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Alaska Statutes.

Title 21. Insurance

Chapter 22. Insurance Holding Companies

Section 117. Group-Wide Supervision of Internationally Active Insurance Groups.

AS 21.22.117. Group-Wide Supervision of Internationally Active Insurance Groups.

   (a) The director may act as the group-wide supervisor for an internationally active insurance group in accordance with this section. However, the director may acknowledge another regulatory official as the group-wide supervisor if the internationally active insurance group
        (1) does not have substantial insurance operations in the United States;
        (2) has substantial insurance operations in the United States but not in this state; or
        (3) has substantial insurance operations in the United States and this state, but the director has determined under (b) or (f) of this section that the other regulatory official is the appropriate group-wide supervisor; an insurance holding company system that does not otherwise qualify as an internationally active insurance group may request that the director make a determination or acknowledgment of a group-wide supervisor under this section.
   (b) In cooperation with other state, federal, and international regulatory agencies, the director shall identify a single group-wide supervisor for an internationally active insurance group. The director may determine that the director is the appropriate group-wide supervisor for an internationally active insurance group that conducts substantial insurance operations concentrated in this state. However, the director may acknowledge that a regulatory official from another jurisdiction is the appropriate group-wide supervisor for the internationally active insurance group. The director shall consider the following factors when making a determination or acknowledgment under this subsection:
        (1) the place of domicile of the insurers within the internationally active insurance group that hold the largest share of the group's written premiums, assets, or liabilities;
        (2) the place of domicile of the top-tiered insurer or insurers in the insurance holding company system of the internationally active insurance group;
        (3) the location of the executive offices or largest operational offices of the internationally active insurance group;
        (4) whether another regulatory official is acting or is seeking to act as the group-wide supervisor under a regulatory system that the director determines to be
             (A) substantially similar to the system of regulation provided under the laws of this state; or
             (B) otherwise sufficient in terms of providing for group-wide supervision, enterprise risk analysis, and cooperation with other regulatory officials; and
        (5) whether another regulatory official acting or seeking to act as the group-wide supervisor provides the director with reasonably reciprocal recognition and cooperation; a regulatory official identified under this section as the group-wide supervisor may determine that it is appropriate to acknowledge another supervisor to serve as the group-wide supervisor; the regulatory official shall consider the factors listed in this subsection when making an acknowledgment under this subsection and shall make the acknowledgment in cooperation with, and subject to, the acknowledgment of other regulatory officials involved with supervision of members of the internationally active insurance group and in consultation with the internationally active insurance group.
   (c) Notwithstanding any other provision of law, when another regulatory official is acting as the group-wide supervisor of an internationally active insurance group, the director shall acknowledge that regulatory official as the group-wide supervisor. However, the director shall make a determination or acknowledgment of the appropriate group-wide supervisor for the internationally active insurance group under (b) of this section in the event of a material change in the internationally active insurance group that results in
        (1) the internationally active insurance group's insurers domiciled in this state holding the largest share of the group's premiums, assets, or liabilities; or
        (2) this state being the place of domicile of the top-tiered insurer or insurers in the insurance holding company system of the internationally active insurance group.
   (d) Under AS 21.22.110, the director may collect from an insurer registered under AS 21.22.060 the information necessary to determine whether the director may act as the group-wide supervisor of an internationally active insurance group or if the director may acknowledge another regulatory official to act as the group-wide supervisor. Before issuing a determination that an internationally active insurance group is subject to group-wide supervision, the director shall notify the insurer registered under AS 21.22.060 and the ultimate controlling person within the internationally active insurance group. Upon notification, the internationally active insurance group has a minimum of 30 days to provide the director with additional information pertinent to the pending determination. The director may publish on the division's Internet website the identity of internationally active insurance groups that the director has determined are subject to group-wide supervision by the director.
   (e) If the director is the group-wide supervisor for an internationally active insurance group, the director may
        (1) assess the enterprise risks in the internationally active insurance group to ensure
             (A) the material financial condition and liquidity risks to members of the internationally active insurance group that are engaged in the business of insurance are identified by management; and
             (B) reasonable and effective mitigation measures are in place;
        (2) request from a member of an internationally active insurance group subject to the director's supervision information necessary and appropriate to assess enterprise risk, including information about the members of the internationally active insurance group regarding
             (A) governance, risk assessment, and management;
             (B) capital adequacy; and
             (C) material intercompany transactions;
        (3) coordinate and, through the authority of the regulatory officials of the jurisdictions where members of the internationally active insurance group are domiciled, compel development and implementation of reasonable measures designed to ensure that the internationally active insurance group is able to timely recognize and mitigate enterprise risks to members of the internationally active insurance group that are engaged in the business of insurance;
        (4) communicate with other state, federal, and international regulatory agencies for members in the internationally active insurance group and share relevant information subject to the confidentiality provisions under AS 21.22.120, through supervisory colleges under AS 21.22.115 or otherwise;
        (5) enter into agreements with, or obtain documentation from, an insurer registered under AS 21.22.060, a member of the internationally active insurance group, or a state, federal, or international regulatory agency for members of the internationally active insurance group, providing the basis for, or otherwise clarifying, the director's role as group-wide supervisor, including provisions for resolving disputes with other regulatory officials; the agreements or documentation may not serve as evidence in a proceeding against an insurer or person in an insurance holding company system not domiciled or incorporated in this state or doing business in this state or otherwise subject to jurisdiction in this state; and
        (6) perform other group-wide supervision activities, consistent with the authorities and purposes set out in this subsection.
   (f) If the director acknowledges that another regulatory official from a jurisdiction that is not accredited by the National Association of Insurance Commissioners is the group-wide supervisor, the director may reasonably cooperate, through supervisory colleges or otherwise, with group-wide supervision undertaken by the group-wide supervisor under the following conditions:
        (1) the director's cooperation is in compliance with the laws of this state; and
        (2) the regulatory official acknowledged as the group-wide supervisor recognizes and cooperates with the director's activities as a group-wide supervisor for other internationally active insurance groups, where applicable; if recognition and cooperation is not reasonably reciprocal, the director may refuse recognition and cooperation.
   (g) The director may enter into agreements with, or obtain documentation from, an insurer registered under AS 21.22.060, an affiliate of the insurer, or other state, federal, and international regulatory agencies for members of the internationally active insurance group, that provide the basis for, or otherwise clarify, a regulatory official's role as group-wide supervisor.
   (h) A registered insurer subject to this section is liable for and shall pay the reasonable expenses of the director's participation in the administration of this section, including the engagement of attorneys, actuaries, and other professionals, and all reasonable travel expenses.