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.