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28th Legislature(2013-2014)

Bill Text 28th Legislature

00 Enrolled SB 58                                                                                                          
01 Allowing an insurer to cancel an insurance policy if property becomes entirely abandoned and                            
02 the abandonment increases the hazard insured against.                                                                   
03                           _______________                                                                               
04    * Section 1. AS 21.36.210(f) is amended to read:                                                                   
05            (f)  An insurer may not exercise its right to cancel a policy of personal                                    
06       insurance other than personal automobile insurance, except for the following reasons:                             
07                 (1)  nonpayment of premiums, including nonpayment of additional                                         
08       premiums, calculated in accordance with the current rating manual of the insurer,                                 
09       justified by a physical change in the insured property or a change in its occupancy or                            
10       use;                                                                                                              
11                 (2)  conviction of the insured of a crime having as one of its necessary                                
12       elements an act increasing a hazard insured against;                                                              
13                 (3)  discovery of fraud or material misrepresentation made by the                                       
14       insured or a representative of the insured in obtaining the insurance or by the insured                           
01       in pursuing a claim under the policy;                                                                             
02                 (4)  discovery of a grossly negligent act or omission by the insured that                               
03       substantially increases the hazards insured against; [OR]                                                         
04                 (5)  physical changes in the insured property that result in the property                               
05       becoming uninsurable; or                                                                                      
06                 (6)  entire abandonment of the property that increases a hazard                                     
07       insured against; if a policy is cancelled under this paragraph, in addition to the                            
08       notice required under AS 21.36.220, the insurer shall give notice of cancellation                             
09       of the policy to a lender on file with the insurer at the time of the cancellation; in                        
10       this paragraph, "entire abandonment" means the property is no longer occupied                                 
11       by the insured as defined by the policy and does not have contents of substantial                             
12       utility; however, property is not entirely abandoned if the insured or an agent for                           
13       the insured demonstrates that the property is being reasonably maintained and                                 
14       monitored for a condition that might cause damage to the property.                                          
15    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
16 read:                                                                                                                   
17       APPLICABILITY. AS 21.36.210(f)(6), enacted by sec. 1 of this Act, applies to                                      
18 property that becomes entirely abandoned on or after the effective date of this Act.                                    
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