reglab/statecodes huggingface dataset:
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.280. Title insurance limited producers, books, and records.

(a) In addition to any other requirement of this title, a title insurance limited producer licensee shall maintain books of accounts and records and vouchers pertaining to the business of title insurance in a manner that the director, or an authorized representative, may readily ascertain whether the licensee has complied with the provisions of this chapter.
(b) A title insurance limited producer licensee may engage in the business of handling escrows, settlements, and closings in connection with the business of title insurance; however,
(1) the licensee shall maintain a separate record of all receipts and disbursements of escrow funds and may not commingle the funds with personal funds or with funds held by the licensee in any other capacity;
(2) the licensee shall comply with the standards of solvency that the director requires; and
(3) the licensee shall submit financial statements that the director requires.
(c) In addition to any other penalty provided by law, if the director determines that a title insurance limited producer licensee has failed to comply with a provision of this section, the director may, after a hearing, revoke the limited producer license.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.290. Title insurance limited producer replies to director inquiries.

A title insurance limited producer shall reply in writing promptly, with a copy of the reply mailed to each title insurance company for which the licensee is acting, to an inquiry of the director relating to the licensee's acts as a title insurance limited producer. In addition to any other penalty provided by law, failure to reply is a ground for revocation of the license. A copy of the inquiry shall be sent by the director to each title insurance company for which the licensee is acting.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.300. Certain names prohibited.

A title insurance limited producer for a title insurance company may not adopt a firm name containing the words “title insurance”, “title guaranty”, or “title guarantee”, unless the words are followed by the words “agent” or “agency” in the same size and type as the words preceding them. This section does not apply to a title insurance company acting as an agent for another title insurance company.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.310. Rebates prohibited.

(a) A title insurer, or officer, employee, attorney, or title insurance limited producer of a title insurer, may not pay, allow, or give or offer to pay, allow, or give, directly or indirectly, as an inducement to obtaining a title insurance business, a rebate, reduction, or abatement of a rate or charge made incident to the issuance of the title insurance, a special favor or advantage, money consideration, or other inducement. A charge made incident to the issuance of the insurance is construed to include, without limitation, escrow, settlement, and closing charges.
(b) An insured named in a title insurance policy or any other person directly or indirectly connected with the transaction involving the issuance of a title insurance policy, including a mortgage lender, real estate broker, builder, or attorney, or an officer, employee, agent, representative, or solicitor of a mortgage lender, real estate broker, builder, attorney, or other person, may not knowingly receive or accept, directly or indirectly, a rebate, reduction, or abatement of a charge or premium or a special favor or advantage, or a monetary consideration or inducement.
(c) Nothing in this section prohibits
(1) the payment of fees for services actually rendered as a result of a title insurance transaction; or
(2) the payment of a commission to a legally appointed title insurance limited producer who issues the policy of title insurance.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.330. Examination of records.

If the director has reason to believe that a title insurance limited producer has violated or is in violation of AS 21.66.310, the director shall immediately examine the title insurance limited producer's books of account and record and vouchers pertaining to the business of title insurance. The title insurance limited producer shall pay to the director the cost of an examination conducted under this section.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.340. Additional penalty for rebates.

A person who violates AS 21.66.310 is liable to the state for five times the amount or value of the rebate, reduction, or abatement of any rate or charge made incident to the issuance of title insurance, or a special favor or advantage, or a monetary consideration or inducement.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.350. Division of rates.

Nothing in this chapter prohibits the division of rates and charges between or among a title insurance company and its agent, two or more title insurance companies, one or more title insurance companies and one or more title insurance limited producers, or two or more title insurance limited producers if the division of rates and charges does not constitute an unlawful rebate and is not in payment of a forwarding fee or finder's fee.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.360. Purpose of title insurance rate regulation.

The purpose of AS 21.66.370 - 21.66.400 is to promote the public welfare by regulating title insurance rates so that they are not excessive, inadequate, or unfairly discriminatory, and to authorize cooperative action between or among title insurance companies in rate making and other matters within the scope of this chapter. Nothing in this chapter is intended to prohibit or discourage uniformity in title insurance rates, rating systems, and rating plans and practices.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.370. Rate filing.

