the committee, I think we're going to go to that invited testifier and then we'll open it up for discussion. So at this time, I'd like to welcome Karen Alvarado, who's joining us on Teams and is the VP of Regulatory Affairs.

And Industry Relations at Crum Forster. And if you could just introduce yourself and put yourself on the record, and then if it's possible to please keep your invited testimony to 5 or so minutes. Sure. Can everyone hear me okay? Yes.

Wonderful. Uh, good afternoon, Chair and committee members. For the record, my name is Karen Alvarado, and As introduced, I am Vice President of Regulatory Affairs for Crum Foster, a subsidiary of Fairfax Holdings. My organization has been writing travel insurance for many years, is fully licensed in all 50 states, including Alaska, and we are therefore very familiar with unique intricacies of these products in the marketplace. I am also co-chair of the Law and Reg Committee for the United States Travel Insurance Association, USTIA, which is comprised of a variety of organizations all involved in the travel insurance industry.

I would like to thank Representative Hall and the members for bringing House Bill 302 before the committee today and for allowing interested parties the opportunity to provide testimony in support of the bill. I am here today in full support of the bill, which is important for travel consumers, state insurance regulators, and the industry. Travel insurance plays a critical role in protecting consumers from unforeseen events that can disrupt travel, such as medical emergencies, trip cancellations, lost luggage, or natural disasters. And as travel has become more accessible and global, the risks associated with travel have also increased. Travel insurance provides peace of mind and financial security, ensuring that travelers are not left vulnerable to significant losses.

This legislation, therefore, is essential for safeguarding the interests of Alaska's residents and visitors, given the state's unique geographic and environmental challenges. In Alaska, where travel often involves remote destinations, unpredictable weather, and limited access to immediate medical care, these protections are especially important. Legislation that ensures clear policy language, fair claims handling, and transparent pricing will empower consumers to make informed decisions and travel with with confidence. By enacting robust travel insurance laws, Alaska can set a standard for consumer rights and safety, ensuring that travelers are not left vulnerable to financial hardship due to circumstances beyond their control. This will not only benefit individual consumers but also support the state's tourism industry by fostering trust and reliability.

This crucial legislation builds upon existing regulatory frameworks and further promotes a framework that works for everyone. Regulators, consumers, and all industry players alike, promoting a clear and level playing field with minimal negative disruption while promoting uniformity throughout the states. By incorporating this regulatory framework in your state, you will ensure clarity and consistency is provided to the way travel insurance products are regulated. This legislation is good for all industry participants because going forward we will have specific requirements applicable to travel insurance with which all players will have to comply, including and especially new entrants to the growing market. As indicated earlier, the language before you today has been thoroughly vetted to ensure that the legislation creates an efficient, effective regulatory framework for travel insurance that benefits consumers, empowers the regulators, and ensures the marketplace operates fairly.

It contains model act language from both the NAIC, which is essentially identical to the model act authored by the National Council of Insurance Legislators, NCOIL. However, the language does contain some information specific to make sure that it fits within the Alaska framework. To date, I am happy to report that 42 states have enacted the model act, with Washington being the most recent just last month, and we are very hopeful that Alaska will be state number 43. In addition, several other states are contemplating enacting similar language in their states during the 2026 session as well. If enacted, this bill would amend the Insurance Code to clarify the regulatory framework for the sale of travel insurance.

It standardizes definitions, contains robust consumer protections, has a free look period for refunds, and various other important consumer disclosures. The critical components of this act were agreed upon to ensure that the proper requirements are defined that are unique to travel insurance, because we want to make certain that Alaskans are getting prompt, knowledgeable, and effective service when they need it most, often in very stressful or emergency situations when they're far from home. As someone who works in the travel industry, I have witnessed firsthand how travel insurance can make a significant difference for individuals and their families, and this bill will help ensure that all travelers in Alaska have access to the protection they need. As an industry leader, my company supports the efforts to strengthen consumer confidence in travel insurance because we believe that clear regulations benefit consumers and reputable insurers by fostering a fair, competitive marketplace. Our company already adheres to the best practices outlined in this legislation, and we are committed to working with regulators and lawmakers to ensure effective implementation.

