The Alaska Senate Labor and Commerce Committee voted to adopt two amendments and reported Senate Bill 132, the omnibus insurance bill, from committee on April 4, 2025, in Beltroom 105, Juneau.

The bill, which makes technical and conforming changes to Title 21 (Alaska's insurance statutes), was discussed briefly by staff and the Division of Insurance before members took up two proposed amendments. Conrad Jackson, staff to Senator Bjorkman and the committee, gave a brief recap of the bill. "The bill before you today, Senate Bill 132, is, the omnibus insurance bill, making technical and conforming changes to Title 21, which is Alaska's insurance statutes," Jackson said.

The first adopted amendment, G1, addresses whether insurers may depreciate labor for residential property claims. Lori Wing Hyre, director of the Division of Insurance, told the committee that amendment G1 allows depreciation of labor only when the insured residential policyholder is given a stand-alone endorsement and a clear explanation comparing costs with and without depreciation. "The new amendment ... allows for depreciation but only if it's presented on a residential property where the insured is given a stand alone endorsement to show that the labor will be depreciated and they are shown the cost difference between having your labor depreciated on rebuild or not having it depreciated on a rebuild," Wing Hyre said. The policy itself, she said, will not permit depreciation unless the consumer opts into the endorsement.

The committee also adopted amendment G2, which adds an owner-controlled or contractor-controlled insurance option for certain large multi-residential construction projects. Wing Hyre explained that the amendment defines a qualifying multi-residential construction project as having at least 50 units, at least three owners, and a total project cost of $25,000,000 or more. Senator Merrick moved both amendments and the committee adopted them.

After amendment votes, the committee moved to report SB132. A motion was made to report "Senate Bill 132 version 34-LS0415\G as amended from committee with individual recommendations and attached fiscal note." Hearing no objection, the committee reported SB132 from committee with individual recommendations and an attached fiscal note. The chair then paused the meeting briefly to finalize paperwork.

Why it matters: amendment G1 changes how labor depreciation may be presented to residential policyholders by requiring a discrete endorsement and clear disclosure. Amendment G2 changes how large multi-owner residential construction projects may be insured by adding a statutory definition and threshold for owner- or contractor-controlled insurance programs.

What remains to be decided: SB132 was reported from committee and will proceed through the Senate process; the committee action does not itself change the underlying effective dates or implementation details beyond the adopted amendments.