OMNIBUS INSURANCE BILL
Sponsored By: SENATE LABOR & COMMERCE
Signed by Governor
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Bill Overview
Analyzed Economic Effects
32 provisions identified: 12 benefits, 12 costs, 8 mixed.
Lower costs for colorectal cancer screening
Beginning January 1, 2026, affected health plans cover colorectal screening at frequencies in the latest American Cancer Society guidelines. Average-risk people get a choice of screening without deductibles, copayments, or coinsurance. Coverage includes a colonoscopy after a positive non-colonoscopy screening test. For high-risk people, the provider sets the needed screening frequency. Cost-sharing exceptions apply only to preserve high-deductible plan and health savings account qualification.
Lower outside-network costs for HMO patients
Beginning January 1, 2026, HMOs cover outside-network emergency screening and stabilization at their regular in-network cost-sharing level. After stabilization, the HMO may require a hospitalized patient to transfer. The same cost-sharing protection covers medically necessary outside-network care when an HMO provider refers the patient and states it is required. The HMO may deny that referral when an in-network provider is available.
More options for hard-to-find disability coverage
Beginning January 1, 2026, Alaska allows approved disability and health coverage through insurers not authorized in the state. The insurance director must find the placement serves the public interest, and surplus-lines rules apply. Disability coverage must be excess coverage or for someone unable to obtain it from any authorized insurer. This route cannot be used for a lower premium or competitive advantage. Multiple employer welfare arrangements cannot use it.
Stronger insurer cooperation with Alaska Medicaid
Beginning January 1, 2026, insurers and pharmacy benefits managers must share coverage information and honor Alaska medical assistance recovery rights. They must answer Department of Health inquiries within 60 days. They cannot deny qualifying department claims solely for missing prior approval or specified timing and form issues. The department must submit claims within three years after care. Enforcement must begin within six years after the department submits the claim.
Homeowners get labor claim payment protections
Beginning January 1, 2026, residential property policies generally cannot reduce the value of labor expenses because of depreciation. Insurers can offer an optional, separate policy add-on allowing depreciation of listed intangible items. That add-on must provide a proportionate premium reduction. Choosing it trades some claim-payment protection for lower premiums.
Policyholders get longer nonrenewal notice
Beginning January 1, 2026, this rule applies when a policy reserves the insurer’s right to refuse renewal. The insurer must deliver or mail written notice at least 45 days before the premium due date, up from 30. Affected policyholders get more time to find replacement coverage.
Clearer coverage exception instructions for patients
Beginning January 1, 2026, insurers using network-based coverage levels and reviewing care must explain how to request benefit-level exceptions. These instructions must appear on prior authorization request forms. When approving care, insurers must state whether claims will be handled at the network or non-network level. If a separate exception application is needed, insurers must explain how to apply.
Longer prosecution window for life-insurance offenses
Beginning January 1, 2026, life-insurance offense prosecutions can begin within one year after an eligible person discovers the offense. This can apply after the ordinary deadline expires, but extends that deadline by no more than 20 years. Discovery must be by the harmed party, a legal representative, or someone legally required to report the offense. A person relying on the reporting-duty rule cannot be involved in the offense.
State reviews vehicle service contracts first
Beginning January 1, 2026, providers must file vehicle service contracts with Alaska’s insurance division and obtain approval before issuing them. Changes to approved contracts also need filing and approval before use. The rule covers vehicles subject to Alaska registration.
Longer filing time for overseas insurers
Beginning January 1, 2026, covered overseas insurers have nine months after a reporting period to file financial statements, up from six. This applies to insurers based outside U.S. states and territories and absent from the national alien-insurer quarterly list. They must be seeking to provide Alaska coverage. Statements require insurer certification and home-regulator approval, or certification by an accounting or auditing firm licensed in the insurer's home jurisdiction.
More insurance options for public pools
Beginning January 1, 2026, joint insurance arrangements can buy property and liability coverage from insurers Alaska surplus-lines brokers may use. Municipal and school district arrangements can also buy excess or catastrophic coverage from national association risk-sharing pools. Those pools must meet the specified nonadmitted-insurer qualifications and capital and policyholder-surplus requirements. The law guarantees no savings for participating governments.
Alaska can seek health insurance waivers
Beginning January 1, 2026, Alaska's insurance director can seek federal waivers of health insurance requirements. This includes Affordable Care Act waivers for plan years beginning on or after January 1, 2017. A state plan must meet waiver requirements, follow state and federal law, and receive federal health secretary approval. This authority does not itself change household coverage.
HMOs can arrange more health services
Beginning January 1, 2026, HMOs can provide or arrange additional health care services. They can use prepayment, fixed fees, or another financial basis. The law does not name the services or guarantee new benefits or lower costs for enrollees.