In closing, I urge the committee to support this bill. This legislation will protect travelers, promote transparency, and uphold the integrity of the travel insurance industry. To our knowledge, there is no opposition to the bill. I thank you all for your consideration. Please let me know if you have any questions or if I can provide additional information.

Thank you so much.

Thank you, Ms. Alvarado. And at this time, we'll just open it up if members have questions for our testimony, our bill sponsor. Um, I think a lot of folks have spent some time with this bill, so I'm not seeing any questions or discussion. And, uh, thank you, Representative Hall, for bringing the bill forward, and, uh, Miss Alvarado, for your testimony. At this time, we We are setting an amendment deadline for House Bill 302— and brief-ities!

Brief-ities!

House Transportation is back on the record, and at this time I'll turn to Co-Chair Eichide for a motion. Thank you, Co-Chair Carrick. Uh, I move House Bill number 302, work order 34-LS, 1436/N, out of committee with attached FSCO notes. And individual recommendations.

And individual recommendations. And individual recommendations. Sweet. Okay. I— hearing and seeing no objection, House Bill 302 version N has been moved from committee.

We'll take a brief recess to transition to our next bill. Well,.

House Transportation is back on the record, and next before us we have Senate Bill 104, which is carried by Senator Scott Kawasaki, and his staff has joined us today, Jenna Calhoun. Um, we have heard this bill in a prior Legislative session last year when it was formerly Representative Rauscher's bill. It's substantively the same bill, but I'm going to have, um, Ms. Calhoun go through the short presentation on this, and we have a couple of invited testifiers, or at least one here, and I'm just going to ask our invited testifiers to please keep your testimony very brief. We have heard the companion bill before. I think there's generally strong support on this committee for this bill.

So we'd like to get the introduction back on the record and, and go from there. Thank you, Ms. Calhoun. For the record, Jenna Calhoun's staff to Senator Kawasaki sends his regrets that he is unable to be here, for he is on the Senate floor. So SB 104, Transfer on Death Deeds. This vehicle was created in Alaska statute when the Uniform Real Property Transfer on Death Act was passed in 2014 by the 28th Legislature, AS 13.48.020.

SP 101 says that an individual may transfer property to one or more beneficiaries effective at the transferor's death by a transfer on death deed.

And something to be noted for the committee is that a transfer on death deed is a non-testamentary vehicle, meaning it doesn't involve or create a will, and then the assets subject to a TOD deed skip the probate process. Currently, they can only be used for real property, which is land or anything that's permanently attached to it. So what SB 104 does is it extends the Transfer on Death deed to both vehicles and certain manufactured homes titled through the DMV. So what's important to note is that you cannot have more than 2 beneficiaries on a Transfer on Death deed for these vehicles, and the owner can revoke a TOD deed or change the beneficiary at any time without notice to the beneficiary. And at the— when the designated beneficiary is informed that they can now have this asset, they can disclaim the interest if they so desire.

The beneficiary of a TOD deed would also be subject to conveyances, encumbrances, assignments, contracts, liens, and other interests to which the boat or vehicle was subject to at the time of the owner's death, which any of these encumbrances would have to be brought up within 12 months of the original owner's death. Now SB 104 also does establish a procedure of how to obtain a TOD deed, which means the owner will have to fill out an application and submit a fee to the Department of Administration through the DMV and and these funds will serve— the fees will serve to fund the program. Something else that has come up during this bill's progress through the Senate is that it also updates the definition of property to include the ownership interest in a unit in a common interest community. So that is something to— there were some unforeseen consequences in 2014 and this just brings that to conform to include all different types of property. The benefits of SB 104 is it lowers the cost of probates for Alaskans.

