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- Alaska Statutes.
- Title 21. Insurance
- Chapter 69. Organization and Corporate Procedures
- Section 620. Reinsurance For Mutual Insurers.
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. Reinsurance For Stock Insurers.
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. Mutual Member's Share of Assets On Liquidation.
AS 21.69.620. Reinsurance For Mutual Insurers.
- (a) A domestic mutual insurer may reinsure a portion or all of its business in force or a portion or all of a major class
of its business with another insurer, stock or mutual, by a reinsurance agreement. A reinsurance agreement shall be
filed with the director within 30 days after all parties have signed the agreement. The agreement filed with the
director is designated as confidential for the purposes of AS 21.06.060. A domestic mutual insurer may reinsure a
portion or all of its insurance in force or a major class of its insurance with another insurer by an agreement of
assumption reinsurance. An agreement of assumption reinsurance is not effective unless filed with and approved in
writing by the director after a hearing.
- (b) The director shall approve the agreement within a reasonable time after filing if the director finds it to be fair and
equitable to each domestic insurer involved, and that the reinsurance, if effectuated, would not substantially reduce
the protection or service to its policyholders. If the director does not approve, the director shall notify each
insurer involved in writing specifying the reasons.
- (c) The plan and agreement for the reinsurance must be approved by a vote of not less than two-thirds of each domestic
mutual insurer's members voting on the plan or agreement at meetings of members called for the purpose, after
reasonable notice and under procedures that the director may approve. If a life insurer, the right to vote may be
limited to members whose policies are other than term or group policies, and have been in effect for more than one
- (d) If the agreement is for reinsurance in a stock insurer of all or substantially all of the insurance in force of a
mutual insurer, the agreement must provide for payment in cash to each member of the insurer entitled thereto of the
member's equity in the business reinsured as determined under a fair formula approved by the director, as based upon
the reserves, assets, whether or not "admitted" assets, and surplus, if any, of the mutual insurer to be taken over by
the stock insurer.
- (e) A director, officer, agent, or employee of an insurer party to the reinsurance, or any other person, may not receive a
fee, commission, or other valuable consideration for aiding, promoting, or assisting therein except as set out in the
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