Alaska § 21.36.475 - Limitation on owner controlled and contractor controlled insurance programs.

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

 (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 or a major multi-owner residential 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 insurance program does not include        (1) builder's risk or course of construction insurance;

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

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

 (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) “major multi-owner residential construction project” means a construction project for condominiums, townhouses, cooperative housing developments, or other residential housing involving at least 40 units and three or more property owners with a total cost of $20,000,000 or more;

 (5) “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;

 (6) “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.

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