Alaska Administrative Code › Title 18 - Environmental Conservation › Chapter 75 - Oil and Other Hazardous Substances Pollution Control › Article 2 - Financial Responsibility for Oil Discharges › 18 AAC 75.250 - Insurance

Current through May 31, 2024
(a) An applicant may demonstrate financial
				responsibility with insurance for the applicable amount required under
				18 AAC 75.235(a),
				in full or in part. The applicant shall provide proof of insurance issued by an
				insurer either who is authorized to sell insurance in Alaska under a
				certificate of authority issued by the director of the division of insurance of
				the Department of Commerce, Community, and Economic Development or who is an
				unauthorized insurer listed by the division of insurance as meeting the minimum
				trust or capital and surplus requirements of
				AS
				21.34.040(c). Proof of
				insurance may be provided by a binder, by a certificate of insurance acceptable
				in form to the department, or by a copy of the policy. If a binder or
				certificate of insurance is submitted to meet the requirements of this
				subsection, a copy of the underlying insurance policy must also be provided to
				the department within 90 days.
(b)
				Except for nontank vessels submitting proof of financial responsibility under
				18 AAC 75.271(a) (2) or (3), if a policy of insurance, certificate,
				or binder is submitted, it must include an endorsement with the following, or
				substantially similar language: "Any other provision of this policy
				notwithstanding:
(1) this policy insures
				against any liability the insured may incur under Alaska Statute46.04.040(i) or
				any provision cited in it as a result of an unlawful discharge of oil within or
				affecting land or waters within the territorial jurisdiction of the State of
				Alaska; however, the insurer's liability does not exceed the limits of coverage
				set out in Section (Article or Clause) of this policy, subject to any
				deductible as specifically set out in Section (Article or Clause) of this
				policy (binder, certificate);
(2)
				the insurer agrees that any final judgment against the insured for damages
				under AS
				46.04.040(i) or any
				provision cited in it resulting from an unlawful discharge of oil from or by
				any vessel or facility named in this policy may be enforced or executed in
				Alaska state courts, directly against the insurer, subject to the limits of
				coverage in this policy; the insurer will be bound by such a judgment as if the
				judgment were against the insurer; any person obtaining such a judgment against
				the insured is expressly made a third-party beneficiary of this provision; and
(3) termination or cancellation of
				this policy, insofar as it serves as proof of the insured's financial
				responsibility under
				AS
				46.04.040, shall not become effective until
				60 days after notice with the exception for nonpayment of premium which will
				require 30 days notice, in writing has been mailed, prepaid and certified, by
				the insurer to the insured and to the Alaska Department of Environmental
				Conservation at its office in Juneau, Alaska; however, this policy shall apply
				to all claims arising from a discharge occurring during the period covered by
				the policy and before the effective date of the termination or
				cancellation."