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- Alaska Statutes.
- Title 21. Insurance
- Chapter 78. Rehabilitation and Liquidation
- Section 325. Recovery From Affiliates.
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AS 21.78.325. Recovery From Affiliates.
- (a) If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under the
order has a right to recover on behalf of the insurer (1) from a parent corporation or holding company or person or
affiliate who otherwise controlled the insurer, the amount of distributions, other than a distribution of shares of the
same class of stock, paid by the insurer on the insurer's capital stock; or (2) a payment in the form of a bonus,
termination settlement, or extraordinary lump sum salary adjustment made by the insurer or the insurer's subsidiary to
a director, officer, or employee. If the distribution or payment is made during the 12 months preceding the petition
for liquidation, conservation, or rehabilitation, the distribution or payment is subject to the limitations of (b) -
(d) of this section.
- (b) A distribution may not be recovered if the parent or affiliate shows that when paid the distribution was lawful and
reasonable and that the insurer did not know and could not reasonably have known that the distribution might adversely
affect the ability of the insurer to fulfill its contractual obligations.
- (c) A person who was a parent corporation or holding company or a person who otherwise controlled the insurer or affiliate
at the time the distribution was paid is liable up to the amount of the distribution or payment that the person
received. If two or more persons are liable with respect to the same distribution, the persons are jointly and
- (d) The maximum amount recoverable under this section is the amount needed in excess of all other available assets of the
impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse
any guaranty funds that expended funds or incurred expenses or may expend funds or may incur expenses in connection
with the impaired or insolvent insurer.
- (e) To the extent that a person liable under (c) of this section is insolvent or otherwise fails to pay a claim due under
(c) of this section, the person's parent corporation or holding company or person who otherwise controlled the parent
corporation or holding company at the time the distribution was paid is jointly and severally liable for the resulting
deficiency in the amount recovered from the parent corporation or holding company or the person who otherwise
controlled the parent corporation or holding company.
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