Lower interest floor for protected contract amounts
Beginning January 1, 2026, the interest floor used to calculate certain minimum protected insurance contract amounts falls from 1% to 0.15%. The rate formula uses the lesser of 3% or a five-year Treasury-linked rate minus 1.25 percentage points. It rounds to the nearest 0.05 percentage point and applies the 0.15% floor. This can lower minimum protected amounts for contracts subject to Alaska’s nonforfeiture rules.
Federal health policies lose guaranty protection
Beginning January 1, 2026, Alaska expressly excludes specified federal health benefit policies from state insurance guaranty association coverage. The exclusion includes policies providing benefits under the cited Medicaid laws. It concerns the state insurance backstop, not eligibility for federal benefits or their amounts.
HMOs need not offer outside-network options
Beginning January 1, 2026, licensed Alaska HMOs are exempt from offering a non-network option at initial enrollment. People choosing these plans may have fewer coverage options for care outside the provider network.
Insurance administrators can face examination charges
Beginning January 1, 2026, third-party insurance administrators lose their exemption from insurance division examination charges. Examined administrators can be charged a reasonable rate covering staff salary, benefits, and division overhead. The director can waive actual out-of-pocket expenses or contract examiner pay when payment causes financial hardship.
Surplus-lines brokers face filing fee penalties
Beginning January 1, 2026, late surplus-lines filing fee payments cost brokers $50 monthly plus 2% of the fee due per month or partial month. The late charge is capped at $250 plus 10% of the fee due. Payment in the wrong form or manner brings a 25% penalty, with a $50 minimum and $1,000 maximum. The insurance director can assess up to $10,000 per violation and suspend or revoke licenses for failure to pay. These charges fall on brokers, not directly on households.
Group life insurers face approval rules
Beginning January 1, 2026, insurers must submit information showing that a proposed group life policy meets statutory group requirements. The insurance director must approve issuance when the information is satisfactory. Approval is not required for single-employer groups, labor union groups, or authorized multiple employer welfare arrangements.
Insurance administrators face licenses and fees
Beginning January 1, 2026, third-party insurance administrators generally need licenses and may work only within their licensed authority. They must meet qualification and experience standards, disclose business and financial information, designate a compliance officer, and meet reporting rules. Initial licenses cost $2,000, with $2,000 renewals every two years. Exemptions cover specified insurer employees, limited financial-institution functions, qualifying employer-plan service providers, and licensed independent adjusters who only investigate and adjust claims. The employee exemption requires the specified written contract and excludes the designated compliance officer. Those using specified exemptions must certify their status by February 1 each year. Insurers may work only with registered administrators and must hold an Alaska certificate of authority when required.
Insurance licensees must report disciplinary actions
Beginning January 1, 2026, insurance licensees must report government administrative actions against them to Alaska's insurance director. Reporting is no longer limited to agencies outside Alaska. Specified Financial Industry Regulatory Authority sanctions and arbitration proceedings must also be reported. Written reports, final orders, and relevant legal documents are due within 30 days after final disposition.
Stronger oversight of insurance service firms
Beginning January 1, 2026, administrator and pharmacy benefits manager licensing rules cover business in Alaska and Alaska-related matters. A third-party administrator must be licensed to use the stated exception from managing general agent licensing. The director can examine both types of firm when needed and join national insurance examinations. Firms cannot act or present themselves as licensed after expiration. Reinstatement requires continued qualification, renewal fees, and a late penalty; licenses expired for two years or more cannot be renewed.
Health plan boards need fewer consumer seats
Beginning January 1, 2026, consumers must hold at least one-quarter of a health maintenance organization’s governing seats. The former minimum was one-third. These consumers must substantially represent the plan’s enrollees. The law lowers required consumer representation without directly changing coverage or costs.
New licenses and fees for drug managers
Beginning January 1, 2026, pharmacy benefits managers need Alaska licenses and must meet trust and conduct standards. Applicants must disclose ownership, background, compliance-officer, organizational, and financial information. They pay $20,000 initially and $20,000 to renew every two years. They must report specified changes, legal actions, sanctions, and convictions within 30 days; each unlicensed business day carries a separate maximum civil penalty. These rules also cover pharmacy-owning companies that handle qualifying insurer claims or pharmacy networks.
Insurers face premium tax and reporting rules
Beginning January 1, 2026, insurers pay a 0.75% tax on eligible direct wet marine and transportation premiums, after allowed deductions. It covers property or risks resident or located in Alaska. Risk retention groups must also file the required report and pay the tax required of domestic and foreign insurers. These obligations fall on insurance entities; any household cost depends on whether they pass costs along.
Several Alaska insurance rules are repealed
Beginning January 1, 2026, the law repeals several insurance code provisions. These are AS 21.09.210(d); AS 21.27.020(g), 21.27.330(a), 21.27.630(f), and 21.27.905(b); AS 21.34.030(d); AS 21.39.020(b)(4); AS 21.42.377(c); AS 21.59.290(2); and AS 21.86.078. The supplied information does not explain the former rules, so their effects on insurers and policyholders cannot be determined.