(a) A title insurance company shall file with the director its schedules of rates, manuals of classifications, rules and plans relating to schedules of rates or manuals of classification, and every modification of the schedules or manuals that it proposes to use in this state. A filing under this section must contain the effective dates of the documents filed, and indicate the character and extent of the coverage contemplated.
(b) The director shall review the filings as necessary to carry out the provisions of this chapter.
(c) Subject to the provisions of (e) of this section, a filing shall be on file for a period of 30 days before it becomes effective. The director may, upon written notice given within the 30-day period to the person making the filing, extend the waiting period for an additional period, not to exceed 30 days, in order to complete the review of the filing. Additional extensions of the waiting period may also be made with the consent of the title insurance company. Upon written application by the title insurance company, the director, after review of the application, may authorize a filing or any part of it to become effective upon the expiration of the waiting period or its extension.
(d) Except for rates filed under (e) of this section, a filing that has become effective is considered to meet the requirements of this chapter.
(e) When the director finds that a rate for a particular kind or class of risk cannot practicably be filed before it is used, or any contract or kind of title insurance, by reason of rarity or peculiar circumstances, does not lend itself to advance determination and filing of rates, the director may, under appropriate regulations, permit the rate to be used without a previous filing and waiting period.
(f) A title insurance company or title insurance limited producer may not charge a rate for a policy or contract of title insurance except in accordance with filings or rates that are in effect for the title insurance company as provided in this chapter.
(g) The director may not regulate, or require the filing of, rates paid by title insurance companies for reinsurance contracts or agreements, or policies of excess co-insurance.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.380. Justification for rates.

(a) A rate filing shall be accompanied by a statement of the title insurance company making the filing, setting out the basis on which the rate was determined, with the rates computed. A filing of rates may be justified by
(1) the experience or judgment of the title insurance company making the filing;
(2) its interpretation of any statistical data relied upon;
(3) the experience of other title insurance companies making the filings; or
(4) any other factors that the title insurance company considers relevant.
(b) The statement and justification provided for in this section shall be open to public inspection; however, information that can be used to identify the experience of a particular title insurance limited producer is confidential.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.390. Making of rates.

(a) A title insurance company shall make rates that are not excessive or inadequate, that do not unfairly discriminate between risks in this state that involve essentially the same exposure to loss and expense elements, and that give due consideration to
(1) the desirability for stability of rate structures;
(2) the necessity of assuring the financial solvency of title insurance companies in periods of economic depression by encouraging growth in assets of title insurance companies in periods of high business activity;
(3) the necessity for assuring a reasonable margin of underwriting and operating profit; and
(4) investment income.
(b) A title insurance company shall adopt basic classifications of policies or contracts of title insurance that shall be used as the basis for rate-making.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.410. Rate administration.

(a) The director may prescribe by regulation
(1) guidelines reasonably adaptable to each of the rating systems on file with the director;
(2) a uniform classification of accounts to be observed;
(3) statistics to be reported; and
(4) uniform forms for reporting this data by all title insurance companies.
(b) Regulations may be adopted by the director for the interchange of data necessary for the application of rating plans.
(c) In order to more uniformly administer rate regulations, the director and each title insurance company may exchange information and experience data with insurance supervisory officials, title insurance companies, and title insurance rating organizations in other states, and may consult with them and with each other with respect to rate making and the application of rating systems.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.450. Forms of policies and other contracts of title insurance.

(a) Each title insurance company shall file with the director all forms of title policies and other contracts of title insurance that it proposes to issue in this state before their issuance; however, in no event may a title insurance company issue a form of policy or contract before 30 days after it has been filed with the director, unless it has received earlier approval by the director. Unless the director disapproves a form of title policy or contract of title insurance within 30 days from the date of its filing, the filing is considered to be approved.
(b) Forms of title policies and other contracts of insurance, as used in this section, are considered to include preliminary reports of title, binders for insurance, commitments to insure, and policies of insurance or guaranty, together with all the terms and conditions of insurance coverage or guaranty that relate to title to any interest in property, offered by a title insurance company. Forms of title policies and other contracts of insurance shall specifically exclude
(1) reinsurance contracts or agreements;
(2) all specific defects in title that may be ascertained from an examination of the risk and excepted in such reports, binder, commitments, or policies, together with any affirmative assurances of the title insurance company with respect to the defects whether given by endorsement or otherwise; and
(3) further exceptions from coverage by reason of limitations upon the examination of the risk imposed by an applicant for insurance or through failure of an applicant for insurance to provide the data requisite to a judgment of insurability.
2023 Alaska Statutes › Title 21. Insurance › Chapter 66. Title Insurance Companies › Sec. 21.66.460. Filing required for escrow, settlement, and closing charges.

