Section 21.22.080. Transactions within an insurance holding company system.

Material transactions by registered insurers with their affiliates are subject to the following standards:
        (1) the terms shall be fair and reasonable;
        (2) charges or fees for services performed shall be reasonable;
        (3) expenses incurred and payment received shall be allocated to the insurer in conformity with customary insurance accounting practices consistently applied;
        (4) the books, accounts, and records of each party to the transactions shall be maintained so as to disclose clearly and accurately the nature and details of the transactions including accounting information that is necessary to support the reasonableness of the charges or fees to the respective parties;
        (5) the insurer's surplus as regards policyholders following any dividends or distributions to shareholder affiliates or performance under a material transaction with an affiliate shall be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs; and
        (6) agreements for cost-sharing services and management must include the provisions required by regulations adopted by the director.

Authorities

21.22.070;21.22.085;21.22.105;21.22.170

Notes

Recent Bills that will modify this

HB 164 INSURANCE; RISK MG'T; HOLDING COMPANIES
SB 107 INSURANCE; RISK MG'T; HOLDING COMPANIES

Implemented As

3 AAC 21.185

References

3 AAC 21.185
AS 21.22.070 Review by director.
AS 21.22.085 Transactions involving a domestic insurer requiring director review.
AS 21.22.105 Management of domestic insurers subject to registration.
AS 21.22.170 Civil penalties for violations.

History

(Sec. 1 ch 202 SLA 1976; am Sec. 39 ch 67 SLA 1992; am Sec. 35 ch 34 SLA 2015)