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- Alaska Statutes.
- Title 21. Insurance
- Chapter 69. Organization and Corporate Procedures
- Section 440. Levy of Contingent Liability.
previous: Section 430
. Contingent Liability of Mutual Members.
next: Section 450
. Enforcement of Contingent Liability.
AS 21.69.440. Levy of Contingent Liability.
- (a) If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus
required to be maintained by it by this title for authority to transact the kinds of insurance being transacted and the
deficiency is not cured from other sources, its directors shall levy an assessment only upon its members who held
policies providing for contingent liability at any time within the 12 months preceding the date notice of the
assessment was mailed to them, and the members shall be liable to the insurer for the amount assessed.
- (b) The assessment shall be for the amount required to cure the deficiency and to provide a reasonable amount of working
funds above the minimum amount of surplus, but the working funds so provided may not exceed five percent of the
insurer's liabilities as of the date as on which the amount of the deficiency was determined.
- (c) In levying an assessment upon a policy providing for contingent liability, the assessment shall be computed on the
basis of the premiums earned on the policy during the period to which the assessment relates.
- (d) A member may not have an offset against an assessment for which the member is liable, on account of a claim for
unearned premium or loss payable.
- (e) As to life insurance, any part of the assessment upon a member that remains unpaid following notice of assessment,
demand for payment, and lapse of a reasonable waiting period as specified in the notice, may, if approved by the
director as being in the best interests of the insurer and its members, be secured by placing a lien upon the cash
surrender values and accumulated dividends held by the insurer to the credit of the member.
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