Alaska Statutes: AS 21.27.550. Appointment of Insurance Producer as An Agent.

Alaska Statutes. Title 21. Insurance Chapter 27. Producers, Agents, Administrators, Brokers, Adjusters, and Managers Section 550. Appointment of Insurance Producer as An Agent.

previous: Section 540. Trainee Insurance Producers. [Repealed, § 53 Ch 96 SLA 2004].
next: Section 560. Appointment of Insurance Producers as Brokers.

AS 21.27.550. Appointment of Insurance Producer as An Agent.

   (a) A person may not act as or represent to be a representative of, authorized or appointed agent of, or other term implying a contractual relationship with a particular admitted insurer, or accept applications on behalf of an admitted insurer, unless the person is licensed as an insurance producer under this chapter and is or becomes an appointed agent of the admitted insurer under AS 21.27.100.
   (b) An admitted insurer or managing general agent of an admitted insurer may not enter into an agency agreement with an insurance producer unless the managing general agent and the insurance producer are licensed under this chapter and there is in effect a written agency agreement that specifically sets out the duties, functions, powers, authority, and compensation of all parties to the contract. The written agreement shall be kept in the permanent records of the insurer or managing general agent, if any, and the insurance producer, and be open to inspection by the director.
   (c) All money collected for the account of an insurer shall be held by the insurance producer as a fiduciary.
   (d) An agency agreement may not be assigned in whole or in part by the insurance producer.
   (e) If the agency agreement permits the insurance producer to settle a claim on behalf of the insurer
        (1) a claim must be reported to the insurer within 30 days;
        (2) a copy of the claim file shall be sent to the insurer;
        (3) all insurance claim files shall be the property of the insurer or managing general agent, if any, and insurance producer, but upon an order of liquidation of the insurer, the files shall become the sole property of the insurer or the insurer's estate; the insurance producer shall have reasonable access to and the right to copy the files on a timely basis.
   (f) An insurance producer is subject to the unfair trade practice and fraud provisions under AS 21.36.
   (g) The insurance producer may not
        (1) bind reinsurance or retrocessions on behalf of the insurer;
        (2) commit the insurer to participate in insurance or reinsurance syndicates;
        (3) appoint an agent or subagent;
        (4) jointly employ an individual who is employed by the insurer or by the managing general agent; or
        (5) delegate insurance producer authority to another person.
   (h) Except as provided under AS 21.27.560 , an agency appointment may not extend, directly or indirectly, to a client for whom the insurance producer is a producing broker or for whom insurance is exported to nonadmitted insurers under AS 21.34.
   (i) A reinsurance intermediary manager may not enter into an agency agreement with an insurance producer unless both parties are licensed under this chapter and there is in effect a written agency agreement that specifically sets out the duties, functions, powers, authority, and compensation of all parties to the agreement. The written agreement shall be kept in the permanent records of the reinsurance intermediary manager, the reinsurer, and the insurance producer, and be open to inspection by the director. A written agreement must contain the following minimum provisions:
        (1) money collected for the account of a reinsurer must be held by the insurance producer as a fiduciary;
        (2) the agreement may not be assigned in whole or in part by the insurance producer;
        (3) the agreement may not permit the insurance producer to settle claims on behalf of the reinsurer or reinsurance intermediary manager; and
        (4) the insurance producer may not
             (A) jointly employ an individual who is employed with the reinsurer or reinsurance intermediary manager; or
             (B) delegate insurance producer authority to another person.

This version of the Alaska Statutes is current through December, 2022. The Alaska Statutes were automatically converted to HTML from a plain text format. Every effort has been made to ensure their accuracy, but this can not be guaranteed. If it is critical that the precise terms of the Alaska Statutes be known, it is recommended that more formal sources be consulted. For statutes adopted after the effective date of these statutes, see, Alaska State Legislature If any errors are found, please e-mail Touch N' Go systems at E-mail. We hope you find this information useful.