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- Alaska Statutes.
- Title 21. Insurance
- Chapter 24. Administration of Deposits
- Section 130. Duration and Release of Deposit.
previous: Section 120
. Deficiency of Deposit.
next: Chapter 25
. Classes of Insurance
AS 21.24.130. Duration and Release of Deposit.
- (a) Each deposit made in this state by an insurer under this title, including assets and securities held in another state
under custodial arrangements permitted by AS 21.24.040
(c), shall be held for as long as there is any outstanding liability of the insurer as to which the deposit was
required. Each deposit required under AS 21.09.270
shall be held for so long as the basis of the retaliation exists.
- (b) Upon the request of a domestic insurer, the director shall return to the insurer the whole or any portion of the
assets and securities of the insurer held on deposit when the director is satisfied that the assets and securities to
be returned are subject to no liability and are no longer required to be held by any provision of law or purposes of
the original deposit. If the insurer has reinsured all of its outstanding risks in another insurer or insurers
authorized to transact insurance in this state, the director shall deliver the assets and securities to the insurer or
insurers assuming the risks, upon written notice to the director by the domestic insurer that the assets and securities
have been assigned, transferred, and set over to the reinsuring insurer or insurers, which notice shall be accompanied
by a verified copy of the assignment, transfer, or conveyance.
- (c) The director shall return to a foreign insurer any deposit made in this state by the insurer, when (1) the insurer has
ceased transacting insurance in this state, or in the United States, and the insurer is not subject to liability in
this state on account of which the deposit was held; (2) the deposit is no longer required by a provision of law; (3)
the insurer, during its solvency, has made a similar deposit in another state and has filed with the director the
certificate of evidence thereof, under the conditions provided for in AS 21.09.090(b)(1) or (2). Upon the effectuation of a merger
or consolidation of an insurer that has made a deposit in this state, the director shall return the deposit to the
resulting or surviving corporation, or to any person it may designate for that purpose, provided that the resulting or
surviving corporation is or becomes authorized to transact an insurance business in this state.
- (d) If the insurer is subject to delinquency proceedings as defined in AS 21.78, upon the order of a court of competent jurisdiction, the
director shall yield the assets and securities held on deposit under AS 21.09.090 (b) to the receiver, conservator, rehabilitator, or
liquidator of the insurer, or to any other properly designated official or officials who succeed to the management and
control of the insurer's assets. The director may release the deposit directly to the guaranty fund of which the insurer is a member if
the right to receive all or a portion of the deposit is assigned to the guaranty fund.
- (e) A release of deposited assets may not be made except upon application to and the written order of the director. The
director is not personally liable for a release of a deposit or part thereof made in good faith.
- (f) If an insurer is found to be insolvent by a proceeding under AS 21.78 or by a court of competent jurisdiction in another state, the director shall
take control of the insurer's deposit made under AS 21.09.090(b). The deposit assets shall be released, at the discretion of
the director, to the Alaska Insurance Guaranty Association (AS 21.80) to reimburse for a valid loss and loss expense claim payment made by the
association that is within the purpose of the deposit. The director shall pay the remaining deposit assets to the receiver, conservator,
rehabilitator, or liquidator of the insurer, or to another properly designated official who succeeds to the management and control of
the insurer's assets, after the director determines that all loss and loss expense liabilities have been paid that were incurred on the
insurer's policies written in this state for which the deposit was required.
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