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- Alaska Statutes.
- Title 21. Insurance
- Chapter 75. Reciprocal and Cooperative Insurers
- Section 230. Nonassessable Policies.
previous: Section 220
. Aggregate Liability.
next: Section 240
. Distribution of Savings.
AS 21.75.230. Nonassessable Policies.
- (a) If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital and surplus
required of a domestic stock insurer authorized to transact like kinds of insurance, upon application of the
attorney-in-fact and as approved by the subscribers' advisory committee, the director shall issue a certificate
authorizing the insurer to extinguish the contingent liability of subscribers under its policies then in force in this
state, and to omit provisions imposing contingent liability in all policies delivered or issued for delivery in this
state for as long as all the surplus remains unimpaired.
- (b) Upon impairment of the surplus, the director shall immediately revoke the certificate. The revocation shall not
render subject to contingent liability a policy then in force and for the remainder of the period for which the premium
has theretofore been paid; but after the revocation a policy may not be issued or renewed without providing for
contingent assessment liability of the subscriber.
- (c) The director may not authorize a domestic reciprocal insurer to extinguish the contingent liability of any of its
subscribers or in any of its policies to be issued, unless it qualifies to and does extinguish the liability of all its
subscribers and in all the policies for all kinds of insurance transacted by it. Except, that if required by the laws
of another state in which the insurer is transacting insurance as an authorized insurer, the insurer may issue policies
providing for the contingent liability of those subscribers which may acquire the policies in that state, and need not
extinguish the contingent liability applicable to policies theretofore in force in that state.
- (d) Notwithstanding (a) - (c) of this section, a reciprocal insurer that provides marine insurance may issue policies that
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