Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 2 - Division of Insurance
Chapter 21 - Insurer - Financial
Article 4 - Definition of Standards and Director's Authority for Companies Deemed to be in an Impaired Financial Condition
3 AAC 21.520 - Remedial action

Universal Citation: 3 AK Admin Code 21.520

Current through February 24, 2025

(a) If the director determines that an insurer is impaired or in imminent danger of becoming impaired, the director may order the insurer to take one or more of the following actions:

(1) reduce the total amount of present and potential liability for policy benefits by reinsurance;

(2) reduce, suspend, or limit the volume of business being accepted or renewed;

(3) reduce general insurance and commission expenses by specified methods;

(4) increase the insurer's capital and surplus;

(5) suspend or limit the declaration and payment of a dividend by an insurer to its stockholders or its policyholders;

(6) file a report in a form acceptable to the director concerning the market value of the insurer's assets;

(7) limit or withdraw from certain investments or discontinue certain investment practices to the extent the director considers necessary;

(8) document the adequacy of a premium rate in relation to the risk insured;

(9) file interim financial reports, in addition to the regular annual statements, on a form adopted by the National Association of Insurance Commissioners unless the director designates another form;

(10) correct corporate governance practice deficiencies, and adopt and use governance practices acceptable to the director;

(11) provide a business plan to the director in order to continue to transact business in this state;

(12) notwithstanding any other provision of AS 21 limiting the frequency or amount of premium rate adjustments, adjust the rate for any non-life insurance product written by the insurer that the director considers necessary to improve the financial condition of the insurer;

(13) any other remedial action designed to prevent impairment or diminish the imminent danger of impairment.

(b) An insurer who is aggrieved by an order under (a) of this section may request a hearing under AS 21.06.170-21.06.230. Unless an exception is granted under AS 21.06.210(h), a hearing is open to the public. An insurer may submit a written request to have all or part of a hearing closed to the public. The request must identify facts supporting why conducting a closed hearing is necessary to protect the insurer against unwarranted injury or is in the public interest. A hearing or part of a hearing may be closed to the public if the director or administrative law judge, upon review of the facts and law, finds that conducting the hearing in public will cause unwarranted injury to the insurer or is not in the public interest.

Authority:AS 21.06.060

AS 21.06.090

AS 21.09.175

AS 21.39.130

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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