(a) Each title insurance company shall file with the director a schedule of the escrow, settlement, and closing charges that it proposes to use in this state for these services when performed in connection with the issuance of policies of title insurance. The filing must state the effective date of the schedule, which shall be not less than 30 days after the date of filing with the director.
(b) All or any part of the schedule may be amended at any time. Each amendment shall be filed with the director, and shall state its effective date, which must be not less than 30 days after the date of its filing with the director.
(c) Copies of schedules filed under this section shall be retained in each of the offices of a title insurance company in this state, and, upon request shall be furnished to the public.
(d) A title insurance company may not make or impose a charge for escrow, settlement, or closing services when performed in connection with the issuance of a policy of title insurance except in accordance with the schedule of the charges filed with the director under this section.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.010. Applicability of chapter.

This chapter applies only to domestic stock insurers and domestic mutual insurers transacting, or proposing to transact, insurance on the cash premium or legal reserve plan, except that AS 21.69.280 and 21.69.460 also apply to foreign and alien insurers.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.040. Articles of incorporation.

(a) The incorporators of a proposed domestic insurer shall deliver the triplicate originals of the articles of incorporation to the director together with the filing fees set under AS 21.06.250.
(b) When the articles of incorporation have been approved by the director, the director shall endorse the approval upon each set of the articles; except, that if the director finds that the proposed insurer would not be eligible for a certificate of authority under AS 21.09.100, the director shall refuse to approve the articles of incorporation, and shall return them to the proposed incorporators together with a written statement of the reasons for the refusal. If approved by the director, the director shall then forward the articles of incorporation, endorsed with the approval, to the incorporators. The incorporators shall immediately file one set of the articles of incorporation with the commissioner of commerce, community, and economic development, one set with the director bearing the certification of the commissioner, and the remaining set of articles shall be made a part of the corporation's record.
(c) If the director finds that the proposed articles of incorporation do not comply with law, the director shall refuse to approve them, and shall return the triplicate sets to the incorporators, together with a written statement of the reasons for the refusal to approve.
(d) The corporation shall have legal existence upon the issuance of the certificate of incorporation by the commissioner and the completion of the filings referred to in (b) of this section, but it may not transact business as an insurer until it has qualified for and received from the director a certificate of authority as provided in this title.
(e) A copy of the certificate of incorporation, certified by the commissioner, shall be admissible in all the courts of this state as prima facie evidence of incorporation.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.050. Amendment of articles of incorporation.

(a) A domestic stock insurer may amend its articles of incorporation for any lawful purpose by written authorization of the holders of a majority of the voting power of its outstanding capital stock or by affirmative vote of a majority voting at a lawful meeting of stockholders of which the notice given to stockholders included due notice of the proposal to amend.
(b) A domestic mutual insurer formed after July 1, 1966, may amend its articles of incorporation for any lawful purpose by affirmative vote of a majority of those of its members present or represented by proxy at a lawful meeting of its members of which the notice given members included notice of the proposal to amend.
(c) Upon adoption of an amendment the insurer shall make in triplicate under its corporate seal a certificate, sometimes referred to as “articles of amendment,” setting out the amendment and the date and manner of its adoption, which certificate shall be executed by the insurer's president or vice-president and secretary or assistant secretary and acknowledged by them before an officer authorized by law to take acknowledgements of deeds. The insurer shall deliver to the director the triplicate originals of the certificate, together with a filing fee set under AS 21.06.250. If the director finds that the certificate and amendments comply with law, the director shall endorse approval upon each of the triplicate originals and return them to the insurer. The insurer shall immediately file one set of the endorsed articles of amendment with the commissioner of commerce, community, and economic development, one set with the director bearing the certification of the commissioner, and retain the remaining set in the corporate records. The amendment shall be effective when the filings have been completed.
(d) If the director finds that the proposed amendment or certificate does not comply with the law, the director shall not approve it, and shall return the triplicate certificate of amendment to the insurer together with a written statement of reasons for nonapproval. The filing fee is not returnable.
(e) If an amendment of articles of incorporation would reduce the authorized capital stock of a stock insurer below the amount then outstanding, the director may not approve the amendment if there is reason to believe that the interests of policyholders or creditors of the insurer would be materially prejudiced by the reduction. If a reduction of capital stock is effectuated the insurer may require return of the original certificates of stock held by each stockholder for exchange for new certificates for the number of shares the stockholder is then entitled to in the proportion that the reduced capital bears to the amount of capital stock outstanding as of immediately before the effective date of the reduction.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.060. Solicitation permit.

