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CSSB 53(L&C): "An Act relating to consumer credit insurance; to regulation of risk retention or purchasing groups; to preemption of the regulation of insurance agents and insurance producers; to the general powers of the director of the division of insurance; to insurance examination hearings; to insurer certificates of authority; to annual and quarterly statements, taxes, and prohibited acts of insurers; to reinsurance credit allowed a domestic insurer; to risk based capital for insurers; to insurer assets and liabilities; to insurer investments; to insurance holding companies; to regulation, licensing, and examination of insurance producers, managing general agents, third-party administrators, brokers, independent adjusters, and reinsurance intermediary managers; to surplus lines insurance; to insurance trade practices and criminal insurance acts; to premium increases in automobile insurance; to insurance rating; to assigned risk pools; to filing and approval of certain insurance policy forms; to required insurance coverage for acupuncture, nurse midwives' services, mammography, and phenylketonuria; to health insurance provided by small employers; to transfer of an insurer's status as a domestic insurer; to quarterly statements of benevolent associations, fraternal benefit societies, and health maintenance organizations; to reciprocal insurers; to the definition of `member insurer' for purposes of the Alaska Life and Disability Insurance Guaranty Association; to electronic insurance data transfer and insurance funds transfer; to the definitions of `managing general agent' and `person' applicable to insurance law; to automobile assigned risk plans; placing a person employed by the division of insurance as an actuary or assistant actuary into the exempt service; amending Alaska Rule of Civil Procedure 45; and providing for an effective date."

00 CS FOR SENATE BILL NO. 53(L&C)                                                                                          
01 "An Act relating to consumer credit insurance; to regulation of risk retention                                          
02 or purchasing groups; to preemption of the regulation of insurance agents and                                           
03 insurance producers; to the general powers of the director of the division of                                           
04 insurance; to insurance examination hearings; to insurer certificates of authority;                                     
05 to annual and quarterly statements, taxes, and prohibited acts of insurers; to                                          
06 reinsurance credit allowed a domestic insurer; to risk based capital for insurers;                                      
07 to insurer assets and liabilities; to insurer investments; to insurance holding                                         
08 companies; to regulation, licensing, and examination of insurance producers,                                            
09 managing general agents, third-party administrators, brokers, independent                                               
10 adjusters, and reinsurance intermediary managers; to surplus lines insurance; to                                        
11 insurance trade practices and criminal insurance acts; to premium increases in                                          
12 automobile insurance; to insurance rating; to assigned risk pools; to filing and                                        
13 approval of certain insurance policy forms; to required insurance coverage for                                          
14 acupuncture, nurse midwives' services, mammography, and phenylketonuria; to                                             
01 health insurance provided by small employers; to transfer of an insurer's status                                        
02 as a domestic insurer; to quarterly statements of benevolent associations,                                              
03 fraternal benefit societies, and health maintenance organizations; to reciprocal                                        
04 insurers; to the definition of `member insurer' for purposes of the Alaska Life                                         
05 and Disability Insurance Guaranty Association; to electronic insurance data                                             
06 transfer and insurance funds transfer; to the definitions of `managing general                                          
07 agent' and `person' applicable to insurance law; to automobile assigned risk                                            
08 plans; placing a person employed by the division of insurance as an actuary                                             
09 or assistant actuary into the exempt service; amending Alaska Rule of Civil                                             
10 Procedure 45; and providing for an effective date."                                                                     
11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
12    * Section 1.  AS 06.20.260(a) is amended to read:                                                                    
13  (a)  A further or other charge or amount for an examination, service, brokerage                                       
14 commission, expense, fee,  bonus, or other thing  may not be directly or indirectly                                     
15 charged, contracted for, or received except                                                                             
16   (1)  lawful fees actually paid out by the licensee to a public officer for                                           
17 filing, recording, or releasing any instrument securing the loan, or for transferring                                   
18 certificate of title to a motor vehicle securing the lien or noting a lien on that                                      
19 certificate;                                                                                                            
20   (2)  premiums actually paid out for insurance on any one or combination                                              
21 of the following:  pledged property of the borrower, or consumer credit [LIFE]                                        
22 insurance; in this paragraph "consumer credit insurance" has the meaning given                                         
23 in AS 21.57.160 [ON THE LIFE OF ONE OR MORE BORROWERS, CREDIT LOSS                                                     
24 OF INCOME INSURANCE, OR CREDIT DISABILITY INSURANCE TO PROVIDE                                                          
25 INDEMNITY FOR PAYMENTS BECOMING DUE ON THE INDEBTEDNESS];                                                               
26   (3)  taxable costs and expenses to which the licensee becomes entitled                                               
27 under general law in any court proceedings to collect a loan or to realize on the                                       
28 security after default;                                                                                                 
29   (4)  reasonable fees paid by a licensee for appraisals, surveys, and title                                           
30 insurance or reports if the loan is secured by an interest in real estate;                                              
31   (5)  a late payment fee of not more than 10 percent of the payment that                                              
