Alaska Administrative Code

(a) Subject to the limitations in 3 AAC 21.325, a property and casualty insurer may acquire, hold, or invest in a foreign investment or engage in an investment practice with a person of or in a foreign jurisdiction, if (1) the investment is of substantially the same type that a p…

(a) A property and casualty insurer may, directly or indirectly through an investment subsidiary, engage in a derivative transaction under the following conditions: (1) a property and casualty insurer may use a derivative instrument to engage in a hedging transaction or in an inc…

(a) Except as provided in this section, a property and casualty insurer may not, without first fulfilling the obligation imposed under this section, (1) invest in an otherwise qualifying investment issued by or due from an affiliated party; (2) purchase from an affiliated party a…

(a) A property and casualty insurer may acquire, hold, or make an investment of any kind or engage in an investment practice that is not specifically prohibited by 3 AAC 21.201 - 3 AAC 21.399 without regard to a limitation in 3 AAC 21.325 - 3 AAC 21.360. However, the property and…

(a) For an investment to be treated as a rated credit instrument under 3 AAC 21.201 - 3 AAC 21.399, the investment (1) must consist of a contractual right to receive, from another entity, cash or a credit instrument, and (A) if the instrument has a maturity at the time of issue o…

In 3 AAC 21.201 - 3 AAC 21.399, unless the context requires otherwise, (1) "acceptable collateral" means, as to a(A) securities lending transaction and for the purpose of calculating counterparty exposure amount, (i) cash; (ii) cash equivalents; (iii) letters of credit; (iv) dire…

(a) A domestic insurer is required to file quarterly financial statements, as described in AS 21.09.205, with the director of insurance. (b) Repealed 11/21/2004. Notes 3 AAC 21.400 Eff. 9/27/91, Register 119; am 11/21/2004, Register 172 Authority:AS 21.06.090 AS 21.09.205 State r…

Notes 3 AAC 21.410 Eff. 9/27/91, Register 119; repealed 11/21/2004, Register 172 State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will…

Notes 3 AAC 21.420 Eff. 9/27/91, Register 119; repealed 11/21/2004, Register 172 State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will…

Each domestic insurer shall keep at its principal place of business in this state the following records of its assets, transactions, and affairs: (1) items specified in AS 21.69.390(d); (2) vouchers and affidavits required under AS 21.69.400; (3) documentation that substantiates …

(a) Unless otherwise required by law or unless the director orders a longer retention period, a domestic insurer shall retain records required by AS 21.69.390 and 3 AAC 21.460, including records relating to losses and claims, for the following period of time after the date the re…

(a) As used in AS 21.69.390(d)(8), a "corporate minutes book" must include the minutes of all proceedings of shareholders, members, the board of directors, and each committee of the board of directors. The minutes of the board of directors must include all (1) resolutions adopted…

(a) An automobile service corporation holding a certificate of authority under AS 21.59 shall file with the director (1) annually on or before March 1 a full and true statement of the automobile service corporation's financial condition, transactions, and affairs as of the preced…

A self-funded multiple employer welfare arrangement holding a certificate of authority under AS 21.85, and meeting the requirements under AS 21.85.080(a)(4), shall file with the director annually on or before June 1 a certified financial statement of the financial condition, tran…

The purpose of 3 AAC 21.500 - 3 AAC 21.520 is to identify standards the director will, in the director's discretion, use to identify an insurer that is impaired, as defined in AS 21.97.900, or in imminent danger of becoming impaired, under AS 21.09.175. Notes 3 AAC 21.500 Eff. 10…

(a) To determine whether an insurer is impaired or in imminent danger of becoming impaired, the director may consider one or more of the following: (1) findings in financial condition and market conduct examination reports prepared by the division or another licensing jurisdictio…

(a) If the director determines that an insurer is impaired or in imminent danger of becoming impaired, the director may order the insurer to take one or more of the following actions: (1) reduce the total amount of present and potential liability for policy benefits by reinsuranc…

Except as provided in 3 AAC 21.560, for a tax year ending December 31, an entity required to pay a tax under AS 21.09.210 or AS 21.66.110 shall pay the required tax to the director on or before March 1 of the following tax year. Notes 3 AAC 21.550 Eff. 2/6/98, Register 145; am 9/…

(a) An authorized insurer who pays the director $10,000 or more in one tax year under the requirements of AS 21.09.210 or AS 21.66.110 shall, in the following tax year, pay the premium tax in four payments. If required to pay premium tax in four payments, an authorized insurer sh…

(a) An authorized insurer or surplus lines broker shall pay by the Automated Clearing House debit or credit payment system (1) all premium taxes required under AS 21.09.210, AS 21.34.180, AS 21.59.070AS21.66.110 or AS 21.85.100; and (2) filling fees required under AS 21.34.190. (…

In AS 21.09.210(m)"individual life insurance" means a life insurance policy on the life of one individual or the lives of more than one individual for estate planning purposes that (1) may not be a key person insurance policy or part of a group life insurance policy; (2) may not …

(a) The provisions of 3 AAC 21.610 - 3 AAC 21.630 apply to domestic insurers with authority to write life and health lines of business, to all other licensed life and health insurers that are not subject to a substantially similar regulation in their domiciliary state, and to the…

(a) A life or health insurer subject to 3 AAC 21.600 - 3 AAC 21.695 may not, for reinsurance ceded, reduce a liability or establish an asset in a statutory financial statement filed with the division if, by the terms of the reinsurance agreement, any of the following conditions e…

(a) The purpose and intent of this section is to (i) establish uniform, national standards governing reserve financing arrangements pertaining to (A) life insurance policies containing (i) guaranteed nonlevel gross premiums; and (ii) guaranteed nonlevel benefit and (B) universal …

