Section 21.03.021. Application of title.

   (a) In addition to the exclusion contained in AS 21.03.070, this title does not apply to a life insurance or annuity company organized and operated without profit to any private shareholder or individual exclusively for the purpose of aiding and strengthening educational institutions by issuing insurance and annuity contracts only to or for the benefit of the institutions and individuals engaged in the service of these institutions; however, all policies and contracts issued by such an organization must provide for acceptance of service of process within this state.
   (b) Except as otherwise provided in this title, a person that provides coverage for the cost of medical care in this state is subject to this title unless the person shows that, while providing coverage for medical care, the person is subject to the jurisdiction of another agency of this state or of the federal government by providing the director with the appropriate certificate, license, or other document issued by the other governmental agency that permits or qualifies the person to provide coverage for medical care.
   (c) A person described under (b) of this section who is unable to show that the person is subject to the jurisdiction of another governmental agency under (b) of this section and who has not received a certificate of authority under AS 21.85
        (1) is subject to all appropriate provisions of this title regarding the conduct of the person's business; and
        (2) shall submit to an examination by the director to determine the organization and solvency of the person and to determine whether the person complies with this title.
   (d) A person that advertises, administers, sells, or transacts the coverage of medical care under (b) of this section and is required to submit to an examination by the director under (c)(2) of this section shall advise every purchaser, prospective purchaser, or covered person that the person's coverage may not be regulated under Alaska insurance law and may not be covered by the Alaska Life and Health Insurance Guaranty Association under AS 21.79.
   (e) This title does not apply to a service contract offered, issued for delivery, delivered, or renewed in this state. In this subsection, "service contract"
        (1) means a service contract or agreement for a separate or additional consideration, for a specific duration, to
             (A) maintain, service, repair, or replace tangible personal property, or to indemnify for repair, replacement, or maintenance, for an operational or structural failure due to a defect in materials or workmanship or normal wear and tear, with or without additional provision for incidental indemnity payments when service, repair, or replacement is not reasonably or commercially feasible;
             (B) repair, replace, or maintain tangible personal property damaged as a result of power surges or as a result of accidental damage from the handling of property; or
             (C) repair, replace, or maintain household consumer goods, household appliances, and household systems, including damage resulting from operational or structural failure due to a defect in materials or workmanship or normal wear and tear;
        (2) does not include
             (A) mechanical breakdown insurance;
             (B) a contract that requires an indemnity payment for each incident, and the payment exceeds the purchase price of the property serviced;
             (C) a home warranty; in this subparagraph, "home warranty" means a warranty that covers the entire home and does not include a warranty limited to a household system or appliance; or
             (D) portable electronics insurance as defined in AS 21.36.515.
   (f) If an insurer is not required to obtain a certificate of authority in this state under AS 21.09.020(5), the provisions of this title do not apply to policies or contracts issued by the insurer.
   (g) This title does not apply to a portable electronics manufacturer's warranty or extended warranty.
   (h) A motor vehicle service contract shall be governed by AS 21.61 except as expressly provided in this title.
   (i) A motor vehicle warranty, motor vehicle maintenance agreement, and motor vehicle service contract offered for sale or sold to a person other than a consumer are not insurance and do not have to comply with any provision of this title. In this subsection, "motor vehicle maintenance agreement" means a contract of limited duration that provides for regular maintenance only.
   (j) This title does not apply to the solicitation of an agreement or an agreement between a prospective recipient of ambulance, emergency, or fire protection services and a municipality or community-based nonprofit that provides ambulance, emergency, or fire protection services.
   (k) This title does not apply to a health care sharing ministry. In this subsection, "health care sharing ministry" means an organization that
        (1) is described in 26 U.S.C. 501(c)(3) and exempt from taxation under 26 U.S.C. 501(a);
        (2) is faith-based and whose participants share
             (A) a common set of ethical or religious beliefs; and
             (B) medical expenses among participants in accordance with the common set of ethical or religious beliefs;
        (3) coordinates financial sharing of medical expenses among willing participants in the organization according to criteria established by the organization;
        (4) provides assistance for the financial or medical needs of a participant through contributions from one participant to another;
        (5) provides the amounts of assistance that participants may contribute without an assumption of risk or promise to pay by the participants or the organization;
        (6) provides to all participants written monthly statements that list the total dollar amount of qualified needs submitted to the organization by participants for contribution;
        (7) provides for an annual audit by an independent certified public accountant in accordance with generally accepted accounting principles and makes the annual audit available to the public upon request; and
        (8) provides a written disclaimer on or accompanying all applications and guideline materials distributed by or on behalf of the organization that reads in substance: "Notice: The organization coordinating the sharing of medical expenses is not an insurance company, and neither its guidelines nor plan of operation is an insurance policy. Whether anyone chooses to assist you with your medical bills will be totally voluntary because no other participant will be compelled by law to contribute toward your medical bills. Participation in the organization or a subscription to any of its documents should never be considered to be insurance. Regardless of whether you receive a payment for medical expenses or whether this organization continues to operate, you are always personally responsible for the payment of your own medical bills."

Authorities

21.27.010;21.36.515

Notes

Recent Bills that will modify this

HB 159 HEALTH CARE RETAINER; INSURANCE EXEMPT
SB 18 HEALTH CARE SHARE MINISTRY NOT INSURANCE

References

AS 21.27.010 License required.
AS 21.36.515 Portable electronics insurance.

History

(Sec. 3 ch 234 SLA 1968; am Sec. 2 ch 73 SLA 2001; am Sec. 1 ch 38 SLA 2002; am Sec. 1 ch 143 SLA 2003; am Sec. 1 ch 23 SLA 2011; am Sec. 1, 2 ch 25 SLA 2013; am Sec. 1, 2 ch 78 SLA 2014; am Sec. 1 ch 84 SLA 2014; am Sec. 1 ch 46 SLA 2016)