00                            SENATE BILL NO. 208                                                                         
01 "An Act relating to contractors; and relating to insurance."                                                            
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. AS 08.18.101(a) is amended to read:                                                                   
04            (a)  Each applicant, at the time of applying for registration or upon renewal of                             
05       registration, shall file with the commissioner satisfactory evidence that the applicant                           
06       has in effect                                                                                                     
07 (1)  to the extent required under AS 23.30, workers' compensation                                                       
08 insurance that is purchased from a private insurer who is admitted to do business in the                                
09 state and that shows coverage in this state, appropriate employee classifications, and                                  
10       rates applicable in this state, or a valid workers' compensation self-insurance                                   
11       certificate issued by the Alaska Workers' Compensation Board; and                                                 
12 (2)  public liability and property damage insurance covering the                                                        
13 applicant's contracting operations in this state in the sum of not less than $100,000                               
14 [$20,000] for damage to property, $50,000 for injury, including death, to any one                                       
15 person, and $100,000 for injury, including death, to more than one person; this                                         

01       requirement does not apply to an applicant whose contracting operations are for work                              
02       on projects where each project has an aggregate contract price, including all labor,                              
03       materials, and other items of $5,000 [$2,500] or less.                                                        
04    * Sec. 2. AS 08.18.101 is amended by adding new subsections to read:                                               
05            (c)  A contractor shall give written notice to each client of the contractor that                            
06       accurately describes the levels and limits of the contractor's insurance coverage under                           
07       (a)(2) of this section.                                                                                           
08            (d)  A person having a claim against a contactor for grossly negligent work in                               
09       the contractor's conduct of a contracting business activity may bring a civil action                              
10       directly against a contractor's insurer if                                                                        
11                 (1)  the person has made reasonable attempts to communicate with the                                    
12       contractor about the claim; and                                                                                   
13                 (2)  the contractor has failed to                                                                       
14 (A)  acknowledge or act promptly on the person's                                                                        
15 communications about the claim, including failing to respond to telephone                                               
16 calls, electronic mail, certified mail, subpoenas, or other attempts by the person                                      
17            to contact the contractor; and                                                                               
18                      (B)  attempt in good faith to resolve the person's claim.                                          
19    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
20 read:                                                                                                                   
21       APPLICABILITY. This Act applies to a contract entered into or renewed on or after                                 
22 the effective date of this Act.