(a) A person forming or proposing to form in this state an insurer, or insurance holding corporation, or stock corporation to finance an insurer or insurance production therefor, or corporation to manage an insurer, or corporation to be attorney-in-fact for a reciprocal insurer, or a syndicate for any of these purposes, may not advertise, or solicit or receive any funds, agreement, stock subscription, or membership on account thereof unless the person has applied for and has received from the director a solicitation permit.
(b) A person determined by the director, following an appropriate hearing as provided in AS 21.06.170 - 21.06.230, to have violated this section is subject to a civil penalty of not more than $25,000.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.070. Application for solicitation permit.

To apply for a solicitation permit the person shall
(1) file with the director a request showing
(A) the name, type, and purpose of insurer, corporation, or syndicate proposed to be formed;
(B) the names, addresses, and business records of each person associated or to be associated in the formation of the proposed insurer, corporation, or syndicate;
(C) the full disclosure of the terms of all understandings and agreements existing or proposed among persons so associated relative to the proposed insurer, corporation, or syndicate, or its formation;
(D) the plan according to which solicitations are to be made;
(E) additional information that the director may reasonably require;
(2) file with the director
(A) the original and copies in triplicate of the proposed articles of incorporation or syndicate agreement; or, if the proposed insurer is a reciprocal, original and duplicate of the proposed subscriber's agreement and attorney-in-fact agreement;
(B) the original and duplicate copy of proposed bylaws;
(C) a copy of the security proposed to be issued and copy of the application or subscription agreement therefor;
(D) a copy of the insurance contract proposed to be offered and copy of the application therefor;
(E) a copy of the prospectus, advertising, or literature proposed to be used;
(F) a copy of the proposed form of escrow agreement required;
(3) deposit with the director the fees required by law to be paid for the application, for filing of the articles of incorporation of an insurer, for filing the subscribers' agreement and attorney-in-fact agreement if the proposed insurer is a reciprocal, for the solicitation permit, if granted, and for filing articles of incorporation with the commissioner.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.080. Procedure upon application.

(a) The director shall expeditiously examine the application for a solicitation permit and make an investigation if considered necessary. If the director finds that (1) the application is complete; (2) the documents filed with it are equitable in terms and proper in form; and (3) the agreements made or proposed are equitable to present and future shareholders, subscribers, members, or policyholders, the director shall give notice to the applicant that the director will issue a solicitation permit, stating the terms to be contained in it, upon the filing of the bond required by AS 21.69.140.
(b) If the director does not so find, or if the director finds that any of the persons named in the application as being associated or to be associated in the formation of the insurer, corporation, or syndicate are untrustworthy, the director shall give notice to the applicant that the permit will not be granted, stating the grounds therefor, and shall refund to the applicant all sums deposited except the application fee.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.090. Issuance of permit.

Upon the filing of the bond required by AS 21.69.140 after notice by the director, the director shall
(1) file the articles of incorporation of the proposed incorporated insurer or other corporation with the commissioner;
(2) issue to the applicant a solicitation permit.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.100. Duration of permit.

