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- Alaska Statutes.
- Title 21. Insurance
- Chapter 69. Organization and Corporate Procedures
- Section 230. Formation of Mutual Insurer.
previous: Section 220
. Initial Qualifications of Domestic Mutuals.
next: Section 240
. Applications For Insurance in Formation of Mutual Insurer.
AS 21.69.230. Formation of Mutual Insurer.
- (a) Before soliciting applications for insurance required under AS 21.69.220 as qualification for the original certificate
of authority, the incorporators of the proposed insurer shall file with the director a corporate surety bond in the
penalty of $20,000, in favor of the state and for the use and benefit of the state and of applicant members and
creditors of the corporation. The bond shall be conditioned as follows:
- (1) for the prompt return to applicant members of all premiums collected in advance;
- (2) for payment of all indebtedness of the corporation;
- (3) for payment of costs incurred by the state in event of legal proceedings for liquidation or dissolution of the
corporation, all in the event the corporation fails to complete its organization and secure a certificate of authority
within one year after the date of its certificate of incorporation.
- (b) In lieu of the bond, the incorporators may deposit with the director $20,000 in cash or United States government
bonds, negotiable and payable to the bearer, with a market value at all times of not less than $20,000, to be held in
trust upon the same conditions as required for the bond.
- (c) The bond filed or deposit or remaining portion thereof held under this section shall be released and discharged upon
settlement and termination of all liabilities against it.
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