Section 21.69.220. Initial qualifications of domestic mutuals.

   (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 this title, and must have received and accepted bona fide applications as to substantial insurable subjects for insurance coverage of a substantial character of the kind of insurance proposed to be transacted, must have collected in cash the full premium at a rate not less than that usually charged by stock insurers for comparable coverages, must have surplus funds on hand and deposited as of the date the insurance coverages are to become effective, or, in lieu of the applications, premiums, and surplus, may deposit surplus, all in accordance with that part of the following schedule that applies to the one kind of insurance the insurer proposes to transact:
                                                                
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      (A)              (B)            (C)              (D)             
                   Minimum No.    Minimum No.                          
                        of             of            Minimum           
    Kind of         Applicants      Subjects         Premium           
   Insurance         Accepted       Covered         Collected          
-------------------------------------------------------------          
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Life (1)                 500          500            annual            
Health (2)               500          500           quarterly          
Property (3)             100          250            annual            
Casualty (4)             250          500            annual            
With Workers'                                                          
Compensation             250        1,500           quarterly          
Marine, Wet                                                            
Marine, and                                                            
Transportation            50           50            annual            
                                                                
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      (E)              (F)            (G)              (H)             
                     Maximum                                           
    Minimum         Amount of       Minimum                            
   Amount of        Insurance       Surplus          Deposit           
   Insurance           Each          Funds           of                
                                                     Surplus           
      Each           Subject       Deposited         in Lieu           
                                                     of                
    Subject            (5)            (6)              (6)             
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  $1,000             $ 2,500       $  800,000       $  800,000         
  $     10         $      25       $  800,000       $  800,000         
  (weekly            (weekly                                           
  indem.)            indem.)                                           
  $1,000             $ 3,000       $  600,000       $  600,000         
  $1,000             $10,000       $1,000,000       $1,000,000         
  $1,000             $10,000       $1,000,000       $1,000,000         
  $1,000             $25,000       $1,000,000       $1,000,000         
   (c) The following provisos are respectively applicable to the schedule in (b) of this section and provisions as indicated by like numerals appearing in the schedule:
        (1) group insurance or term policies for terms of less than 10 years may not be included;
        (2) group, blanket, or family plans of insurance may not be included; in lieu of weekly indemnity a like premium value in medical, surgical and hospital benefits may be provided; any accidental death or dismemberment benefit provided may not exceed $2,500;
        (3) only insurance of the owner's interest in real property may be included;
        (4) must include insurance of legal liability for bodily injury and property damage, to which the maximum and minimum insured amounts apply;
        (5) the maximums provided for in column (F) are net of applicable reinsurance;
        (6) the deposit of surplus in the amount specified in columns (G) and (H) must thereafter be maintained unimpaired; the deposit is subject to the provisions of AS 21.24.

Authorities

21.69.230

Notes

References

AS 21.69.230 Formation of mutual insurer.

History

(Sec. 1 ch 120 SLA 1966; am Sec. 1 ch 127 SLA 1970; am Sec. 3 ch 5 SLA 1985; am Sec. 79 ch 56 SLA 1996)