Title 21 — Insurance
53 chapters · 1,244 sections in this title.
AS 21.69.010 Applicability of chapter.
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This chapter applies only to domestic stock insurers and domestic mutual insurers transacting, or proposing to transact, insurance on the cash premium or legal reserve plan, except that AS 21.69.280 and 21.69.460 also apply to foreign and alien insurers.
AS 21.69.020 Applicability of general corporation statutes.
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The applicable laws of this state as to domestic corporations formed for profit apply to domestic stock insurers and domestic mutual insurers, except where in conflict with the express provisions of this title and the reasonable implications of the provisions.
AS 21.69.030 Incorporation.
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(a) This section applies to stock and mutual insurers incorporated in this state after July 1, 1966. (b) Five or more individuals, none of whom are less than 21 years of age, may incorporate a stock insurer; 10 or more individuals may incorporate a mutual insurer. At least a majo…
AS 21.69.040 Articles of incorporation.
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(a) The incorporators of a proposed domestic insurer shall deliver the triplicate originals of the articles of incorporation to the director together with the filing fees set under AS 21.06.250. (b) When the articles of incorporation have been approved by the director, the direct…
AS 21.69.050 Amendment of articles of incorporation.
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(a) A domestic stock insurer may amend its articles of incorporation for any lawful purpose by written authorization of the holders of a majority of the voting power of its outstanding capital stock or by affirmative vote of a majority voting at a lawful meeting of stockholders o…
AS 21.69.060 Solicitation permit.
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(a) A person forming or proposing to form in this state an insurer, or insurance holding corporation, or stock corporation to finance an insurer or insurance production therefor, or corporation to manage an insurer, or corporation to be attorney-in-fact for a reciprocal insurer, …
AS 21.69.070 Application for solicitation permit.
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To apply for a solicitation permit the person shall (1) file with the director a request showing (A) the name, type, and purpose of insurer, corporation, or syndicate proposed to be formed; (B) the names, addresses, and business records of each person associated or to be associat…
AS 21.69.080 Procedure upon application.
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(a) The director shall expeditiously examine the application for a solicitation permit and make an investigation if considered necessary. If the director finds that (1) the application is complete; (2) the documents filed with it are equitable in terms and proper in form; and (3)…
AS 21.69.090 Issuance of permit.
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Upon the filing of the bond required by AS 21.69.140 after notice by the director, the director shall (1) file the articles of incorporation of the proposed incorporated insurer or other corporation with the commissioner; (2) issue to the applicant a solicitation permit.
AS 21.69.100 Duration of permit.
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Every solicitation permit issued by the director must (1) be for a period of not over two years, subject to the right of the director to grant a reasonable extension for good cause; (2) state the securities for which subscriptions are to be solicited, the number, classes, par val…
AS 21.69.110 Permit as inducement prohibited.
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The granting of a solicitation permit is permissive only and does not constitute an endorsement by the director of any person or thing related to the proposed insurer, corporation, or syndicate and the existence of the permit may not be advertised or used as an inducement in a so…
AS 21.69.120 Solicitors' licenses.
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Solicitation for sale of securities to members of the public under a solicitation permit shall be made only by individuals licensed under the provisions of the securities act.
AS 21.69.130 Modification, revocation of permit.
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(a) The director may, for cause, modify a solicitation permit, or may, after a hearing, revoke a solicitation permit for violation of a provision of this title, or of the terms of the permit, or of a proper order of the director, or for misrepresentation. (b) The director shall r…
AS 21.69.140 Bond.
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(a) Except as provided in AS 21.69.230, the director may not issue a solicitation permit until the person applying for it files with the director a corporate surety bond in the penalty of $10,000, in favor of the state and for the use and benefit of the state and of subscribers a…
AS 21.69.150 Escrow of funds.
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(a) All funds received under a solicitation permit shall be deposited and held in escrow in a bond or trust company under an agreement approved by the director. Funds deposited may not be withdrawn, except (1) for the payment of promotion and organization expenses as authorized b…
AS 21.69.160 Liability of organizers.
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(a) The incorporators of an insurer or other corporation, or the persons proposing to form a reciprocal insurer, or a syndicate, shall be jointly and severally liable for its debts or liabilities until it has secured a certificate of authority, if an insurer, or has completed its…
AS 21.69.170 Payment for subscriptions.
