Advertising with us can place you in front of thousands of visitors a day. Learn more!
- Alaska Statutes.
- Title 21. Insurance
- Chapter 75. Reciprocal and Cooperative Insurers
- Section 270. Financial Impairment; Determination of Insolvency.
previous: Section 260
. Merger or Conversion.
next: Section 280
. [Renumbered as AS 21.75.900
AS 21.75.270. Financial Impairment; Determination of Insolvency.
- (a) If the assets of a reciprocal insurer are at any time insufficient to discharge its liabilities, other than a
liability on account of funds contributed by the attorney-in-fact or others, and to maintain the required surplus, its
attorney-in-fact shall immediately make up the deficiency or levy an assessment upon the subscribers for the amount
needed to make up the deficiency; but subject to the limitation set out in the subscriber's agreement.
- (b) If the attorney-in-fact fails to make up the deficiency or to make the assessment within 30 days after the director
orders the attorney-in-fact to do so, or if the deficiency is not fully made up within 60 days after the date the
assessment was made, the insurer shall be considered insolvent and shall be proceeded against as authorized by this
- (c) If liquidation of an insurer is ordered, an assessment shall be levied upon the subscriber for an amount, subject to
limits as provided by this chapter, that the director determines to be necessary to discharge all liabilities of the
insurer, exclusive of any funds contributed by the attorney-in-fact or other persons, but including the reasonable cost
of the liquidation.
- (d) If liquidation of a domestic reciprocal insurer is ordered, the receiver appointed under the order has a right to
recover on behalf of the reciprocal insurer a payment in the form of a bonus, termination settlement, or extraordinary
lump-sum compensation adjustment made by the reciprocal insurer or its subscribers to the attorney-in-fact if the
distribution or payment is made during the 12 months preceding the order of liquidation, unless it can be shown that
the payment was lawful and reasonable and that the reciprocal insurer did not know and, using due diligence, could not
have known that the distribution might adversely affect the ability of the reciprocal insurer to fulfill its
subscriber's contractual obligation.
All content © 2008 by Touch
N' Go/Bright Solutions, Inc.
Note to HTML Version:
This version of the Alaska Statutes is current through December, 2007. The Alaska Statutes were automatically converted to HTML from a plain text format. Every effort has been made to ensure their accuracy, but this can not be guaranteed. If it is critical that the precise terms of the Alaska Statutes be known, it is recommended that more formal sources be consulted. For statutes adopted after the effective date of these statutes, see, Alaska State Legislature
If any errors are found, please e-mail Touch N' Go systems at E-mail. We
hope you find this information useful.