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- Alaska Statutes.
- Title 21. Insurance
- Chapter 22. Insurance Holding Companies
- Section 85. Transactions Involving a Domestic Insurer Requiring Director Review.
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Section 80. Transactions With Affiliates.
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Section 90. Adequacy of Surplus.
AS 21.22.085. Transactions Involving a Domestic Insurer Requiring Director Review.
- (a) The following transactions involving a domestic insurer and a person in its holding company system may not be entered
into unless the insurer has notified the director in writing of the insurer's intention to enter into the transaction
at least 30 days before the transaction, or a shorter period if allowed by the director, and the director has not
disapproved the transaction within the required notice period:
- (1) a sale, purchase, exchange, loan or extension of credit, guarantee, or investment, provided the transaction is equal
to or exceeds
- (A) with respect to insurers other than life insurers, the lesser of three percent of the insurer's admitted assets or 25
percent of surplus that pertains to policyholder surplus, each calculated under AS 21.21.020(d); or
- (B) with respect to life insurers, three percent of the insurer's admitted assets calculated under AS 21.21.020
(d);
- (2) a loan or extension of credit to a person who is not an affiliate, where the insurer makes loans or extensions of
credit with the agreement or understanding that the proceeds of the transaction, in whole or in substantial part, are
to be used to make a loan or extension of credit to, purchase an asset of, or make an investment in an affiliate of the
insurer making the loan or extension of credit provided the transaction is equal to or exceeds
- (A) with respect to insurers other than life insurers, the lesser of three percent of the insurer's admitted assets or 25
percent of surplus that pertains to policyholder surplus, each calculated under AS 21.21.020(d); or
- (B) with respect to life insurers, three percent of the insurer's admitted assets calculated under AS 21.21.020
(d);
- (3) a reinsurance agreement or modification in which the reinsurance premium or change in the insurer's liabilities equals
or exceeds five percent of the insurer's surplus that pertains to policyholder surplus, calculated under AS 21.21.020
(d), including an agreement that may require as consideration the transfer of assets from an insurer to a nonaffiliate
if an agreement or understanding exists between the insurer and nonaffiliate that a portion of the assets will be
transferred to an affiliate of the insurer;
- (4) a management agreement, service contract, or cost-sharing arrangement; and
- (5) a material transaction specified by regulation that the director determines may adversely affect the interests of the
insurer's policyholders.
- (b) Nothing in (a) of this section authorizes or permits a transaction that, in the case of an insurer not a member of the
same holding company system, would violate a provision of law.
- (c) A domestic insurer may not enter into a transaction that is part of a plan or series of similar transactions with
persons within the holding company system if the purpose of the separate transaction is to avoid the statutory
threshold amount and avoid review that would otherwise occur. If the director determines that this separate transaction
is entered into over a 12-month period for this purpose, the director may impose penalties under AS 21.22.065
(i), 21.22.170, AS 21.36.320, and 21.36.360(a).
- (d) The director, in reviewing a transaction under this section, shall consider whether the transaction complies with the
standards provided in AS 21.22.080
and whether the transaction may adversely affect the interests of policyholders.
- (e) A domestic insurer shall notify the director within 30 days of an investment of a domestic insurer in a corporation
if, after the investment, the total investment by the insurance holding company system in a corporation exceeds 10
percent of the corporation's voting securities.
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