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(a) A proposed stock insurer, corporation, or syndicate may not issue a share of stock or participation agreement except for payment in cash or in securities eligible for investment of funds of insurers. Shares or an agreement may not be issued until all subscriptions received un…
AS 21.69.180 Insurance applications.
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All applications for insurance obtained in forming a mutual or reciprocal insurer must provide that (1) issuance of the policy is contingent upon completion of organization of the insurer and issuance to it of a certificate of authority; (2) the prepaid premium or deposit will be…
AS 21.69.190 Failure to complete organization or to qualify.
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The director shall withdraw all funds held in escrow and refund to subscribers or applicants all sums paid in on stock or syndicate subscriptions, less that part of the sums paid in on subscriptions as has been allowed and used for promotion and organization expenses, and all sum…
AS 21.69.200 Subsequent financing.
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(a) A domestic insurer, or insurance holding corporation, or stock corporation for financing operations of a mutual insurer, or attorney-in-fact corporation of a reciprocal insurer, after (1) it has received a certificate of authority, if an insurer; or (2) it has completed its i…
AS 21.69.210 Penalty for exhibiting false accounts, etc.
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A person determined by the director, following an appropriate hearing as provided in AS 21.06.170 — 21.06.230, to have knowingly exhibited, with intent to deceive, a false account, document, or advertisement, relative to the affairs of an insurer, or of a corporation or syndicate…
AS 21.69.220 Initial qualifications of domestic mutuals.
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(a) When newly organized, a domestic mutual insurer may be authorized to transact any one of the kinds of insurance listed in the schedule contained in (b) of this section. (b) When applying for an original certificate of authority, the insurer must be otherwise qualified under t…
AS 21.69.230 Formation of mutual insurer.
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(a) Before soliciting applications for insurance required under AS 21.69.220 as qualification for the original certificate of authority, the incorporators of the proposed insurer shall file with the director a corporate surety bond in the penalty of $20,000, in favor of the state…
AS 21.69.240 Applications for insurance in formation of mutual insurer.
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(a) Upon receipt of the director's approval of the bond or deposit as provided in AS 21.69.230, the directors and officers of the proposed domestic mutual insurer may commence solicitation of the requisite applications for insurance policies which they may accept, and may receive…
AS 21.69.250 Formation of mutuals.
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(a) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance shall be deposited in trust in a bank or trust company in this state under a written trust agreement consistent with this section and AS 21.69.240(c)(3). The corpo…
AS 21.69.260 Failure to qualify.
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If the proposed domestic insurer fails to complete its organization and to secure its original certificate of authority within one year from and after the date of its certificate of incorporation, its corporate powers shall cease, and the director shall return or cause to be retu…
AS 21.69.270 Additional kinds of insurance.
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A domestic mutual insurer, after being authorized to transact one kind of insurance, may be authorized by the director to transact the additional kinds of insurance that are permitted under AS 21.09.060 while otherwise in compliance with this title and while maintaining unimpaire…
AS 21.69.280 Membership in mutuals.
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(a) Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer with all rights and obligations of the membership, and the policy must so specify. (b) A person, government or governmental agency, state or political subdivision …
AS 21.69.290 Bylaws of mutual.
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(a) A domestic mutual insurer shall have bylaws for the governing of its affairs. The initial board of directors of the insurer shall adopt original bylaws, subject to the approval of the insurer's members at the next succeeding meeting. The members shall have power to make, modi…
AS 21.69.300 Bylaws of stock insurer.
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A bylaw adopted at a meeting of stockholders of a domestic insurer may not be modified or revoked except by the stockholders at a subsequent meeting unless the bylaw as adopted or amended by the stockholders grants authority to the board of directors to revoke or modify bylaw pro…
AS 21.69.310 Meetings of stockholders or members.
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(a) Meetings of stockholders or members of a domestic insurer shall be held in the city or town of its principal office or place of business. The meetings may be held, for good cause, in another location upon approval of the director. (b) A meeting of stockholders or members may …
AS 21.69.320 Proxies.
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The director shall adopt regulations concerning proxies, consents and authorizations in respect to securities issued by domestic insurance companies. The regulations adopted shall substantially conform to the recommendations of the National Association of Insurance Commissioners.
AS 21.69.330 Corrupt practices.
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The director shall adopt regulations regarding the conduct of meetings of shareholders and members of an insurer and the purchase, sale, and bartering of votes and proxies.
