3 AAC 29.900 - Reimbursement of losses and nonpayment of premium
(a) A property or
casualty policy that requires reimbursement by an insured of losses or loss
expenses paid by the insurer may not, unless specified in the policy,
(1) consider the failure of the insured to
make a reimbursement as a nonpayment ofpremium for the purposes of
AS
21.36.210 -
21.36.310; or
(2) require the insured to prefund amounts
the insured agreed to pay under the policy as reimbursements, or to post
collateral to secure the insured's obligation to reimburse the
insurer.
(b) The failure
of an insured to meet prefunding or collateral requirements specified in a
policy may not be considered nonpayment of premium.
(c) In this section, "collateral" means cash,
a letter of credit, a surety bond, or other form of security that an insured
posts with an insurer to secure the insured's obligations to reimburse the
insurer.
Notes
Authority:AS 21.06.090
AS 21.36.210
AS 21.42.075
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