Section 21.75.050. Surplus funds required.

   (a) A domestic reciprocal insurer formed in accordance with the provisions of this chapter shall have and maintain a surplus no less than an amount equal to the total of the capital and one-half of the surplus that would be required of a domestic stock insurer writing the same lines for which the reciprocal insurer seeks to be authorized.
   (b) A foreign reciprocal insurer shall have and maintain a surplus no less than an amount equal to the total capital and surplus that would be required of a domestic stock insurer writing the same lines for which the reciprocal seeks to be authorized.
   (c) A domestic reciprocal insurer formed under this chapter by and insuring only 10 or more municipalities shall
        (1) comply with (a) of this section or post a bond for an amount equal to the capital that would be required of a domestic stock insurer writing the same lines of insurance for which the reciprocal insurer seeks to be authorized; and
        (2) maintain a surplus of $250,000 in admitted assets or a surplus sufficient to operate the reciprocal insurer for one year, whichever is greater.
   (d) Notwithstanding (a) and (c) of this section, or AS 21.09.080, domestic reciprocal insurers duly licensed and capitalized on December 31, 1984, shall have and maintain the capital and surplus required at the date of their original license.
   (e) Notwithstanding (a) - (c) of this section, the director shall establish by regulation the level of surplus to be maintained by a reciprocal insurer providing marine insurance.

Authorities

21.75.055;21.75.060

Notes

References

AS 21.75.055 Surplus funds for cooperative insurers.
AS 21.75.060 Organization of reciprocal insurer.

History

(Sec. 1 ch 120 SLA 1966; am Sec. 4 ch 150 SLA 1978; am Sec. 2 ch 104 SLA 1983; am Sec. 4 ch 5 SLA 1985; am Sec. 5 ch 48 SLA 1986)