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A policy under which an insurer has a right or duty to provide a defense for an insured must provide coverage for the payment of attorney fees taxable as costs against the insured under Alaska Rule of Civil Procedure 82 subject to the following minimum limits:
(1) as an additional amount of coverage, a policy that provides a defense in addition to the limit of liability must provide for payment of attorney fees awarded as costs against an insured under Alaska Rule of Civil Procedure 82 that is not less than the amount calculated by applying the schedule for contested cases in Alaska Rule of Civil Procedure 82(b)(1) to the limit of liability of the applicable coverage;
(2) as an additional amount of coverage, a policy that provides a defense within an applicable limit of liability less than $1,000,000 must provide for payment of attorney fees awarded as costs against an insured under Alaska Rule of Civil Procedure 82 that is not less than the greater of
(A) the amount calculated by applying the schedule for contested cases in Alaska Rule of Civil Procedure 82(b)(1) to the limit of liability of the applicable coverage; or
(B) $10,000;
(3) a policy that provides a defense within an applicable limit of liability of $1,000,000 or more may include within its limit of liability coverage for attorney fees awarded as costs against an insured under Alaska Rule of Civil Procedure 82.
History: Eff. 7/1/96, Register 138
Authority: AS 21.06.090
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Last modified 7/05/2006