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Alaska2026Passed Legislature

SB185

Insurance Rebates and Advertising Rules

Last scannedSep 12, 2026, 4:46 AM

In one sentence

This bill lists specific situations where insurance companies can offer discounts, rewards, or free items without breaking state laws against unfair rebates.

What it does

  • Allows life insurers to pay bonuses or lower premiums using surplus money if it is fair for all policyholders and in the best interest of the insurer.
  • Permits smaller fees for customers who pay their bills directly through bank drafts, preauthorized checks, or similar plans instead of paying an agent.
  • Lets health plans offer rewards under wellness programs that promote health or prevent disease, as long as the total reward does not cost more than 20 percent of the coverage price and alternative standards are available for those unable to participate due to a health condition.
  • Allows insurers to give free products or services related to safety, risk reduction, education, or financial wellness if they relate to insurance coverage and meet specific design goals.
  • Sets a limit where value-added items cannot cost more than $250 per policy term or five percent of the total premium, whichever is higher.

Who it affects

  • Insurance companies and agents selling policies in Alaska
  • Customers who buy life, health, annuity, or group insurance
  • The director of the division of insurance

Limits and unknowns

  • The bill does not state the exact date it will become effective law.
  • Insurers must notify the director before starting new testing programs for products they are unsure about and may proceed if the director does not object within 21 days.
  • The specific dollar amount allowed for small gifts is decided by the insurance director and is not listed in this text.

Plain language

Terms to know

Rebate
A discount on a premium or an extra benefit given to some customers that is usually not allowed because it can be unfair.
Value-added product
An item or service offered for free or at a lower cost, such as safety equipment, health education tools, or financial planning services.

Official record

Sources

Validated
Official bill pageIntroduced textCurrent bill text

Official summary

INSURANCE; REBATES; ADVERTISING An Act relating to the business of insurance; relating to exceptions to prohibited rebates; relating to the powers of the director of the division of insurance; relating to prohibited practices in the advertisement of insurance; and providing for an effective date.

Official activity

Bill history

  1. (H) Scheduled but Not Heard -- Delayed to a Call of the Chair --Text
  2. (H) FINANCE at 01:30 PM ADAMS 519Text
  3. (H) Scheduled but Not Heard -- Delayed to 9:00 am --Text
  4. (H) FINANCE at 08:00 AM ADAMS 519Text
  5. (H) Scheduled but Not Heard -- Recessed to a Call of the Chair --Text
  6. (H) FINANCE at 06:00 PM ADAMS 519Text
  7. (H) -- Public Testimony -- -- Delayed to a Call of the Chair --Text
  8. (H) FINANCE at 01:30 PM ADAMS 519Text
  9. (H) -- Public Testimony -- -- Delayed to a Call of the Chair --Text
  10. (H) FINANCE at 09:00 AM ADAMS 519Text
  11. (H) REFERRED TO FINANCE2344
  12. (H) FIN REFERRAL ADDED AFTER L&C2344
  13. (H) FN3: (CED)2304
  14. (H) NR: CARRICK, SADDLER, D.NELSON2304
  15. (H) DP: FRIER, HALL, FIELDS2304
  16. (H) PENDING TITLE CHANGE HCR2304
  17. (H) L&C RPT HCS(L&C) NEW TITLE 3DP 3NR2304
  18. (H) Moved HCS CSSB 185(L&C) Out of CommitteeText
  19. (H) LABOR & COMMERCE at 03:15 PM BARNES 124Text
  20. (H) Heard & HeldText