(a) An owner controlled insurance program or a contractor controlled insurance program is subject to both AS 21.39 and AS 21.42, must be approved by the director, and shall be allowed only for a major construction project. Owner controlled and contractor controlled insurance programs are limited to property insurance as defined in AS 21.12.060 and casualty insurance as defined in AS 21.12.070.
(b) In this section, an owner controlled or contractor controlled insured program does not include
(1) builder's risk or course of construction insurance;
(2) insurance relating to the transportation of cargo or other property;
(3) insurance covering one or more affiliates, subsidiaries, partners, or joint venture partners of a person; or
(4) insurance policies endorsed to name one or more persons as additional insureds.
(c) In this section,
(1) “contractor” means a person who meets the definition of “contractor” in AS 08.18.171 and who undertakes the performance of a construction project for a project owner, its agent, or its representative;
(2) “contractor controlled insurance program” means an insurance program where one or more insurance policies are procured on behalf of a contractor, its agent, or its representative, by its insurance producer, as defined in AS 21.27.990, for the purpose of insuring the contractor and one or more of the following:
(A) the project owner;
(B) a subcontractor;
(C) an architect;
(D) an engineer; or
(E) a person performing professional services;
(3) “major construction project” means the process of constructing a structure, building, facility, or roadway or major renovation of more than 50 percent of an existing structure, building, facility, or roadway having a contract cost of more than $50,000,000 of a definite term at a geographically defined project site;
(4) “owner controlled insurance program” means an insurance program where one or more insurance policies are procured on behalf of a project owner, its agent, or its representative, by its insurance producer, as defined in AS 21.27.990, for the purpose of insuring the project owner and one or more of the following:
(A) the contractor;
(B) a subcontractor;
(C) an architect;
(D) an engineer; or
(E) a person performing professional services;
(5) “project owner” means a person who, in the course of the person's business, engages the service of a contractor for the purpose of working on a construction project;
(6) “subcontractor” means a person to whom a contractor sublets all or part of a contractor's initial undertaking.