Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 2 - Division of Insurance
Chapter 21 - Insurer - Financial
Article 2 - Investments
3 AAC 21.216 - Prohibited investments
Universal Citation: 3 AK Admin Code 21.216
Current through February 24, 2025
(a) An insurer may not, directly or indirectly
(1) acquire, hold, or invest in an
obligation or security or make a guarantee for the benefit of or in favor of an
officer or director of the insurer, except as provided in
3
AAC 21.221;
(2) acquire, hold, or invest in an obligation
or security of, make a guarantee for the benefit of or in favor of, or make
other investments in a business entity of which 10 percent or more of the
voting securities or equity interests are owned directly or indirectly by or
for the benefit of one or more officers or directors of the insurer, except as
authorized in AS 21.22 or provided in
3
AAC 21.221;
(3) engage on its own behalf or through one
or more affiliates in a transaction or series of transactions designed to evade
the prohibitions in
3
AAC 21.201 -
3
AAC 21.399;
(4) invest in a partnership as a general
partner, unless
(A) all other partners in the
partnership are subsidiaries of the insurer;
(B) the investment is for the purpose of
(i) meeting cash calls committed to before
December 28, 2001;
(ii) completing
those specific projects or activities of the partnership in which the insurer
was a general partner as of December 28, 2001 that have been undertaken as of
that date; or
(iii) making capital
improvements to property owned by the partnership on December 28, 2001 if the
insurer was a general partner as of that date; or
(C) the investment complies with
3
AAC 21.206(c); or
(5) invest in or lend the
insurer's money upon the security of shares of the insurer's own stock, except
that an insurer may acquire shares of the insurer's own stock, but not as
admitted assets of the insurer, for the following purposes:
(A) conversion of a stock insurer into a
mutual or reciprocal insurer or a mutual or reciprocal insurer into a stock
insurer;
(B) issuance to the
insurer's officers, employees, or agents in connection with converting a
publicly held insurer into a privately held insurer or in connection with other
stock option and employee benefit plans;
(C) as required by any other plan approved by
the director under AS 21.
(b) This section does not prohibit a subsidiary or other affiliate of an insurer from becoming a general partner.
Authority:AS 21.06.090
AS 21.18.010
AS 21.18.030
AS 21.18.040
AS 21.21.010
AS 21.21.020
AS 21.21.255
AS 21.21.420
Disclaimer: These regulations may not be the most recent version. Alaska may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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