Section 21.09.090. Deposit requirement.

   (a) This section applies to all insurers.
   (b) The director may not authorize an insurer to transact insurance in this state unless it makes and thereafter maintains in trust in this state through the director for the protection of all its policyholders or of all its policyholders and creditors, a deposit of cash or securities eligible for deposit under AS 21.24.030 in the amount of no less than $300,000, except that
        (1) from foreign insurers, in lieu of the deposit or part thereof in this state, the director may accept the certificate in proper form of the public official having supervision over insurers in any other state to the effect that a like deposit or part thereof by the insurer is being maintained in public custody or control under the law in that state in trust for the protection generally of the insurer's policyholders or its policyholders and creditors, in the United States;
        (2) from alien insurers, in lieu of the deposit or part thereof in this state, the director may accept evidence satisfactory to the director that the insurer maintains within the United States by way of trust deposits with public depositaries, or in trust institutions acceptable to the director, assets available for discharge of its United States insurance obligations, which assets shall be in an amount not less than the outstanding liabilities of the insurer arising out of its insurance transactions in the United States together with a surplus equal to the larger of the following sums:
             (A) the largest deposit required by this title to be made by a foreign insurer transacting like kinds of insurance; or
             (B) $300,000; which surplus shall for all purposes under this title be considered to be the capital or surplus of the insurer.
   (c) Deposits of foreign insurers, or deposits of alien insurers under (b)(2)(A) or (B) of this section in another state shall be in cash or securities of substantially as high quality as those eligible for deposit in this state under AS 21.24.030.
   (d) All such deposits in this state are subject to the applicable provisions of AS 21.24.

Authorities

21.09.110;21.24.020;21.24.030;21.24.130;21.66.010;21.87.340

Notes

References

3 AAC 21.460
AS 21.09.110 Application for certificate of authority.
AS 21.24.020 Purpose of deposit.
AS 21.24.030 Securities eligible for deposit.
AS 21.24.130 Duration and release of deposit.
AS 21.66.010 Paid in capital and reserves.
AS 21.87.340 Other provisions applicable.

History

(Sec. 1 ch 120 SLA 1966; am Sec. 4 ch 206 SLA 1976; am Sec. 11 ch 21 SLA 1985; am Sec. 14 ch 67 SLA 1992)