Sec. 21.75.060. Organization of reciprocal insurer.

432 words·~2 min read·/ak/title-21/chapter-75/21-75-060

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Ten or more persons domiciled in this state may organize a domestic reciprocal insurer and make application to the director for a certificate of authority to transact insurance.

(b)The proposed attorney-in-fact shall fulfill the requirements of and shall execute and file with the director when applying for a certificate of authority, a declaration setting out

(1)the name of the insurer;

(2)the location of the insurer's principal office, which shall be the same as that of the attorney-in-fact and shall be maintained in this state, and the mailing address, electronic mailing address, and telephone numbers;

(3)the kinds of insurance proposed to be transacted;

(4)the names and addresses of the original subscribers;

(5)the designation and appointment of the proposed attorney-in-fact and a copy of the power of attorney;

(6)the names and addresses of the officers and directors of the attorney-in-fact, if a corporation, or its members, if a firm;

(7)the powers of the subscribers' advisory committee, and the names and terms of office of the members;

(8)that all money paid to the reciprocal insurer shall, after deducting any sum payable to the attorney-in-fact, be held in the name of the insurer and for the purposes specified in the subscribers' agreement;

(9)a copy of the subscribers' agreement;

(10)a statement that each of the original subscribers has in good faith applied for insurance of a kind proposed to be transacted and that the insurer has received from each subscriber the full premium or premium deposit required for the policy applied for, for a term of not less than six months at an adequate rate filed with and approved by the director;

(11)a statement of the financial condition of the insurer, a schedule of its assets, and a statement that the surplus as required by AS 21.75.050 is on hand;

(12)a copy of each policy, endorsement, and application form it then proposes to issue or use.

(c)The declaration shall be acknowledged by the attorney-in-fact in the manner required for the acknowledgment of deeds.

(d)The director may provide financial and technical assistance to persons who wish to establish a reciprocal insurer to provide marine insurance under this chapter.

(e)The areas the director may assist the person with under

(d)of this section include

(1)preparing the documentation necessary to form the reciprocal insurer;

(2)obtaining reinsurers for the reciprocal insurer;

(3)preparing subscriber rules and management procedures for the reciprocal insurer;

(4)financing the formation expenses of the reciprocal insurer;

(5)managing the reciprocal insurer.