Alaska Statutes Title 21, Chapter 21.69 - 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...
• Sec. 21.69.020 Applicability of General Corporation Statutes.
  The applicable laws of this state as to domestic corporations formed for profit apply to domestic stock insurers and domestic mutual insurers, except where...
• Sec. 21.69.030 Incorporation.
  (a) This section applies to stock and mutual insurers incorporated in this state after July 1, 1966.(b) Five or more individuals, none of whom...
• 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...
• 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...
• 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...
• 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,...
• 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...
• 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...
• 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...
• 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...
• Sec. 21.69.120 Solicitors' Licenses.
  Solicitation for sale of securities to members of the public under a solicitation permit shall be made only by individuals licensed under the provisions...
• 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...
• 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...
• 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...
• 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...
• 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...
• 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...
• 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,...
• 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...
• 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...
• 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...
• 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...
• 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...
• 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...
• 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...
• 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...
• 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...
• 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...
• 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...
• Sec. 21.69.310 Meetings of Stockholders or Members.
  (a) Meetings of stockholders or members of a domestic insurer shall be held in the city or town of its principal office or place...
• Sec. 21.69.320 Proxies.
  The director shall adopt regulations concerning proxies, consents and authorizations in respect to securities issued by domestic insurance companies. The regulations adopted shall substantially...
• Sec. 21.69.330 Corrupt Practices.
  The director shall adopt regulations regarding the conduct of meetings of shareholders and members of an insurer and the purchase, sale, and bartering of...
• 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...
• Sec. 21.69.350 Participation of Policyholders in Election of Directors.
  The bylaws of a domestic stock life insurer may provide a plan for its policyholders to participate with stockholders in the election of its
• Sec. 21.69.360 Bond of Officers of Mutual.
  (a) The president, secretary, and treasurer of a mutual insurer shall each file with the director and thereafter maintain in force as long as...
• Sec. 21.69.370 Prohibited Pecuniary Interest of Officials.
  (a) An officer or director, or a member of a committee or an employee of a domestic insurer who is charged with the duty...
• Sec. 21.69.380 Management and Exclusive Agency Contracts.
  (a) A domestic insurer may not make a contract granting a person or permitting a person to enjoy in fact the management of the...
• Sec. 21.69.390 Home Office and Records.
  (a) Each domestic insurer shall have and maintain a place of business in this state, and shall keep in this state and in its...
• Sec. 21.69.400 Vouchers for Expenditures.
  (a) An insurer may not make a disbursement of $100 or more, unless evidenced by a voucher correctly describing the consideration for the payment...
• Sec. 21.69.410 Agreement Not to Sell Property Prohibited.
  An insurer may not enter into an agreement to withhold from sale any of its property. Disposition of an insurer's property shall be at...
• Sec. 21.69.420 Solicitations in Other States.
  (a) A domestic insurer may not knowingly solicit insurance business in a reciprocating state in which it is not then licensed as an authorized...
• Sec. 21.69.430 Contingent Liability of Mutual Members.
  (a) Each member of a domestic mutual insurer shall, except as provided with respect to nonassessable policies, have a contingent liability, pro rata and...
• Sec. 21.69.440 Levy of Contingent Liability.
  (a) If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required...
• Sec. 21.69.450 Enforcement of Contingent Liability.
  (a) An assessment made by an insurer under AS 21.69.440 or 21.69.540 shall be considered to be prima facie correct. The amount of the...
• Sec. 21.69.460 Nonassessable Policies, Mutual Insurers.
  (a) When possessing surplus funds in an amount not less than the paid-in capital stock required of a domestic stock insurer transacting like kinds...
• Sec. 21.69.470 Nonassessable Policies.
  The director shall revoke the authority of a domestic mutual insurer to issue policies without contingent liability if at any time the insurer's assets...
• Sec. 21.69.480 Participating Policies.
  (a) If provided in its articles of incorporation, a domestic stock or domestic mutual insurer may issue any or all of its policies with...
• Sec. 21.69.490 Dividends to Stockholders.
  (a) A domestic stock insurer may not pay a cash dividend to stockholders except out of that part of its available surplus funds that...
• Sec. 21.69.500 Dividends to Mutual Policyholders.
  (a) The directors of a domestic mutual insurer may from time to time apportion and pay or credit to its members dividends only out...
