3 AAC 31.060 is amended to establish fees for air ambulance service provider (provider) biennial registration applications and renewal biennial registration applications.

New sections are proposed as follows:

3 AAC 31.600 establishes the term for initial biennial registration periods and makes clear providers are responsible for knowing when their registration period ends and when a renewal registration application is required.

3 AAC 31.610 identifies the information required in registration applications including identifying information, biographical statements and exceptions to disclosure, plan of operation, plan demonstrating actions the applicant would take if it ceased operations, membership agreements, membership fees and ratios, agreements directly or indirectly associated with membership agreements, certification under AS 18.08.082(a)(3), and criteria utilized in determining membership eligibility. This provision also requires updating of information and describes what information is confidential.

3 AAC 31.620 requires providers to post a bond with the director conditioned upon the provider's faithful fulfillment of its membership agreements. After two years of provider operations in the state, the director will surrender the bond. This provision does not apply to providers who provide satisfactory evidence of having been in operation in this state for at least two years.

3 AAC 31.630 provides a grace period in which a provider can continue to transact new business after its registration lapses. The provision also sets forth causes for which the director after a hearing may suspend or revoke a registration. The provision also includes how the period of time for a suspension is determined and provider requirements during the suspension.

3 AAC 31.640 establishes trade practices including, if applicable, how medical necessity is to be determined, protection of consumer financial and health information from disclosure, required and prohibited provisions in membership agreements, a description of what constitutes acceptable insurance coverage if eligibility for a membership agreement is contingent upon the applicant's insurance coverage, compliance with state unfair claims settlement act or practices regulations, and a requirement that membership fees or other consideration be reasonable and in relation to the benefit provided under a membership agreement. The fee must in aggregate reasonably approximate the amounts that members would expect to pay in the absence of the membership agreement over the period of time covered by the membership agreement.

3 AAC 31.650 requires membership agreements to be filed and approved by the director before issued or renewed; to be in compliance with 3 AAC 31.205, 3 AAC 31.215(c) – 3 AAC 31.215((h), and 3 AAC 31.250. The provision also provides a membership agreement may be delivered consistent with 3 AAC 31.250.

3 AAC 31.690 defines "membership agreement" and "provider" the same way those terms are defined in AS 21.61.110.

3 AAC 31.900 is amended to define "department" to mean the Department of Commerce, Community, and Economic Development.

You may comment on the proposed regulation changes, including the potential costs to private persons of complying with the proposed action, by submitting written comments to the Division of Insurance; Attention: Marty Hester, P.O. Box 110805, Juneau, AK 99811-0805 or by e-mail to martin.hester@alaska.gov; or by fax to (907) 465-3422. Comments may also be submitted through the Alaska Online Public Notice System at http://aws.state.ak.us/OnlinePublicNotices. All comments must be received no later than 5:00 p.m., Alaska Daylight Time, May 1, 2015.

Oral or written comments also may be submitted at a hearing to be held on Friday, April 17, 2015 in conference room B which is on the ninth floor of the State Office Building located at 333 Willoughby Ave., Juneau, Alaska. The hearing will be held from 9:00 a.m. to 10:00 a.m., ADT, and may be extended to accommodate those present before 10:00 a.m. who may not have had the opportunity to comment. If you are unable to attend the meeting in person and would like to participate by teleconference, please call 1-800-315-6338 and enter the access code 42070 followed by # (pound sign).

You may submit written questions relevant to the proposed action to Chip Wagoner, Regulations Specialist II, Division of Insurance, P.O. Box 110805, Juneau, AK 99811-0805 or by e-mail to chip.wagoner@alaska.gov.  The questions must be received at least 10 days before the end of the public comment period. The division will aggregate its response to substantially similar questions and make the questions and response available on the division's website at http://commerce.alaska.gov/dnn/ins/HearingsMeetingsandNotices.aspx or on the Alaska Online Public Notice System. The division may, but is not required to, answer written questions received after the 10-day cut-off date and before the end of the comment period.

If you are a person with a disability who needs a special accommodation in order to participate in the process, please contact Tonya Essary at (907) 465-2597 or TDD (907) 465-5437 no later than April 14, 2015 to ensure that any necessary accommodations can be provided.

For a copy of the proposed regulation changes, please go to http://commerce.alaska.gov/dnn/ins/HearingsMeetingsandNotices.aspx, or contact the Division of Insurance at (907) 269-7900 in Anchorage or (907) 465-2515 in Juneau.

After the public comment period ends, the Division of Insurance will either adopt these or other provisions dealing with the same subject, without further notice, or decide to take no action on them. The language of the final regulations may be different from that of the proposed regulations. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written comments and questions received are public records and are subject to public inspection.

Statutory Authority: AS 21.06.060; AS 21.06.090; AS 21.36.355; AS 21.61.105; AS 21.61.106; AS 21.61.109
Statutes Being Implemented, Interpreted, or Made Specific: AS 21.61.100 – AS 21.61.110.
Fiscal Information: This action is not expected to require an increased appropriation.

DATE: March 13, 2015
Lori Wing-Heier
Director of Insurance