17 AAC 45.425 - Insurance for leases, permits, and concessions
(a) Except as
provided under (b) of this section, the department will not require a lessee,
permittee, or concessionaire to provide insurance coverage as a condition of
that person's lease, permit, or concession.
(b) The department will require a lessee,
permittee, or concessionaire to provide insurance coverage as a condition of
that person's lease, permit, or concession only upon a written determination by
the commissioner, or the commissioner's designee, after consultation with the
Department of Administration, division of risk management, that
(1) the activity, construction, or operation
of the lessee, permittee, or concessionaire under the lease, permit, or
concession will expose the state to a liability risk greater than the risk
typically posed by the activity, construction, or operation of lessees,
permittees, or concessionaires that are not required to obtain insurance under
this section; and
(2) it is in the
best interest of the state to require the lessee, permittee, or concessionaire
to provide insurance coverage.
(c) If the department requires a lessee,
permittee, or concessionaire to provide insurance coverage under (b) of this
section, the department will include provisions in the lease, permit, or
concession that require the lessee, permittee, or concessionaire to obtain, and
keep in force insurance coverage protecting both the state and the lessee,
permittee, or concessionaire, including
(1) a
requirement that the insurer name the state as an additional insured or, if an
additional insured provision is inapplicable, include a waiver of subrogation
endorsement in favor of the state;
(2) a requirement that the insurer notify the
department at least 30 days before any termination, cancellation, or material
change in the insurance coverage;
(3) a provision requiring the lessee,
permittee, or concessionaire to submit to the department a copy of each
required insurance policy, or a certification that each required coverage is in
effect, together with evidence that the premiums for each coverage have been
paid; and
(4) a statement
identifying any insurance coverage and the lowest acceptable coverage limits
the department requires for the activity allowed in the lease, permit or
concession based on the table set out in this paragraph; if the lease, permit
or concession allows more than one activity that requires the same kind of
coverage, the coverage limit must be the highest coverage limit applicable to
an activity allowed by that lease, permit, or concession:
(d) Notwithstanding the standards set out in
(c) of this section, the department may, after consultation with the Department
of Administration, division of risk management, require the lessee, permittee,
or concessionaire to provide insurance coverage and limits different from those
listed in (c) of this section; the department may establish different limits
only upon a written finding that
(1) higher
limits or coverage are necessary because
(A)
the activity, construction, or operation of the lessee, permittee, or
concessionaire under the lease, permit, or concession will expose the state to
a liability risk greater than the risk typically posed by the activity,
construction, or operation of other lessees, permittees, or concessionaires
required to provide insurance under this section; and
(B) it is in the best interest of the state
to require the lessee, permittee, or concessionaire to provide greater
insurance coverage or higher coverage limits; or
(2) lower limits or coverage are justified
because
(A) the activity, construction, or
operation of the lessee, permittee, or concessionaire under the lease, permit,
or concession will expose the state to a liability risk materially lower than
the average risk posed by the activity, construction, or operation of other
lessees, permittees, or concessionaires to which (c) of this section applies;
and
(B) it is in the best interest
of the state to allow the lessee, permittee, or concessionaire to provide
insurance with reduced coverage or limits.
(e) If a lessee, permittee, or concessionaire
obtains insurance with higher limits or greater coverage than any required by
the department under this section, nothing in this section or in the lease,
permit, or concession may be interpreted to limit the benefit and protection of
the state as additional insured to less than the full higher limits and greater
coverages.
(f) Neither the
existence nor the absence of a requirement for insurance coverage under this
section, nor compliance or noncompliance with such a requirement, relieves the
lessee, permittee, or concessionaire of any obligation under the lease, permit,
or concession, including the obligation of the lessee, permittee, or
concessionaire to indemnify the state.
(g) In this section, unless the context
otherwise requires,
(1) "aircraft and aviation
liability" means insurance that protects the insured from loss due to claims
arising from ownership, maintenance, or use of aircraft;
(2) "airport liability" means insurance that
protects the insured from loss due to claims arising from activity on land or a
building of an airport, including activities on the leased premises of an
airport tenant, including operation of mobile equipment;
(3) "liquor legal liability" means insurance
that protects the insured from loss due to claims arising from risks relating
to the distribution, sale, or service of alcohol by or on behalf of the
insured;
(4) "products and
completed operations liability" means insurance that protects the insured from
loss due to claims arising from the sale of goods or products sold,
manufactured, handled, or distributed by the insured, or service operations
that have been completed by the insured.
Notes
Authority:AS 02.15.020
AS 02.15.060
AS 02.15.090
AS 02.15.200
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.