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History: Eff. 8/28/91, Register 119; am 10/21/92, Register 124; am 4/3/94, Register 129; repealed 6/11/2006, Register 178

3 AAC 25.035. Documentation

(a) A producing broker and the surplus lines broker shall retain in the insured's file an acceptable form of documentation to establish that the producing broker and the surplus lines broker have complied with AS 21.34.020 and 3 AAC 25.010(a) . An acceptable form of documentation required by this subsection includes

(1) documentation of declinations from admitted insurers;

(2) evidence that the full amount, kind, or class of insurance could not be obtained from admitted insurers;

(3) affirmation that the coverage is on the director's current surplus lines placement list under 3 AAC 25.040; or

(4) an exception from the director under AS 21.34.020 (a)(4).

(5) documentation that

(A) the broker procuring or placing the surplus lines insurance has disclosed to an exempt commercial purchaser that insurance may be available from the admitted market that may provide greater protection with more regulatory oversight; and

(B) the exempt commercial purchaser has requested in writing that the broker procure or place the insurance from a nonadmitted insurer.

(b) A declination from an insurer for a class of insurance may be cited for other insureds for no more than 180 days.

(c) To be an acceptable form of documentation under (a)(1) of this section, an oral declination must be documented in writing and include the name, business location, and phone number of the insurer, the name and position of the person contacted, the date of contact, and the reason for the declination.

(d) A producing broker shall include in the documentation required under (a) of this section a description of the kind of insurance that is adequate for the director to determine whether insurance coverage is available in the admitted market to cover the kind of insurance.

History: Eff. 6/11/2006, Register 178; am 9/4/2014, Register 211

Authority: AS 21.06.090

AS 21.27.350

AS 21.34.020

AS 21.34.060

AS 21.34.250

AS 21.36.195

Editor's note: As of Register 195 (October 2010), the regulations attorney made a technical revision under AS 44.62.125 (b)(6), to 3 AAC 25.035(a) .

3 AAC 25.040. Surplus lines placement list

(a) After a hearing held under AS 21.06.180 - 21.06.230, the director will issue an order that lists the kinds of insurance that may be placed with a nonadmitted insurer that appears on the eligible list published under AS 21.34.050 .

(b) The director will hold a hearing and issue an order at least once every 12 months.

(c) A person may request a hearing under AS 21.06.180 to add a kind of insurance to the list or to delete a kind of insurance from the list.

(d) Only those kinds of insurance for which insureds generally are unable to secure coverage from admitted insurers will be included on the surplus lines placement list.

History: Eff. 8/28/91, Register 119

Authority: AS 21.06.090

AS 21.34.020

AS 21.34.250

3 AAC 25.050. Required notice of nonrenewal and premium increase

(a) An eligible surplus lines insurer shall include in each policy an Alaska surplus lines policyholder notice regarding nonrenewal and premium increase, in a format approved by the director.

(b) A licensed surplus lines broker shall ensure that the required notice is part of each policy.

History: Eff. 8/28/91, Register 119; am 6/11/2006, Register 178; am 7/25/2008, Register 187; am 9/4/2014, Register 211

Authority: AS 21.06.090

AS 21.34.100

AS 21.34.250

3 AAC 25.060. Evidence of insurance

The prompt delivery of the evidence of insurance required by AS 21.34.100 means not later than 30 days after the date coverage is bound. Evidence of insurance includes subsequent endorsements and company audits related to a policy.

History: Eff. 8/28/91, Register 119; am 9/4/2014, Register 211; am 8/20/2016, Register 219

Authority: AS 21.06.090

AS 21.34.100

AS 21.34.250

3 AAC 25.070. Notice

(a) A nonadmitted insurer may not issue a notice of cancellation for nonpayment of premium until after the written notice requirement of AS 21.34.110 has been satisfied.

(b) The written notice requirement of AS 21.34.110 may be satisfied by the surplus lines broker providing to the producing broker a pre-printed notice that contains the information required by AS 21.34.110 , and the producing broker then providing the pre-printed notice to the insured at the time evidence of insurance is required by AS 21.34.100 .

History: Eff. 8/28/91, Register 119; am 6/11/2006, Register 178

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