Section 21.34.110. Surplus lines broker's duty to notify insured.

   (a) A contract of insurance placed by a surplus lines broker under this chapter is not binding upon the insured and a premium charged is not due and payable until
        (1) the surplus lines broker has notified the insured in writing, a copy of which shall be maintained by the surplus lines broker with the records of the contract, available for examination, that the insurer with whom the surplus lines broker places the insurance does not hold a certificate of authority issued by this state and is not subject to its supervision, and, in the event of the insolvency of the surplus lines insurer, losses will not be covered under AS 21.80 (Alaska Insurance Guaranty Association Act); or
        (2) the producing broker has notified the insured and the surplus lines broker in writing, a copy of which shall be maintained by the producing broker and the surplus lines broker with the records of the contract, available for examination, that the insurer with whom the surplus lines is placed does not hold a certificate of authority issued by this state and is not subject to this state's supervision, and, in the event of the insolvency of the surplus lines insurer, losses will not be covered under AS 21.80 (Alaska Insurance Guaranty Association Act).
   (b) Nothing in this section may be construed as nullifying an agreement by an insurer to provide insurance.

Notes

Implemented As

3 AAC 25.070
3 AAC 25.120

References

3 AAC 25.070
3 AAC 25.120

History

(Sec. 21 ch 117 SLA 1984; am Sec. 129 ch 67 SLA 1992; am Sec. 53 ch 62 SLA 1995; am Sec. 34 ch 96 SLA 2004)