00 Enrolled SB 58                                                                                                          
01 Allowing an insurer to cancel an insurance policy if property becomes entirely abandoned and                            
02 the abandonment increases the hazard insured against.                                                                   
03                           _______________                                                                               
04    * Section 1. AS 21.36.210(f) is amended to read:                                                                   
05            (f)  An insurer may not exercise its right to cancel a policy of personal                                    
06       insurance other than personal automobile insurance, except for the following reasons:                             
07                 (1)  nonpayment of premiums, including nonpayment of additional                                         
08       premiums, calculated in accordance with the current rating manual of the insurer,                                 
09       justified by a physical change in the insured property or a change in its occupancy or                            
10       use;                                                                                                              
11                 (2)  conviction of the insured of a crime having as one of its necessary                                
12       elements an act increasing a hazard insured against;                                                              
13                 (3)  discovery of fraud or material misrepresentation made by the                                       
14       insured or a representative of the insured in obtaining the insurance or by the insured                           
01       in pursuing a claim under the policy;                                                                             
02                 (4)  discovery of a grossly negligent act or omission by the insured that                               
03       substantially increases the hazards insured against; [OR]                                                         
04                 (5)  physical changes in the insured property that result in the property                               
05       becoming uninsurable; or                                                                                      
06                 (6)  entire abandonment of the property that increases a hazard                                     
07       insured against; if a policy is cancelled under this paragraph, in addition to the                            
08       notice required under AS 21.36.220, the insurer shall give notice of cancellation                             
09       of the policy to a lender on file with the insurer at the time of the cancellation; in                        
10       this paragraph, "entire abandonment" means the property is no longer occupied                                 
11       by the insured as defined by the policy and does not have contents of substantial                             
12       utility; however, property is not entirely abandoned if the insured or an agent for                           
13       the insured demonstrates that the property is being reasonably maintained and                                 
14       monitored for a condition that might cause damage to the property.                                          
15    * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to                          
16 read:                                                                                                                   
17       APPLICABILITY. AS 21.36.210(f)(6), enacted by sec. 1 of this Act, applies to                                      
18 property that becomes entirely abandoned on or after the effective date of this Act.