(a) Except as
provided in (d) of this section, and without the prior written approval of the
director that will be given only if the transaction is consistent with the
purposes of
3
AAC 21.201 -
3
AAC 21.399 as stated in
3
AAC 21.201 and is in the public interest, an insurer
may not directly or indirectly
(1) make a
loan to or other investment in an officer or director of the insurer or a
person in which the officer or director has a direct or indirect financial
interest;
(2) make a guarantee for
the benefit of or in favor of an officer or director of the insurer or a person
in which the officer or director has a direct or indirect financial interest;
or
(3) enter into an agreement for
the purchase or sale of property from or to an officer or director of the
insurer or a person in which the officer or director has a direct or indirect
financial interest.
(b)
For purposes of (a) of this section, an officer or director is not considered
to have a financial interest by reason of an interest that is held directly or
indirectly through the ownership of equity interests representing less than two
percent of all outstanding equity interests issued by a person that is a party
to a transaction referenced in (a) of this section.
(c) The provisions of (a) of this section do
not
(1) permit an investment that is
prohibited by
3
AAC 21.216; and
(2) apply to a transaction between an insurer
and a subsidiary or affiliate that is entered into in compliance with AS 21.22,
except for a transaction between the insurer and its officers or
directors.
(d) An
insurer may make, without the prior written approval of the director,
(1) a policy loan in compliance with the
terms of the policy or contract and
3
AAC 21.276;
(2) an advance to an officer or director for
an expense reasonably expected to be incurred in the ordinary course of the
insurer's business or a guarantee associated with a credit or charge card
issued or credit extended for the purpose of financing these
expenses;
(3) a loan secured by the
principal residence of an officer of the insurer made in connection with the
officer's relocation at the insurer's request, if the loan complies with the
requirements of
3
AAC 21.256 or
3
AAC 21.350 and the terms and conditions are otherwise
the same as those generally available from an unaffiliated third
party;
(4) a secured loan to an
officer of the insurer made in connection with the officer's relocation at the
insurer's request, if the loan
(A) does not
have a term exceeding two years;
(B) is required to finance mortgage loans
outstanding at the same time on the prior and new residences of the
officer;
(C) does not exceed an
amount equal to the equity of the officer in the prior residence; and
(D) is required to be fully repaid upon the
earlier of the end of the two-year period described in (A) of this paragraph or
the sale of the prior residence; and
(5) a loan or advance to an officer or
director made in compliance with state or federal law specifically related to
the loan or advance by a regulated noninsurance subsidiary or affiliate of the
insurer in the ordinary course of business and on terms that are not more
favorable than those available to other customers of the entity.
