Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 2 - Division of Insurance
Chapter 23 - Producers, Managing General Agents, Surplus Lines Brokers, Reinsurance Intermediary Managers, Reinsurance Intermediary Brokers, Third Party Administrators, and Independent Adjusters
Article 4 - Fiduciary Responsibilities of Licensees
3 AAC 23.730 - Definitions

Universal Citation: 3 AK Admin Code 23.730

Current through February 24, 2025

In 3 AAC 23.500 - 3 AAC 23.730, unless the context requires otherwise,

(1) "accessible" means capable of being reviewed by the director or the director's appointed or employed representatives;

(2) "accounts payable" means the amount due to insurers that has been received or will be received in the future in a fiduciary capacity, and is currently being carried as an accounts receivable from customers who are purchasing contracts of insurance;

(3) "accounts receivable" means the amount due from customers who are purchasing contracts of insurance;

(4) "advice of credit" means a written notice normally prepared and transmitted by an insurer notifying a licensee;

(A) that an amount is owed by the insurer to the insured as a result of a policy cancellation before the end of the full policy term;

(B) of a decrease or discount in the amount of premium for a contract of insurance; or

(C) of any other downward adjustment of an amount owed or paid by an insured to an insurer arising from a contract of insurance;

(5) "American Institute of Certified Public Accountants" means the body established by practicing certified public accountants that functions as their national professional organization and publishes auditing and accounting guides that expand upon the opinions of the Financial Accounting Standards Board and its successor organizations;

(6) "fiduciary" means the relationship of a licensee

(A) regarding the receipt of money held in a caretaker capacity representing a premium or return premium in connection with the sale of a contract of insurance; and

(B) of such a character that the insurance customer must repose trust and confidence in the licensee and the licensee must exercise a corresponding degree of fairness and good faith;

(7) "fiduciary account" means a deposit account at a financial institution into which money being held in a fiduciary capacity is placed;

(8) "Financial Accounting Standards Board" means the body

(A) established by the American Institute of Certified Public Accountants or its successor national professional organization of practicing certified public accountants; and

(B) charged with the responsibility of determining and enforcing financial accounting standards;

(9) "financial institution" means a bank, savings and loan, savings bank, or credit union

(A) insured by an agency of the United States government, or by an organization bearing the full faith and credit of the United States government; and

(B) that both accepts deposits and makes either commercial or consumer loans;

(10) "financial statement" means a report that summarizes, analyzes, quantifies, and classifies the economic activities of a licensee and that is reported as information of the following two basic types:

(A) a balance sheet that shows the financial position that relates to a specific time;

(B) a statement of earnings or excess of revenues over expenses that shows the changes in financial position that relate to a period of time;

(11) "insurance customer" means a customer of a licensee who is in the act of purchasing a contract of insurance; "insurance customer" does not include a customer who is in the act of purchasing a product that is not an insurance contract;

(12) "licensee" means a person licensed under AS 21.27;

(13) "periodically" means accomplished on a frequency occurring at least as often as internal financial statements are prepared by a licensee;

(14) "records of a particular transaction" means all information, whether in written, electronic, or other form, dealing with the sale of a contract of insurance and the completion of that contract; "records of a particular transaction" includes all related accounting and banking records;

(15) "return premium" means money being returned to an insured through a licensee for the purpose of reimbursing that insurance customer for the early cancellation of a contract of insurance or other adjustment of a premium;

(16) "working day" means a calendar day other than Saturday, Sunday, an official federal holiday, or an official holiday of this state.

Authority:AS 21.06.090

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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