Alaska Rural Electric Cooperative Ass'n v. INSCO Ltd.

OPINION

MOORE, Justice.

This appeal presents the issue whether an excess insurance carrier is obligated to “drop down” and provide primary coverage when the primary carrier becomes insolvent. This is an issue of first impression in Alaska. 1 Because we do not believe that insolvency of the primary carrier is one of the risks considered in determining an excess carrier’s premium, we hold that an excess insurer is not required to drop down upon insolvency of the primary insurer absent policy language to the contrary. We also hold that the language of the insurance policy in this case does not…