Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 2 - Division of Insurance
Chapter 21 - Insurer - Financial
Article 2 - Investments
3 AAC 21.206 - General investment qualifications

(a) An insurer may acquire, hold, or invest in an investment or engage in an investment practice as set out in 3 AAC 21.201 - 3 AAC 21.399. An investment that does not conform to 3 AAC 21.201 - 3 AAC 21.399 is not an admitted asset.

(b) Subject to (c) of this section, an insurer may not acquire, hold, or invest in an investment as an admitted asset unless, at the time of acquisition, the investment is

(c) An insurer may acquire, hold, or invest in as an admitted asset an investment that does not otherwise qualify under 3 AAC 21.201 - 3 AAC 21.399 if the insurer has not acquired the investment for the purpose of circumventing any limitations contained in 3 AAC 2 1.201 - 3 AAC 21.399, if the insurer complies with the provisions of AS 21.18.170 and 3 AAC 21.216 as to the investment, and if the insurer acquires the investment in one or more of the following circumstances:

(d) An investment or portion of an investment acquired, held, or invested in by an insurer under (c) of this section becomes a nonadmitted asset three years after the date of its acquisition, or five years after the date of its acquisition in the case of a mortgage loan and real estate, unless, within the applicable period, the investment has become a qualified investment under a provision of 3 AAC 21.201 - 3 AAC 21.399 other than (c) of this section. However, an investment acquired under an agreement of bulk reinsurance, merger, or consolidation may be qualified for a longer period if a longer period is provided in the plan for reinsurance, merger, or consolidation as approved by the director under AS 21.22.010 and AS 21.69.590-21.69.620. Upon application by an insurer and a showing, to the director's satisfaction, that the nonadmission of an asset held under (c) of this section would materially injure the interest of the insurer, the director will extend the period for admissibility for an additional reasonable period of time.

(e) Except as provided in (f) and (h) of this section, an investment qualifies under 3 AAC 21.201 - 3 AAC 21.399 if, on the date the insurer committed to acquire, hold, or make the investment or on the date of its acquisition, it would have qualified under 3 AAC 21.201 - 3 AAC 21.399. For the purposes of determining limitations contained in 3 AAC 21.201 - 3 AAC 21.399, an insurer shall give recognition to any commitments to acquire investments.

(f) On December 28, 2001,

(g) Unless otherwise specified, an investment limitation computed on the basis of an insurer's admitted assets or an insurer's capital and surplus must relate to the amount required to be shown on the insurer's financial statement most recently required to be filed with the director under AS 21.09.200, AS 21.09.205, and 3 AAC 21.400. For purposes of computing any limitation based upon admitted assets, the insurer shall deduct from the amount of its admitted assets the amount of the liability recorded on that financial statement for the

(h) An investment qualified, in whole or in part, for acquiring, holding, or investing in as an admitted asset may be qualified or requalified at the time of acquisition or a later date, in whole or in part, under any other provision of 3 AAC 21.201 - 3 AAC 21.399 if the relevant conditions contained in the other provision are satisfied at the time of qualification or requalification.

(i) An insurer shall maintain documentation demonstrating that investments were acquired, held, or invested as required by 3 AAC 21.201 - 3 AAC 21.399 and specifying the provision of 3 AAC 21.201 - 3 AAC 21.399 under which they were acquired, held, or invested.

(j) An insurer may not enter into an agreement to purchase a security in advance of its issuance for resale to the public as part of a distribution of the security by an issuer or otherwise guarantee the distribution, except that an insurer may acquire a privately placed security with registration rights.

(k) Notwithstanding the provisions of 3 AAC 21.201 - 3 AAC 21.399, the director may order an insurer to nonadmit, limit, dispose of, or withdraw from or discontinue an investment or investment practice if the director finds that the investment or investment practice is not consistent with the purposes of 3 AAC 21.201 - 3 AAC 21.399 as stated in 3 AAC 21.201.

(l) An insurance future or insurance future option is not considered an investment or investment practice for purposes of 3 AAC 21.201 - 3 AAC 21.399.

(m) Notwithstanding (f)(1) of this section, an insurer shall maintain the investment limitations imposed under 3 AAC 21.201 - 3 AAC 21.399 subsequent to December 28, 2001.