1. (a) Both specific and aggregate excess insurance with policy limits and retention amounts acceptable to the board must be provided by each self-insurer unless the board waives this requirement.

2. (b) An acceptable excess insurance policy must

   1. (1) be written by a casualty insurance company or reinsurance company authorized to transact that business in this state; the insurance company must be rated A- or higher with a stable or positive outlook by a nationally recognized statistical rating organization approved by the board;
   2. (2) not be cancelable. except upon at least 60 days' advance written notice by registered or certified mail to the self-insurer and the division; and
   3. (3) not contain any type of commutation clause, unless it provides that any commutation does not relieve the underwriter of any liability unknown at the time of the commutation.
3. (c) If an existing excess policy submitted in compliance with this chapter is cancelled or not renewed, the self-insurer shall file proof of replacement excess coverage within the 60-day notice period required by (b)(2) of this section.

(Eff. 11/20/83, Register 88; am 6/20/2010, Register 194)

Authority: AS 23.30.005, AS 23.30.075, AS 23.30.090, AS 44.31.020