Every solicitation permit issued by the director must
(1) be for a period of not over two years, subject to the right of the director to grant a reasonable extension for good cause;
(2) state the securities for which subscriptions are to be solicited, the number, classes, par value, and selling price thereof, or identify the insurance contract for which applications and advance premiums or deposits are to be solicited;
(3) limit the portion of funds received on account of stock or syndicate subscriptions, if any are proposed to be taken, which may be used for promotion and organization expenses to an amount the director considers adequate, but in no event to exceed 15 percent of the funds as and when actually received;
(4) if to be a mutual or reciprocal insurer, limit the portion of funds received on account of applications for insurance that may be used for promotion or organization expenses to a reasonable commission upon the funds, giving consideration to the kind of insurance and policy involved and to the costs incurred by insurers generally in the production of similar business, and provide that no commission shall be considered to be earned or be paid until the insurer has received its certificate of authority and the policies applied for and upon which the commission is to be based, have been actually issued and delivered;
(5) contain other information required by this chapter or reasonable conditions relative to accounting and reports or otherwise that the director considers necessary.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.110. Permit as inducement prohibited.

The granting of a solicitation permit is permissive only and does not constitute an endorsement by the director of any person or thing related to the proposed insurer, corporation, or syndicate and the existence of the permit may not be advertised or used as an inducement in a solicitation. The substance of this section in bold faced type not less than 10 point shall be printed at the top of each solicitation permit.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.130. Modification, revocation of permit.

(a) The director may, for cause, modify a solicitation permit, or may, after a hearing, revoke a solicitation permit for violation of a provision of this title, or of the terms of the permit, or of a proper order of the director, or for misrepresentation.
(b) The director shall revoke a solicitation permit if requested in writing by a majority of the syndicate members, or by a majority of the incorporators and two-thirds of the subscribers to stock or applicants for insurance in the proposed incorporated insurer or corporation, or if the director is requested by a majority of the subscribers of a proposed reciprocal insurer.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.140. Bond.

(a) Except as provided in AS 21.69.230, the director may not issue a solicitation permit until the person applying for it files with the director a corporate surety bond in the penalty of $10,000, in favor of the state and for the use and benefit of the state and of subscribers and creditors of the proposed organization.
(b) The bond shall be conditioned upon the payment of costs incurred by the state in the event of a legal proceeding for liquidation or dissolution of the proposed organization before completion of organization or if a certificate of authority is not granted; and upon a full accounting for funds received until the proposed insurer has been granted its certificate of authority, or until the proposed corporation or syndicate has completed its organization as defined in the solicitation permit.
(c) In lieu of filing the bond, the person may deposit with the director $10,000 in cash or in United States government bonds at par value, to be held in trust upon the same conditions as required for the bond.
(d) The director may waive the requirement for a bond or deposit in lieu of a bond if the permit provides that
(1) the proposed securities are to be distributed solely and finally to those few persons who are the active promoters intimate to the formation of the insurer, or other corporation or syndicate; or
(2) the securities are to be issued in connection with subsequent financing as provided in AS 21.69.200.
(e) A bond filed or deposit or remaining portion of a bond held under this section shall be released and discharged upon settlement or termination of all liabilities against it.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.150. Escrow of funds.

(a) All funds received under a solicitation permit shall be deposited and held in escrow in a bond or trust company under an agreement approved by the director. Funds deposited may not be withdrawn, except
(1) for the payment of promotion and organization expenses as authorized by the solicitation permit;
(2) for the purpose of making a deposit with the director required for the issuance of a certificate of authority to an insurer;
(3) if the proposed organization is not to be an insurer, upon completion of payments on stock or syndicate subscriptions made under the solicitation permit and deposit or appropriation of the funds to the purposes specified in the solicitation permit; or
(4) for making refunds as provided in AS 21.69.190.
(b) When the director has issued a certificate of authority to an insurer the funds remaining in escrow for its account shall be released to the insurer.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.160. Liability of organizers.

(a) The incorporators of an insurer or other corporation, or the persons proposing to form a reciprocal insurer, or a syndicate, shall be jointly and severally liable for its debts or liabilities until it has secured a certificate of authority, if an insurer, or has completed its organization if a corporation other than an insurer or a syndicate.
(b) Any portion of funds received on account of stock or syndicate subscriptions which is allowed under the solicitation permit, may be applied concurrently toward the payment of promotion and organization expense theretofore incurred.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.170. Payment for subscriptions.