Courts decide security for troubled insurers
Beginning January 1, 2026, courts decide whether to require 100% security from an eligible reinsurer. This applies when the insurer buying reinsurance enters rehabilitation, liquidation, or conservation. The security protects that insurer or its estate. Posting security is discretionary rather than mandatory.
Easier adjuster licensing with Alaska requirements
Beginning January 1, 2026, independent-adjuster rules cover property, casualty, and workers' compensation claims, replacing the portable-electronics definition. Alaska must license eligible out-of-state adjusters whose home states offer Alaska residents licenses on the same basis. Applicants must be licensed in good standing, submit the required application, and pay fees. Home-state licensees are exempt from two Alaska qualification requirements, no longer just for portable-electronics claims. If their home state does not license adjusters, they can name another state where they are licensed in good standing. Nonresident adjusters and firms naming Alaska as home must meet Alaska's qualification and application rules. These individual adjusters must complete at least 24 approved education hours every two years; other nonresident licensees remain exempt.
Insurers face audits with hardship relief
Beginning January 1, 2026, insurers must file the previous year's independently audited financial report by June 1. An earlier deadline requires good cause and 90 days' notice. The director may grant exemptions for financial or organizational hardship; denied applicants have 15 days to request a written hearing. Insurers using principle-based valuation must maintain governance and actuarial oversight controls. Their procedures must include a process for appropriate waivers or changes.
New home-state rules for multistate insurance
Beginning January 1, 2026, Alaska revises home-state rules for multistate and international insurance placed with nonauthorized insurers. The rules use the insured's main business location or residence, together with premium-allocation rules. For a nonaffiliated group policy, the group policyholder determines home state when it pays the full premium. Otherwise, the determination uses the named insured. The rules also address placements involving multiple states or a jurisdiction outside the United States.
Revised licensing rules for insurance professionals
Beginning January 1, 2026, covered firms can name at most one compliance officer per class of authority, replacing the per-line limit. Administrator and pharmacy benefits manager compliance officers are exempt from the specified applicant requirements. Health or sickness producer authority covers sickness, bodily injury, accidental death, and defined health insurance. It may include disability-income benefits when the producer meets applicable licensing requirements. Limited-lines insurance is confined to the statutory list; the director cannot add lines by order.
Brokers can pay marine insurance taxes
Beginning January 1, 2026, surplus-lines brokers can pay wet marine and transportation insurance taxes for insurers or insureds. Tax left unpaid after the director's default notice and payment deadline can incur late fees, interest, and penalties. This payment option does not create a separate personal tax duty beyond the applicable insurance tax rules.
Sponsors & Cosponsors
Sponsor
SENATE LABOR & COMMERCE
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
(S) EFFECTIVE DATE(S) OF LAW SEE CHAPTER
7/30/2025Senate(S) SIGNED INTO LAW 6/24 CHAPTER 17 SLA 25
7/30/2025Senate(S) MANIFEST ERROR(S)
7/30/2025Senate(S) 3:20 P.M. 6/23/25 TRANSMITTED TO GOVERNOR
7/30/2025Senate(S) EFFECTIVE DATE(S) SAME AS PASSAGE
5/19/2025Senate(S) CONCUR AM OF (H) Y20 N-
5/19/2025Senate(S) CONCUR MESSAGE READ AND TAKEN UP
5/19/2025Senate(H) VERSION: HCS CSSB 132(FIN) AM H
5/19/2025House(H) TRANSMITTED TO (S) AS AMENDED
5/19/2025House(H) EFFECTIVE DATE(S) SAME AS PASSAGE
5/19/2025House(H) PASSED Y40
5/19/2025House(H) READ THE THIRD TIME HCS CSSB 132(FIN) AM H
5/19/2025House(H) ADVANCED TO THIRD READING UC
5/19/2025House(H) AM NO 1 ADOPTED UC
5/19/2025House(H) FIN HCS ADOPTED UC
5/19/2025House(H) READ THE SECOND TIME
5/19/2025House(H) RULES TO CALENDAR 5/19/2025
5/19/2025House(H) FN2: (CED)
5/19/2025House(H) NR: BYNUM, TOMASZEWSKI, GALVIN, JOSEPHSON, SCHRAGE
5/19/2025House(H) DP: HANNAN, STAPP, JIMMIE, FOSTER
5/19/2025House(H) FIN RPT HCS(FIN) 4DP 5NR
5/19/2025House(H) Minutes (HFIN)
5/18/2025House(H) Moved HCS CSSB 132(FIN) Out of Committee -- Recessed to a Call of the Chair --
5/18/2025House(H) FINANCE at 12:00 PM ADAMS 519
5/18/2025HouseAudio/Video
5/18/2025House
Bill Text
Enrolled SB 132
5/19/2025
HCS CSSB 132(FIN)
5/19/2025
HCS CSSB 132(FIN) am H
5/19/2025
CSSB 132(FIN)
5/16/2025
CSSB 132(L&C)
4/7/2025
SB 132
3/14/2025