Section 21.34.070. Declaration of ineligibility.

   (a) If after a review of a nonadmitted insurer and consideration of factors including quality of management, capital and surplus of a parent company, underwriting profit, investment income trends, trade practices, reserving practices, company record, and reputation within the industry, the director finds the insurer to be unacceptable, the director may declare the nonadmitted insurer to be ineligible.
   (b) The director may issue an order declaring a nonadmitted insurer ineligible if at any time the director has reason to believe that the nonadmitted insurer
        (1) is in unsound financial condition;
        (2) is no longer eligible under AS 21.34.040;
        (3) has wilfully violated the laws of this state or another state; or
        (4) does not reasonably investigate and make prompt payment of just losses and claims in this state or another state.
   (c) The director shall promptly mail notice of all declarations under (b) of this section to each licensed surplus lines broker.

Authorities

21.14.100

Notes

References

AS 21.14.100 Penalty for violation.

History

(Sec. 21 ch 117 SLA 1984; am Sec. 123 ch 67 SLA 1992)