• Sec. 21.69.510 Illegal Dividends.
  (a) A director of a domestic stock or mutual insurer determined by the director, following an appropriate hearing as provided in AS 21.06.170 -...
• Sec. 21.69.520 Borrowed Surplus.
  (a) Subject to the director's prior written approval, a domestic stock or mutual insurer may borrow money to defray the expenses of its organization...
• Sec. 21.69.530 Impairment of Capital or Assets.
  (a) If an insurer becomes impaired, the director shall determine the amount of deficiency and serve notice upon the insurer to make good the...
• Sec. 21.69.540 Assessment of Stockholders or Members.
  (a) An insurer receiving the director's notice mentioned in AS 21.69.530(a)(1) if a stock insurer, by resolution of its board of directors and subject...
• Sec. 21.69.550 Directors' Liability for Losses During Deficiency.
  The directors of the insurer shall be individually liable for losses incurred under policies issued by the insurer after expiration of the period provided...
• Sec. 21.69.560 Stock Transfer During Impairment of Capital.
  A transfer of the stock of a domestic insurer made during the existence of an impairment of the insurer's capital does not release the...
• Sec. 21.69.570 Mutualization of Stock Insurers.
  (a) A stock insurer other than a title insurer may become a mutual insurer under the plan and procedure that may be approved by...
• Sec. 21.69.580 Converting Mutual Insurer.
  A mutual insurer may not be converted to a stock insurer.
• Sec. 21.69.590 Mergers and Consolidations of Stock Insurers.
  (a) A domestic stock insurer may merge or consolidate with one or more domestic or foreign stock insurers authorized to transact insurance in this...
• Sec. 21.69.600 Mergers and Consolidations, Mutual Insurers.
  (a) A domestic mutual insurer may not merge or consolidate with a stock insurer.(b) A domestic mutual insurer may merge or consolidate with another...
• Sec. 21.69.610 Reinsurance for Stock Insurers.
  (a) Notwithstanding (b) of this section, a domestic stock insurer may reinsure a portion or all of its insurance in force or a major...
• Sec. 21.69.620 Reinsurance for Mutual Insurers.
  (a) A domestic mutual insurer may reinsure a portion or all of its business in force or a portion or all of a major...
• Sec. 21.69.630 Mutual Member's Share of Assets on Liquidation.
  (a) Upon the liquidation of a domestic mutual insurer, its assets remaining after discharge of its indebtedness, policy obligations, repayment of contributed or borrowed...
• Sec. 21.69.640 Extinguishment of Unused Corporate Charters.
  (a) The corporate charter of a corporation formed under the laws of this state more than three years before July 1, 1966, for the...
• Sec. 21.69.645 Redomestication.
  (a) An insurer organized under the laws of another state and admitted to do business in this state may become a domestic insurer of...
• Sec. 21.69.648 Voluntary Surrender of Certificate of Authority.
  To voluntarily surrender the certificate of authority of a domestic insurer, a request shall be made to the director to extinguish the certificate of...
• Sec. 21.69.650 National Emergency Provisions.
  The legislature declares that it is desirable for the general welfare and in particular for the welfare of insurance beneficiaries, policyholders, injured claimants, and...
• Sec. 21.69.660 Adoption of Emergency Bylaws.
  The board of directors of a domestic insurer may at any time adopt emergency bylaws, subject to repeal or change by action of those...
• Sec. 21.69.670 Provisions in Lieu of Emergency Bylaws.
  If the board of directors of a domestic insurer has not adopted emergency bylaws, the following provisions become effective upon the occurrence of a...
• Sec. 21.69.680 Succession of Corporate Officers During National Emergency.
  At any time the board of directors of a domestic insurer may, by resolution, provide that in the event of a national emergency and...
• Sec. 21.69.690 Relocation of Home Office During National Emergency.
  At any time the board of directors of a domestic insurer may, by resolution, provide that in the event of a national emergency the...
• Sec. 21.69.700 Stock Insurer Defined.
  A domestic "stock" insurer is an incorporated insurer with capital divided into shares and owned by its stockholders.
• Sec. 21.69.710 Mutual Insurer Defined.
  A domestic "mutual" insurer is an incorporated insurer without capital stock, and the governing body of which is elected by the policyholders.

Last modified: November 15, 2016