(a) A proposed stock insurer, corporation, or syndicate may not issue a share of stock or participation agreement except for payment in cash or in securities eligible for investment of funds of insurers. Shares or an agreement may not be issued until all subscriptions received under the solicitation permit have been fully paid, or, if an insurer, until a certificate of authority has been issued to it.
(b) Every subscription contract to shares of a stock insurer or other corporation calling for payment in installments, together with all amounts paid, may be forfeited at the option of the corporation, upon failure to make good a delinquency in an installment upon not less than 45 days notice in writing, and every such contract must so provide.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.180. Insurance applications.

All applications for insurance obtained in forming a mutual or reciprocal insurer must provide that
(1) issuance of the policy is contingent upon completion of organization of the insurer and issuance to it of a certificate of authority;
(2) the prepaid premium or deposit will be refunded in full to the applicant if the organization is not completed and certificate of authority issued before the solicitation permit's date of expiration;
(3) the agreement for insurance is not effective until a policy has been issued under it.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.190. Failure to complete organization or to qualify.

The director shall withdraw all funds held in escrow and refund to subscribers or applicants all sums paid in on stock or syndicate subscriptions, less that part of the sums paid in on subscriptions as has been allowed and used for promotion and organization expenses, and all sums paid in on insurance applications, and shall dissolve the proposed insurer, corporation or syndicate if
(1) the proposed insurer, corporation, or syndicate fails to complete its organization and obtain full payment for subscriptions and applications, and, if an insurer, it fails to secure its certificate of authority, all before expiration of the solicitation permit; or
(2) the director revokes the solicitation permit.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.200. Subsequent financing.

(a) A domestic insurer, or insurance holding corporation, or stock corporation for financing operations of a mutual insurer, or attorney-in-fact corporation of a reciprocal insurer, after (1) it has received a certificate of authority, if an insurer; or (2) it has completed its initial organization and financing if a corporation other than an insurer, may not solicit or receive funds in exchange for a new issue of its corporate securities, other than through a stock dividend, until it has applied to the director for, and has been granted, a solicitation permit.
(b) The director shall issue a permit unless the director finds that
(1) the funds proposed to be secured are excessive in amount for the purpose intended;
(2) the proposed securities or the manner of their distribution are inequitable; or
(3) the issuance of the securities would jeopardize the interests of policyholders or the holders of other securities of the insurer or corporation.
(c) A solicitation permit granted by the director shall be for the duration, and must contain the terms and be issued upon the conditions that the director may reasonably specify or require.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.210. Penalty for exhibiting false accounts, etc.

A person determined by the director, following an appropriate hearing as provided in AS 21.06.170 - 21.06.230, to have knowingly exhibited, with intent to deceive, a false account, document, or advertisement, relative to the affairs of an insurer, or of a corporation or syndicate of the kind enumerated in AS 21.69.060, formed or proposed to be formed, is subject to a civil penalty of not more than $25,000.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.220. Initial qualifications of domestic mutuals.

(a) When newly organized, a domestic mutual insurer may be authorized to transact any one of the kinds of insurance listed in the schedule contained in (b) of this section.
(b) When applying for an original certificate of authority, the insurer must be otherwise qualified under this title, and must have received and accepted bona fide applications as to substantial insurable subjects for insurance coverage of a substantial character of the kind of insurance proposed to be transacted, must have collected in cash the full premium at a rate not less than that usually charged by stock insurers for comparable coverages, must have surplus funds on hand and deposited as of the date the insurance coverages are to become effective, or, in lieu of the applications, premiums, and surplus, may deposit surplus, all in accordance with that part of the following schedule that applies to the one kind of insurance the insurer proposes to transact:
(A)(B)(C)(D)
Kind of InsuranceMinimum No. of applicants AcceptedMinimum No. of Subjects CoveredMinimum Premium Collected
Life (1)500500annual
Health (2)500500quarterly
Property (3)100250annual
Casualty (4)250500annual
With Workers'
Compensation2501,500quarterly
Marine, Wet
Marine, and
Transportation5050annual
(E)(F)(G)(H)
Minimum Amount of Insurance Each SubjectMaximum Amount of Insurance Subject(5)Minimum Surplus Funds Deposited(6)Deposit of Surplus in Lieu of(6)
$1,000$ 2,500$ 800,000$ 800,000
$ 10$ 25$ 800,000$ 800,000
(weekly(weekly
indem.)indem.)
$1,000$ 3,000$ 600,000$ 600,000
$1,000$10,000$1,000,000$1,000,000
$1,000$10,000$1,000,000$1,000,000
$1,000$25,000$1,000,000$1,000,000
(c) The following provisos are respectively applicable to the schedule in (b) of this section and provisions as indicated by like numerals appearing in the schedule:
(1) group insurance or term policies for terms of less than 10 years may not be included;
(2) group, blanket, or family plans of insurance may not be included; in lieu of weekly indemnity a like premium value in medical, surgical and hospital benefits may be provided; any accidental death or dismemberment benefit provided may not exceed $2,500;
(3) only insurance of the owner's interest in real property may be included;
(4) must include insurance of legal liability for bodily injury and property damage, to which the maximum and minimum insured amounts apply;
(5) the maximums provided for in column (F) are net of applicable reinsurance;
(6) the deposit of surplus in the amount specified in columns (G) and (H) must thereafter be maintained unimpaired; the deposit is subject to the provisions of AS 21.24.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.230. Formation of mutual insurer.

