Title 06 — Banks and Financial Institutions
16 chapters · 580 sections in this title.
AS 06.40.010 License required.
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Except as provided in AS 06.40.020, a person may not engage in the business of entering into premium finance agreements on insurance sold in this state or risks located in this state, either directly or indirectly, or otherwise act as a premium finance company in this state witho…
AS 06.40.020 Applicability.
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This chapter does not apply to (1) an insurer authorized to transact business in this state with respect to premiums on policies that the insurer issues; (2) a bank, trust company, savings association, or other financial institution subject to the other chapters of this title and…
AS 06.40.030 Bond.
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(a) The applicant shall file with the application a bond to be approved by the department in which the applicant is the obligor, in the sum of $5,000 with one or more sureties. The bond shall be for the use of the state and any person who may have a cause of action against the ob…
AS 06.40.040 Annual license fee.
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On or before December 20 of each year, each licensee shall pay a fee of $200 to the department as an annual license fee for the next succeeding calendar year. At that same time the licensee shall file with the department a new bond that complies with AS 06.40.030.
AS 06.40.050 Application for license; fee; disclosure for child support purposes; interrogatories; refusal to issue or continue license.
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(a) Application for a license under this chapter shall be in writing and in the form prescribed by the department. If the applicant is a natural person, the application form must require submission of the applicant's social security number. (b) All reasonable investigation expens…
AS 06.40.060 Place of business.
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(a) A licensee may maintain only one place of business under a license. The department may issue more than one license to the same licensee upon application and compliance by the licensee with the provisions of this chapter governing the original issuance of a license. (b) If a l…
AS 06.40.070 Investigation; qualifications for license.
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(a) Upon the filing of an application and payment of the investigation fee specified in AS 06.40.050(b), the commissioner shall conduct an investigation of an applicant and shall issue a premium finance company license if the applicant meets the requirements of this chapter. If t…
AS 06.40.080 Revocation or suspension of license.
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Article 2. Operations. The commissioner may revoke or suspend the license of any licensee when, upon completion of an investigation, the commissioner determines that (1) the license issued to the company was obtained by fraud; (2) there was misrepresentation in the application fo…
AS 06.40.090 Misleading statements prohibited; disclosure of interest rate.
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(a) A person may not advertise, print, display, publish, distribute, or broadcast, or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any manner, any statement or representation with regard to the rates, terms, or conditions for the …
AS 06.40.100 Record keeping; examination of records; report.
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(a) A licensee shall maintain records of its premium finance transactions, including the insurance agents through which the licensee provides loans to residents of this state, and the records shall be open to examination and investigation by the commissioner at the office of the …
AS 06.40.110 Contents of premium finance agreement; deficiency balances.
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(a) A premium finance agreement must (1) be dated, signed by the borrower, and the printed portion of it shall be in at least eight-point type; (2) contain the name and place of business of the insurance agent negotiating the related insurance policy, the name and residence or th…
AS 06.40.120 Service charge; interest rate; prepayment.
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(a) A premium finance company may not charge, contract for, receive, or collect a service charge other than as permitted by this chapter. (b) The service charge is to be computed on the balance of the premiums due, after subtracting the down payment made by the borrower in accord…
AS 06.40.130 Delinquency charge; separate financing.
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(a) A premium finance agreement may provide for the payment by the borrower of a delinquency charge for any payment that is in default for a period of 10 days or more. The charge may be made for each month or fraction of a month that the payment is in default. The amount of the c…
AS 06.40.140 Cancellation of policy.
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(a) When a premium finance agreement contains a power of attorney enabling the licensee to cancel the insurance policy listed in the agreement, the insurance policy may not be cancelled by the licensee unless the cancellation is effectuated under this section. (b) The licensee sh…
AS 06.40.150 Return of unearned premiums.
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Article 3. General Provisions. (a) If a financed insurance policy is cancelled, and provided the insurer has been notified of the assignment of interest of the insured to the licensee, the insurer shall, within 60 days after the effective date of cancellation, take the steps that…
AS 06.40.160 Consequences of violations.
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(a) A lender who, in the making of any contract, loan, or premium finance agreement or the collection of interest or charges, does any act that violates AS 06.40.010 — 06.40.020, 06.40.090, or 06.40.110 — 06.40.130 shall at the option of the commissioner reimburse that portion of…
AS 06.40.170 Filing not required to perfect validity of agreement.
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A filing under AS 45.29 of the premium finance agreement is not necessary to perfect the validity of the agreement as a secured transaction against creditors, subsequent purchasers, pledgees, encumbrancers, successors, or assigns.
AS 06.40.180 Regulations, orders.
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The commissioner shall adopt regulations necessary to carry out this chapter, and the commissioner may order any person to cease violation of this chapter or a regulation adopted under it.
AS 06.40.190 Definitions.
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In this chapter, unless the context otherwise requires, (1) “commissioner” means the commissioner of commerce, community, and economic development or a designee of the commissioner; (2) “department” means the Department of Commerce, Community, and Economic Development; (3) “premi…