Most Alaskans don't have too many assets to pass on to the generation, but most of them do have a car. And so by having a Transfer on Death Deeds for these vehicles, we are now clearing up the probate process for our courts. On average, it costs about $14,225 to settle an estate, and that would be skipped with these TOD Deeds. It also allows Alaskans ready access to law services and estate planning tools that they previously did not have, especially in rural Alaska. Most rural Alaskans will be able to go down to the DMV but not have access to a family estate lawyer.

It also, again, expedites the beneficiary access to boats and vehicles, enabling timely maintenance and preservation of these boats and vehicles. Sen—. Senator Kawasaki represents Fairbanks, and as we know, in Fairbanks, if you leave a car unattended for up to 6 months, and the probate process can take 6 months to 2 years, that car is not going to be as healthy as it was before the probate process. We also think of the instance of a family fishing business. It will allow the business to continue uninterrupted, whereas if a boat had to go through the probate process, that family business could be in peril.

And again, it reduces the probate caseload. And at this point in time, I do have invited testifiers, and I would also take any questions. Thank you. You guys did it quick. Thank you, Miss Calhoun.

That was definitely very quick. And before we open it up to questions, we'll go ahead and go through our, our two invited testifiers. We'll start with Abigail O'Connor, who is the Chief Legal Officer at Peak Trust. And if you could please put yourself on the record, Ms. O'Connor, and if possible, keep your invited testimony to 3 minutes or less, we would really appreciate that. Through the Chair, thank you.

This is Abigail O'Connor. I'm the Chief Legal Officer with Peak Trust Company. I'm also with Alaska Trust and Estates Professionals, and I'm a long-time I'm a longtime trust and estate lawyer in Alaska. I'm very much in favor of SB 104. I think it will provide an incredibly practical use and tool for Alaskan families when they're dealing with the death of a loved one.

I have seen many probates and helped people through many probates, and if the only asset is a vehicle, and it's a shame to have to go through the probate process for that. So this would allow them to— really benefit from saving the probate process, having immediate access to a vehicle, which provides benefit possibly to the family members who are dependent on using the vehicle. So it's all, all around, I'm very much in favor of this bill. Thank you. Thank you, Miss O'Connor.

Appreciate you calling in for invited testimony. And we'll go now to Linda Holbert in Fairbanks.

Yes. Good afternoon. This is Linda Holbert. I'm a New York Life agent. I have been an agent here in Fairbanks for in excess of 35 years.

I would like to speak to the need for this bill. It is practical. It is reasonable. It is sensible. It makes sense for most Alaskans.

As part of the planning process, it helps to avoid a placement of an asset, as is mentioned before. If somebody dies and owns a boat, a motor home, trying to transfer that, especially if there's probate involved, it's lengthy. It's very difficult, almost impossible to insure that vehicle once it's in the middle of transfer. I would like to encourage everybody, and in the interest of brevity, I will simply say that this is very important for Alaskans and consumers to be able to arrange their assets in an efficient way to keep being able to use the boats, the campers, the other vehicles that are so essential to Alaskans' way of life. Thank you for your time, and I'll be glad to entertain any questions should anyone have one.

Thank you. Thank you, Ms. Holbert. I appreciate you calling in today.

And that, I think, is all of our invited testifiers. We have a couple— we have a couple folks available if there's questions on the changes from the Senate. And other than that, I guess I would just open it up for questions if folks have any.

Hi. Hearing and seeing none, thank you, Ms. Calhoun, for your presentation today. We are going to set this bill aside today. We are going to bring it up next week and take action on it. And I really appreciate Ms. Calhoun for presenting today.

And that is all to come before the House Transportation Committee. We— our next meeting on Thursday, April 30th at 1 PM here in Room 124. And seeing no further business to come before the committee, we are adjourned at 1:26 PM.