(a) Before soliciting applications for insurance required under AS 21.69.220 as qualification for the original certificate of authority, the incorporators of the proposed insurer shall file with the director a corporate surety bond in the penalty of $20,000, in favor of the state and for the use and benefit of the state and of applicant members and creditors of the corporation. The bond shall be conditioned as follows:
(1) for the prompt return to applicant members of all premiums collected in advance;
(2) for payment of all indebtedness of the corporation;
(3) for payment of costs incurred by the state in event of legal proceedings for liquidation or dissolution of the corporation, all in the event the corporation fails to complete its organization and secure a certificate of authority within one year after the date of its certificate of incorporation.
(b) In lieu of the bond, the incorporators may deposit with the director $20,000 in cash or United States government bonds, negotiable and payable to the bearer, with a market value at all times of not less than $20,000, to be held in trust upon the same conditions as required for the bond.
(c) The bond filed or deposit or remaining portion thereof held under this section shall be released and discharged upon settlement and termination of all liabilities against it.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.240. Applications for insurance in formation of mutual insurer.

(a) Upon receipt of the director's approval of the bond or deposit as provided in AS 21.69.230, the directors and officers of the proposed domestic mutual insurer may commence solicitation of the requisite applications for insurance policies which they may accept, and may receive deposits of premiums on them.
(b) The applications must be in writing signed by the applicant, covering subjects of insurance resident, located, or to be performed in this state.
(c) The applications must provide that
(1) issuance of the policy is contingent upon the insurer qualifying for and receiving a certificate of authority;
(2) no insurance is in effect unless and until the certificate of authority has been issued;
(3) the prepaid premium or deposit, and membership or policy fee, if any, shall be refunded in full to the applicant if organization is not completed and the certificate of authority is not issued and received by the insurer before a specified reasonable date which date shall be not later than one year after the date of the certificate of incorporation.
(d) All qualifying premiums collected shall be in cash.
(e) Solicitation for qualifying applicants for insurance shall be by licensed agents of the corporation, and the director shall, upon the corporation's application, issue temporary agent's licenses expiring on the date specified under (c)(3) of this section to individuals qualified for a resident agent's license except as to the taking or passing of an examination. The director may suspend or revoke a license for any of the causes and under the same procedures applicable to suspension or revocation of licenses of agents in general under AS 21.27.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.250. Formation of mutuals.

(a) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance shall be deposited in trust in a bank or trust company in this state under a written trust agreement consistent with this section and AS 21.69.240(c)(3). The corporation shall file an executed copy of the trust agreement with the director.
(b) Upon issuance to the corporation of a certificate of authority as an insurer for the kind of insurance for which the applications were solicited, all funds so held in trust shall become the funds of the insurer, and the insurer, shall thereafter in due course issue and deliver its policies for which premiums had been paid and accepted. The insurance provided by the policies shall be effective as of the date of the certificate of authority or thereafter as provided by the respective policies.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.260. Failure to qualify.

