Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 2 - Division of Insurance
Chapter 21 - Insurer - Financial
Article 6 - Reinsurance
3 AAC 21.675 - Letter of credit provisions for an unauthorized assuming insurer
Universal Citation: 3 AK Admin Code 21.675
Current through February 24, 2025
(a) The letter of credit securing credit for reinsurance with an unauthorized assuming insurer must
(1) contain an issue date and date of
expiration and stipulate that the ceding insurer need only draw a sight draft
under the letter of credit and present it without other documentation to obtain
funds;
(2) state that it is not
subject to any condition or qualification outside of the letter of credit,
except as provided in
3
AAC 21.600 -
3
AAC 21.695;
(3) contain no reference to any other
agreement, document, or entity, except as provided in
3
AAC 21.600 -
3
AAC 21.695;
(4) state that the obligation of the
qualified United States financial institution under the letter of credit is not
contingent upon reimbursement;
(5)
be for a term of no less than one year;
(6) contain an evergreen clause that provides
for no less than 30 days notice of nonrenewal before the renewal date;
and
(7) state that the letter of
credit is governed by the laws of this state and that all drafts drawn will be
presentable at an office in the United States of a qualified United States
financial institution.
(b) The heading of a letter of credit may include a boxed section that contains the name of the applicant and other notations to provide a reference for the letter of credit. If used, the boxed section must be clearly marked that the information is for internal identification purposes only.
Authority:AS 21.06.090
AS 21.12.020
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