Section 8.46.045. Acceptable security deposits.

	(a)  Acceptable security deposits only include irrevocable letters of credit from financial institutions authorized to conduct business in this state under AS 06.01.010 - AS 06.40.190.  
	(b)  A security deposit under this section will be valued at the security deposit's current market value and must be readily convertible to cash.  
	(c)  Security deposits will be assigned to the commissioner, or the commissioner's successors, or assigns. The deposits will be submitted to the commissioner of revenue. Interest accruing on a negotiable security deposit will be collected and transmitted at least annually to the self-insurer, if the self-insurer is not in default under AS 23.30.170.  
	(d)  If the self-insurer defaults under AS 23.30.170 or files for bankruptcy, the commissioner will, through the use of the security deposit, obtain sufficient money to pay benefits and compensation awarded or secure a replacement policy of coverage. A security deposit will not be returned to a self-insurer until all obligations of the self-insurer have been fully discharged. After all obligations have been fully discharged, the division will return any remaining security deposit to the self-insurer.  
	(e)  A self-insurer that ceases to self-insure shall notify the division and may recover the securities deposited with the division upon posting a special release bond issued by a corporate surety in an amount equal to the total value of the securities. The special release bond must cover all existing liabilities under the Act and remain in force until all obligations under the Act have been fully discharged.  

Authorities

23.30.005;23.30.075;23.30.090;44.31.020

Notes

Reference

8 AAC 46.020

Authority

AS 23.30.005 AS 23.30.075 AS 23.30.090 AS 44.31.020

History

Eff. 6/20/2010, Register 194