Sec. 21.36.475. Limitation on owner controlled and contractor controlled insurance programs.

414 words·~2 min read·/ak/title-21/chapter-36/21-36-475

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(a)An owner controlled insurance program or a contractor controlled insurance program is subject to both AS 21.39 and AS 21.42 , must be approved by the director, and shall be allowed only for a major construction project. Owner controlled and contractor controlled insurance programs are limited to property insurance as defined in AS 21.12.060 and casualty insurance as defined in AS 21.12.070 .

(b)In this section, an owner controlled or contractor controlled insured program does not include

(1)builder's risk or course of construction insurance;

(2)insurance relating to the transportation of cargo or other property;

(3)insurance covering one or more affiliates, subsidiaries, partners, or joint venture partners of a person; or

(4)insurance policies endorsed to name one or more persons as additional insureds.

(c)In this section,

(1)“contractor” means a person who meets the definition of “contractor” in AS 08.18.171 and who undertakes the performance of a construction project for a project owner, its agent, or its representative;

(2)“contractor controlled insurance program” means an insurance program where one or more insurance policies are procured on behalf of a contractor, its agent, or its representative, by its insurance producer, as defined in AS 21.27.990 , for the purpose of insuring the contractor and one or more of the following:

(A)the project owner;

(B)a subcontractor;

(C)an architect;

(D)an engineer; or

(E)a person performing professional services;

(3)“major construction project” means the process of constructing a structure, building, facility, or roadway or major renovation of more than 50 percent of an existing structure, building, facility, or roadway having a contract cost of more than $50,000,000 of a definite term at a geographically defined project site;

(4)“owner controlled insurance program” means an insurance program where one or more insurance policies are procured on behalf of a project owner, its agent, or its representative, by its insurance producer, as defined in AS 21.27.990 , for the purpose of insuring the project owner and one or more of the following:

(A)the contractor;

(B)a subcontractor;

(C)an architect;

(D)an engineer; or

(E)a person performing professional services;

(5)“project owner” means a person who, in the course of the person's business, engages the service of a contractor for the purpose of working on a construction project;

(6)“subcontractor” means a person to whom a contractor sublets all or part of a contractor's initial undertaking.