1. (a) A property or casualty policy that requires reimbursement by an insured of losses or loss expenses paid by the insurer may not, unless specified in the policy,

   1. (1) consider the failure of the insured to make a reimbursement as a nonpayment of premium for the purposes of AS 21.36.210 - 21.36.310; or
   2. (2) require the insured to prefund amounts the insured agreed to pay under the policy as reimbursements, or to post collateral to secure the insured's obligation to reimburse the insurer.
2. (b) The failure of an insured to meet prefunding or collateral requirements specified in a policy may not be considered nonpayment of premium.
3. (c) In this section, "collateral" means cash, a letter of credit, a surety bond, or other form of security that an insured posts with an insurer to secure the insured's obligations to reimburse the insurer.

(Eff. 12/20/2020, Register 236)

Authority: AS 21.06.090, AS 21.36.210, AS 21.42.075