Alaska Statutes: AS 21.69.220. Initial Qualifications of Domestic Mutuals.

Alaska Statutes. Title 21. Insurance Chapter 69. Organization and Corporate Procedures Section 220. Initial Qualifications of Domestic Mutuals.

previous: Section 210. Penalty For Exhibiting False Accounts, Etc.
next: Section 230. Formation of Mutual Insurer.

AS 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:

 -------------------------------------------------------------

 -------------------------------------------------------------

      (A)              (B)            (C)              (D)

                   Minimum No.    Minimum No.

                        of             of            Minimum

    Kind of         Applicants      Subjects         Premium

   Insurance         Accepted       Covered         Collected

-------------------------------------------------------------

 -------------------------------------------------------------

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

 -------------------------------------------------------------

 -------------------------------------------------------------

      (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)

-------------------------------------------------------------

 -------------------------------------------------------------

  $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.

This version of the Alaska Statutes is current through December, 2007. 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.