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- Alaska Statutes.
- Title 21. Insurance
- Chapter 59. Automobile Service Corporations
- Section 50. Reserves.
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AS 21.59.050. Reserves.
- (a) An automobile service corporation shall establish and maintain unimpaired reserves as follows:
- (1) a reserve in an amount not less than all legal obligations of the corporation, other than claims originating under
subscriber's contracts, due but unpaid;
- (2) a reserve equal to not less than the amount necessary by reasonable estimate to pay all claims incurred under
subscriber's contracts but currently unpaid, and including a reasonable additional amount to cover claims incurred but
not reported to the corporation at the time of determination of the corporation's financial condition; and
- (3) a reserve equal to 50 percent of all sums charged and received by the corporation during the calendar period covered
by the financial statement, on account of indemnity benefits provided in subscriber's contracts for terms for which
premium was last paid and unexpired at the date of the financial statement.
- (b) The reserves required under (a) of this section constitute a liability of the corporation in a determination of its
- (c) Instead of the reserves required by (a) of this section and the bond required by AS 21.59.030
(2), the automobile service corporation may file a bond in the amount of $250,000.
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