AS 21.69.340 Directors.
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(a) The affairs of every domestic insurer shall be managed by the number of directors fixed in the insurer's bylaws, which shall not be less than five or more than 21 directors. (b) Directors must be elected at the time and place, and for the terms, not exceeding three years, pro…
AS 21.69.350 Participation of policyholders in election of directors.
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The bylaws of a domestic stock life insurer may provide a plan for its policyholders to participate in the election of its directors.
AS 21.69.360 Bond of officers of mutual.
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(a) The president, secretary, and treasurer of a mutual insurer shall each file with the director and thereafter maintain in force as long as the person is an officer, a fidelity bond in the sum of $10,000 issued by an authorized corporate surety in favor of the insurer. In lieu …
AS 21.69.370 Prohibited pecuniary interest of officials.
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(a) An officer or director, or a member of a committee or an employee of a domestic insurer who is charged with the duty of investing or handling the insurer's funds may not deposit or invest the funds except in the insurer's corporate name; may not borrow the funds of the insure…
AS 21.69.380 Management and exclusive agency contracts.
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(a) A domestic insurer may not make a contract granting a person or permitting a person to enjoy in fact the management of the insurer to the substantial exclusion of its board of directors or to have the controlling or preemptive right to produce substantially all insurance busi…
AS 21.69.390 Home office and records.
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(a) Each domestic insurer shall have and maintain a place of business in this state, and shall keep in this state and in its principal place of business a complete record of its assets, transactions, and affairs in accordance with the methods and systems that are customary or sui…
AS 21.69.400 Vouchers for expenditures.
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(a) An insurer may not make a disbursement of $100 or more, unless evidenced by a voucher correctly describing the consideration for the payment and supported by a check or receipt endorsed or signed by or on behalf of the person receiving the money. (b) If the disbursement is fo…
AS 21.69.410 Agreement not to sell property prohibited.
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An insurer may not enter into an agreement to withhold from sale any of its property. Disposition of an insurer's property shall be at all times within the control of its board of directors.
AS 21.69.420 Solicitations in other states.
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(a) A domestic insurer may not knowingly solicit insurance business in a reciprocating state in which it is not then licensed as an authorized insurer. (b) This section does not prohibit advertising through publication and radio, television, and other broadcasts originating outsi…
AS 21.69.430 Contingent liability of mutual members.
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(a) Each member of a domestic mutual insurer shall, except as provided with respect to nonassessable policies, have a contingent liability, pro rata and not one for another, for the discharge of its obligations, which contingent liability shall be expressed in the policy and be i…
AS 21.69.440 Levy of contingent liability.
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(a) If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it by this title for authority to transact the kinds of insurance being transacted and the deficiency is not cured from other so…
AS 21.69.450 Enforcement of contingent liability.
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(a) An assessment made by an insurer under AS 21.69.440 or 21.69.540 shall be considered to be prima facie correct. The amount of the assessment to be paid by each member as determined by the insurer shall be considered to be likewise prima facie correct. (b) The insurer shall no…
AS 21.69.460 Nonassessable policies, mutual insurers.
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(a) When possessing surplus funds in an amount not less than the paid-in capital stock required of a domestic stock insurer transacting like kinds of insurance, a domestic mutual insurer may, upon receipt of the director's order so authorizing, extinguish the contingent liability…
AS 21.69.470 Nonassessable policies.
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The director shall revoke the authority of a domestic mutual insurer to issue policies without contingent liability if at any time the insurer's assets are less than the sum of its liabilities and the surplus required for the authority, or if the insurer, by resolution of its boa…
AS 21.69.480 Participating policies.
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(a) If provided in its articles of incorporation, a domestic stock or domestic mutual insurer may issue any or all of its policies with or without participation in profits, savings, or unabsorbed portions of premiums, may classify policies issued on a participating and nonpartici…
AS 21.69.490 Dividends to stockholders.
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(a) A domestic stock insurer may not pay a cash dividend to stockholders except out of that part of its available surplus funds that is derived from realized net profits on its business. (b) A stock dividend may be paid out of any available surplus funds in excess of the aggregat…
AS 21.69.500 Dividends to mutual policyholders.
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(a) The directors of a domestic mutual insurer may from time to time apportion and pay or credit to its members dividends only out of that part of its surplus funds that represents net realized savings and net realized earnings in excess of the surplus required by law to be maint…