AK SB88

Increases the cap on the state insurance catastrophe reserve account from $5,000,000 to $50,000,000 for money that may be retained at the end of a fiscal year without lapsing.

Allows the Department of Administration to allocate funds from state agency insurance appropriations to the catastrophe reserve account as determined necessary by the commissioner.

Permits the department to charge additional amounts from unencumbered balances of other appropriations if claims or judgments exceed the reserve account balance in a fiscal year.

Clarifies that the $50,000,000 cap applies only to unobligated money in the account at the end of a fiscal year.

Takes effect June 30, 2021.