(a) A reinsurance agreement or an amendment to a reinsurance agreement may not be used to reduce a liability or to establish an asset in a statutory financial statement filed with the division unless the agreement, the amendment, or a binding letter of intent has been executed by…

(a) An insurer subject to 3 AAC 21.600 - 3 AAC 21.695 shall reduce to zero by December 31, 1995 a reserve credit or asset established by a reinsurance agreement entered into before January 1, 1995 which, under the provisions of 3 AAC 21.600 - 3 AAC 21.695, would not be allowed a …

(a) The director will not grant credit to a ceding insurer for reinsurance with an assuming insurer unless the reinsurance agreement between the ceding insurer and assuming insurer includes (1) an insolvency clause stating that the assuming insurer will remain liable for a claim …

The director will allow credit to be recorded on a domestic insurer's statutory financial statement for reinsurance ceded to an assuming insurer that is licensed and in good standing in this state no later than the "as of date" of the ceding insurer's statutory financial statemen…

(a) The director will allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is accredited as a reinsurer in this state no later than the "as of date" of the ceding insurer's statutory financial statement. An accredited reinsurer must (1) file a prop…

Notes 3 AAC 21.650 Eff. 11/25/94, Register 132; repealed 12/26/2019, Register 232, January 2020 State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More compariso…

A reinsurer who is required to provide evidence of its submission to this state's jurisdiction and to this state's authority to examine its books and records must do so on a certificate of assuming insurer in substantially the following form: CERTIFICATE OF ASSUMING INSURER I, (n…

(a) The director will allow credit for reinsurance ceded by a domestic insurer to an authorized assuming insurer that meets the requirements of AS 21.12.020(a)(3) on or before the date of the ceding insurer's statutory financial statement if the authorized assuming insurer (1) is…

(a) Under AS 21.12.020(a)(6), the director will allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is licensed to write reinsurance by, and has its head office or is domiciled in, a reciprocal jurisdiction, and that meets the other requirements o…

(a) The director shall allow credit for reinsurance ceded by a domestic insurer to an authorized assuming insurer that maintains a trust fund on or before the as of date of the ceding insurer's statutory financial statement. The director shall allow this credit for as long as cre…

Under AS 21.12.020(a)(6), the director shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of AS 21.12.020(a)(1)-(5) but only as to the insurance of risks located in jurisdictions where the reinsurance is required by …

(a) Under AS 21.12.020(c), the director shall allow a reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of AS 21.12.020(a) in an amount not exceeding the liabilities carried by the ceding insurer. The reductio…

(a) The letter of credit must be clean, irrevocable, unconditional, and issued or confirmed by a qualified United States financial institution as defined in AS 21.12.020(h). The letter of credit must contain an issue date and expiration date and must stipulate that the beneficiar…

(a) A valid trust agreement shall (1) be entered into between the beneficiary, the grantor, and a trustee, which shall be a qualified United States financial institution as defined in AS 21.12.020(h); (2) create a trust account into which assets shall be deposited. All assets in …

(a) In addition to meeting the requirements under 3 AAC 21.665, a trust agreement for a trust fund maintained by an unauthorized assuming insurer may provide that (1) the trustee may resign upon delivery of a written notice of resignation, effective not less than 90 days after th…

(a) The letter of credit securing credit for reinsurance with an unauthorized assuming insurer must (1) contain an issue date and date of expiration and stipulate that the ceding insurer need only draw a sight draft under the letter of credit and present it without other document…

(a) If a reinsurance agreement between a ceding insurer and an unauthorized assuming insurer is secured by a letter of credit, the reinsurance agreement, to the extent allowable by law, may provide that the ceding insurer may draw upon the letter of credit under the terms of the …

Credit for reinsurance with an unauthorized assuming insurer may be secured by unencumbered funds withheld from the unauthorized assuming insurer by the ceding insurer and maintained in the United States, subject to withdrawal solely by the ceding insurer and under its exclusive …

A new or renewal reinsurance transaction entered into after December 31, 1994 must conform to the requirements under 3 AAC 21.600 - 3 AAC 21.695 if credit is taken by the ceding insurer of the reinsurance transaction, but a trust agreement, letter of credit, or underlying reinsur…

For purposes of 3 AAC 21.600 - 3 AAC 21.695, liabilities are the assuming insurer's gross obligations that are attributable to reinsurance ceded by United States domiciled insurers, and that are not otherwise secured to the ceding insurer by the types of collateralization listed …

(a) Pursuant to AS 21.12.020(a)(5), the director shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that has been certified as a reinsurer in this state at all times for which statutory financial statement credit for reinsurance is claimed under…

In 3 AAC 21.600 - 3 AAC 21.695, unless the context requires otherwise, (1) "as of date" means a specific measurement date for a set of statutory financial statements; (2) "authorized assuming insurer" means an assuming insurer that meets the requirements of AS 21.12.020(a); (3) "…

The director will make a determination as to the financial condition of each non-domestic admitted insurer by conducting an examination under AS 21.06.120 at least once every five years. Notes 3 AAC 21.700 Eff. 10/24/92, Register 124 Authority:AS 21.06.090 AS 21.06.120 AS 21.09.1…

(a) Except as provided in (b) and (c) of this section, the filing requirement of AS 21.09.200(g) constitutes a financial or organizational hardship on an insurer, and the insurer is exempt from the filing requirement if (1) direct premiums written in the state are less than $1,00…

(a) The director may extend the due date of the annual audited financial report for 30-day periods if the insurer and its independent certified public accountant submit a request that gives the reasons for needing an extension and the director determines there is good cause to gr…

(a) Within 60 days after the director notifies an insurer that the insurer is required to file an annual audited financial report, the insurer shall submit in writing to the director the name and address of the independent certified public accountant or accounting firm retained t…