If the proposed domestic insurer fails to complete its organization and to secure its original certificate of authority within one year from and after the date of its certificate of incorporation, its corporate powers shall cease, and the director shall return or cause to be returned to the persons entitled thereto all advance deposits or payments of premiums held in trust under AS 21.69.250.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.270. Additional kinds of insurance.

A domestic mutual insurer, after being authorized to transact one kind of insurance, may be authorized by the director to transact the additional kinds of insurance that are permitted under AS 21.09.060 while otherwise in compliance with this title and while maintaining unimpaired surplus funds in an amount not less than the amount of paid-in capital stock required of a domestic stock insurer transacting like kinds of insurance, subject further to the additional expendable surplus requirements of AS 21.09.080 applicable to such a stock insurer.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.280. Membership in mutuals.

(a) Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer with all rights and obligations of the membership, and the policy must so specify.
(b) A person, government or governmental agency, state or political subdivision thereof, public or private corporation, board, association, firm, estate, trustee, or fiduciary may be a member of a domestic, foreign, or alien mutual insurer. An officer, stockholder, trustee, or legal representative of any such corporation, board, association, or estate may be recognized as acting for or on its behalf for the purpose of the membership, and is not personally liable upon a contract of insurance for acting in the representative capacity.
(c) A domestic corporation may participate as a member of a mutual insurer as an incidental purpose for which the corporation is organized.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.290. Bylaws of mutual.

(a) A domestic mutual insurer shall have bylaws for the governing of its affairs. The initial board of directors of the insurer shall adopt original bylaws, subject to the approval of the insurer's members at the next succeeding meeting. The members shall have power to make, modify, and revoke bylaws.
(b) The bylaws must provide
(1) that each member is entitled to one vote upon each matter coming to a vote at meetings of members; or to more votes in accordance with a reasonable classification of members as set out in the bylaws and based upon the amount of insurance in force, number of policies held, or upon the amount of the premiums paid by the member, or upon other reasonable factors; a member shall have the right to vote in person or by a written proxy; a proxy may not be made irrevocable or for longer than a reasonable period of time;
(2) for election of directors by the members; and the number, qualifications, terms of office, and powers of directors;
(3) the time, notice, quorum, and conduct of annual and special meetings of members and voting at meetings; the bylaws may provide that the annual meeting shall be held at a place, date, and time to be set out in the policy and without giving other notice of the meeting;
(4) the number, designation, election, terms, and powers and duties of the respective corporate officers;
(5) for deposit, custody, disbursement, and accounting as to corporate funds;
(6) for other reasonable provisions customary, necessary, or convenient for the management or regulation of its corporate affairs.
(c) A provision in the bylaws for determining a quorum of members at a meeting of less than a majority of all the insurer's members is not effective unless approved by the director. This subsection does not affect any other provision of law requiring a vote of a larger percentage of members for a specified purpose.
(d) The insurer shall promptly file with the director a copy, certified by the insurer's secretary, of its bylaws and of every modification or addition. The director shall disapprove a bylaw provision considered by the director to be unlawful, unreasonable, inadequate, unfair, or detrimental to the proper interests or protection of the insurer's members or a class of them. The insurer may not, after receiving written notice of the disapproval and during the existence thereof, effectuate the disapproved bylaw provision.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.300. Bylaws of stock insurer.

A bylaw adopted at a meeting of stockholders of a domestic insurer may not be modified or revoked except by the stockholders at a subsequent meeting unless the bylaw as adopted or amended by the stockholders grants authority to the board of directors to revoke or modify bylaw provisions; but the board of directors may not revoke or modify a bylaw relating to the qualifications, election, terms, or compensation of directors, or to the calling or notice of meetings of stockholders. A revocation or modification of bylaws made by the directors under this provision shall be presented at the next meeting of stockholders for the information of the stockholders.
2023 Alaska Statutes › Title 21. Insurance › Chapter 69. Organization and Corporate Procedures › Sec. 21.69.340. Directors.

(a) The affairs of every domestic insurer shall be managed by the number of directors fixed in the insurer's bylaws, which shall not be less than five or more than 21 directors.
(b) Directors must be elected at the time and place, and for the terms, not exceeding three years, provided in a domestic insurer's bylaws. Unless the bylaws provide otherwise, a director is not required to be a member or stockholder of the insurer.
(c) The term of a director extends until a successor has been elected and has qualified.