AlaskaPrepaid legal plans would have to explain terms and allow cancellation
Providers of qualifying prepaid legal plans would explain plan terms before enrollment, keep complaint records, and let members leave without a penalty.
What it does
Before enrollment, plan providers would have to explain covered services, costs, and how to get legal help. They would also keep complaint records for at least three years.
Providers could not suggest a plan is insurance or guarantee results beyond its covered services. Members could not be charged for service after the month they ask to leave or face a penalty for leaving.
Plans meeting the bill's definition would be outside the insurance code. The member must pay in advance for specified legal services, and the organization must pay its contracted lawyer a fixed amount.
Argument forMembers could better understand what a plan covers and how to get help because providers would have to explain key terms before enrollment.
Argument againstMembers might have fewer protections from insurance regulators because these plans would be outside insurance regulation, even though providers must explain plan terms.
More detail
A person offering a qualifying prepaid legal plan would have to give members written information before enrollment and keep complaint records. These rules apply to a person offering a plan that meets the bill's definition. The written information must list covered services and major exclusions, explain costs and how to get services, identify the plan administrator and participating lawyers, say the plan is not insurance, and explain how to complain or resolve a dispute. Complaint records must be kept for at least three years and made available to the attorney general upon request. Providers would give the written information before enrollment and keep complaint records for at least three years.
A person offering a qualifying prepaid legal plan could not use certain misleading ads or charge members for canceling. These rules apply to a person offering a plan that meets the bill's definition. Ads could not imply that the plan is insurance or guarantee results beyond the services it covers. A provider could not charge for services beyond the month when a member asks to leave the plan or impose a penalty for leaving. The limit on charges applies after the month in which a member asks to leave the plan.
The bill text would exclude certain prepaid legal plans from the insurance code. The exclusion covers an arrangement between a member and an organization that meets all the listed conditions. The member must pay in advance for specified legal services for the member or a dependent. The organization must contract directly with a lawyer and pay a fixed amount agreed in advance; it cannot pay that lawyer extra for those services or expenses.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 13(S) JUD REFERRAL ADDED AFTER L&CLatest
- May 11(S) Heard & Held
- May 11(S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)
- May 4(S) REFERRED TO LABOR & COMMERCEMinor
- May 4(S) L&C
- May 4(S) READ THE FIRST TIME - REFERRALSMinor
- May 1(H) VERSION: CSHB 211(L&C)
- Vote recorded (H) PASSED Y33 N4 E3 #2375. Result: pass.Lower
- May 1(H) TRANSMITTED TO (S)Passed Senate
- May 1(H) PASSED Y33 N4 E3Passed House
- May 1(H) READ THE THIRD TIME CSHB 211(L&C)Minor
- Apr 30(H) ADVANCED TO THIRD READING 5/1 CALENDARMinor
- Apr 30(H) L&C CS ADOPTED UC
- Apr 30(H) READ THE SECOND TIMEMinor
- Apr 30(H) RULES TO CALENDAR 4/30/2026
- Apr 27(H) FN1: ZERO(CED)
- Apr 27(H) NR: SADDLER, D.NELSON
- Apr 27(H) DP: FRIER, CARRICK, HALL, FIELDS
- Apr 27(H) L&C RPT CS(L&C) NEW TITLE 4DP 2NR
- Apr 24(H) Moved CSHB 211(L&C) Out of Committee
- Apr 24(H) LABOR & COMMERCE at 03:15 PM BARNES 124
- Apr 17(H) <Bill Hearing Canceled>
- Apr 17(H) LABOR & COMMERCE at 03:15 PM BARNES 124
- Apr 15(H) Heard & Held -- Meeting Postponed from 3:15 pm 4/13/2026--
- Apr 15(H) LABOR & COMMERCE at 08:00 AM BARNES 124
- Apr 13(H) -- Public Testimony -- -- Meeting Postponed to 8:00 am 4/15/2026--
- Apr 13(H) LABOR & COMMERCE at 03:15 PM BARNES 124
- Apr 10(H) -- Public Testimony -- -- MEETING CANCELED --
- Apr 10(H) LABOR & COMMERCE at 03:15 PM BARNES 124
- Mar 30(H) Heard & Held
- Mar 30(H) LABOR & COMMERCE at 03:15 PM BARNES 124
- Mar 12(H) FN1: ZERO(CED)
- Mar 12(H) NR: VANCE
- Mar 12(H) DP: COSTELLO, MINA, EISCHEID, UNDERWOOD, GRAY
- Mar 12(H) JUD RPT CS(JUD) NEW TITLE 5DP 1NR
- Mar 11(H) Minutes (HJUD)
- Mar 11(H) Moved CSHB 211(JUD) Out of Committee -- Delayed to 5 minutes Following Session --
- Mar 11(H) JUDICIARY at 01:00 PM GRUENBERG 120
- Mar 4(H) Minutes (HJUD)
- Mar 4(H) Heard & Held
- Mar 4(H) JUDICIARY at 01:00 PM GRUENBERG 120
- 2025
- May 7(H) Minutes (HJUD)
- May 7(H) Heard & Held
- May 7(H) JUDICIARY at 01:00 PM GRUENBERG 120
- May 5(H) PRIME SPONSOR CHANGED: JIMMIE REPLACED MINA
- Apr 30(H) JUD, L&C
- Apr 30(H) READ THE FIRST TIME - REFERRALSIntroduced
Consumer Protection