Section 21.66.020. Deposits in guaranty fund; insolvency of insurance company.

   (a) In addition to the deposit required in AS 21.66.010(b), within 30 days after the filing of each annual statement, the title insurance company shall deposit with the director a sum equal to 10 percent of the premiums written during the preceding year covering property in this state, as shown by the annual statement, until the accumulated deposits, added to the sums originally deposited with the director, as provided in this chapter, total $750,000, but the title insurance company may not be required to deposit more than $50,000 in any one year. The purpose of this deposit is to provide a guaranty fund for payment of claims under title guaranties and policies issued in Alaska in the event of the insolvency of the title insurer.
   (b) When a title insurance company holding a certificate of authority under this chapter is found to be insolvent by a proceeding in a court of competent jurisdiction, the director shall take control of deposits made by the title insurance company and held in this state. If the finding of insolvency is from a court in another state, the director shall file for an ancillary receivership under AS 21.78 to administer the deposits and other assets in this state and pay claims in this state. Any funds remaining after payment of all claims under policies in this state shall be forwarded to the receiver.
   (c) On request of a title insurance company, the director shall return the assets held on deposit when the company is no longer authorized to write insurance in this state, the director is satisfied that there are no risks in the state covered by contracts of the company, and the assets are no longer required to be held by any provision of law.
   (d) In addition to the provisions of this section, the following provisions of this title also apply with respect to deposits under this section to the extent applicable and not in conflict with the express provisions of this chapter and the reasonable implications of the express provisions:
        (1) AS 21.24.040(a), (d), and (e);
        (2) AS 21.24.060.

Notes

History

(Sec. 1 ch 120 SLA 1966; am Sec. 2 ch 120 SLA 1974; am Sec. 155 ch 67 SLA 1992; am Sec. 44 ch 96 SLA 2004; am Sec. 82 ch 23 SLA 2011)