Section 11 AAC 09.320 - Insurance and performance guarantees(a) An applicant for a commercial-use permit shall provide proof to the department of a current comprehensive liability insurance policy that will cover the activity to be permitted. The amount of required insurance coverage may vary depending on the applicant's activity, but must be a minimum of $300,000. The policy must be issued by a company that has a certificate of authority issued under AS 21.09.010 in force and in good standing or whose company name appears on the list of approved surplus line insurers under AS 21.34.050. The State of Alaska must be listed as an additional insured on the insurance policy.(b) Before issuance of a commercial-use permit, the department will notify the applicant of the amount of performance guarantee for each specific permitted activity. The amount of the performance guarantee shall be based on the past performance of the applicant related to the activities for which a permit is requested, the potential for damage to state resources or liability incurred by the state, and the potential cost to the state of restoration because of activities conducted under the permit. The amount of the performance guarantee may not exceed estimated potential costs or liability, but shall not be less that $1,000. The department will not issue the commercial-use permit before the department has received the required performance guarantee from the applicant.Eff. 12/13/95, Register 136Information regarding an insurance company's certificate of authority or the listing of approved surplus line insurers may be obtained by contacting the Division of Insurance, Department of Community and Economic Development, P.O. Box 110805, Juneau, Alaska, 99811.
As of Register 151 (October 1999), the regulations attorney made technical revisions under AS 44.62.125(b)(6) to reflect the name change of the Department of Commerce and Economic Development to the Department of Community and Economic Development made by ch. 58, SLA 1999 and the corresponding title change of the commissioner of commerce and economic development.
Authority:AS 41.23.410
AS 41.23.440
AS 41.23.470