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Title 3 . Commerce, Community, and Economic Development
Chapter 26 . Miscellaneous
Section 520. Indemnity policy with a defense cost obligation

3 AAC 26.520. Indemnity policy with a defense cost obligation

A policy under which an insurer has neither a right nor a duty to provide a defense but agrees to indemnify an insured for the costs of defense must provide coverage to indemnify an insured for the payment of attorney fees taxed 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 with 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) an 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;

(2) a policy with 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

AS 21.36.150

AS 21.42.120

AS 21.42.130

AS 21.42.160


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Last modified 7/05/2006