01 is due or $15, whichever is less.                                                                                       
02    * Sec. 2.  AS 06.20.287(a) is amended to read:                                                                       
03  (a)  A licensee may obtain consumer credit [LIFE, CREDIT DISABILITY,]                                               
04 and property insurance on open-end loans under this chapter.  The consumer credit                                     
05 [LIFE AND CREDIT DISABILITY] insurance obtained by a licensee shall satisfy the                                         
06 requirements of AS 21.57.  The property insurance obtained by a licensee shall satisfy                                  
07 the requirements of AS 21.39 and AS 21.42.  The licensee shall comply with                                              
08 AS 21.36.160 and 21.36.165 during all transactions with borrowers involving                                            
09 consumer credit [LIFE, CREDIT DISABILITY] and property insurance.                                                      
10    * Sec. 3.  AS 21.03.010 is amended by adding a new subsection to read:                                               
11  (c)  A person who transacts insurance in this state, or relative to a subject                                         
12 resident, located, or to be performed in this state as or on behalf of a risk retention                                 
13 group or purchasing group formed under and in compliance with 15 U.S.C. 3901 -                                          
14 3906 (Liability Risk Retention Act), shall comply with the provisions of this title not                                 
15 preempted by federal law.                                                                                               
16    * Sec. 4.  AS 21.03.060 is amended to read:                                                                          
17  Sec. 21.03.060.  PRE-EMPTION.  The state hereby pre-empts the field of                                                
18 regulating insurers and their managing general agents, insurance producers                                          
19 [AGENTS], and representatives.  All political subdivisions of the state, including home                                 
20 rule boroughs or cities, are prohibited from requiring of an insurer, managing general                                
21 agent, insurance producer [AGENT], or representative regulated under this title an                                    
22 authorization, permit, or registration of any kind for conducting transactions lawful                                   
23 under the authority granted by the state under this title.                                                              
24    * Sec. 5.  AS 21.06.080 is amended by adding a new subsection to read:                                               
25  (e)  If the director determines that a catastrophe has occurred in this state and                                     
26 in good faith believes that the governor or the President of the United States has issued                               
27 or is about to issue a declaration of disaster, the director may take the action that the                               
28 director considers necessary to assure that a contract of insurance already issued will                                 
29 be honored under the terms of the contract.  Actions that the director may take include                                 
30 emergency orders permitting the immediate licensing of adjusters to facilitate handling                                 
31 of claims, permitting a licensee to open or close an office, permitting a licensee to                                   
01 move or remove a record as required by the existence of the catastrophe, or permitting                                  
02 the issuance by an insurer of checks or drafts drawn on an out-of-state bank in                                         
03 payment of a claim.  Until a declaration of the disaster has been lifted, the director                                  
04 may take action to respond to a disaster without a hearing.  An action taken under this                                 
05 subsection may not remain in effect more than six months from the date that the                                         
06 director determines that a catastrophe has occurred unless, after a hearing, the director                               
07 determines that the action is still necessary to respond to the disaster.                                               
08    * Sec. 6.  AS 21.06.120(c) is amended to read:                                                                       
09  (c)  In place of an examination by the director, the director may accept a full                                       
10 report of the last recent examination of a foreign or alien insurer, certified to by the                                
11 insurance supervisory official of another state, territory, commonwealth, or district of                                
12 the United States.  The director may require that the [IF]                                                            
13   (1)  [THE] insurance regulatory agency conducting the examination be,                                              
14 [WAS] at the time of the examination, accredited by the National Association of                                       
15 Insurance Commissioners;                                                                                                
16   (2)  [THE] examination be [IS] performed under the supervision of an                                               
17 insurance regulatory agency accredited by the National Association of Insurance                                         
18 Commissioners; and the supervising examiner, after a review of the examination work                                   
19 papers and report, state [STATES] under oath that the examination and report comply                                   
20 with the standards and procedures required by their accredited state insurance                                          
21 regulatory agency; or                                                                                                   
22   (3)  [THE] examiner conducting the examination be [WAS] employed                                                   
23 by an insurance regulatory agency accredited at the time of the examination by the                                      
24 National Association of Insurance Commissioners and that the examiner, after review                                   
25 of the examination work papers and report, state [STATES] under oath that the                                         
26 examination and report comply with the standards and procedures required by the                                         
27 accredited insurance regulatory agency.                                                                                 
28    * Sec. 7.  AS 21.06.150(g) is amended to read:                                                                       
29  (g)  The director may withhold a document, information, account, record,                                              
30 examination, or report from the public inspection for as long as the director finds the                                 
31 withholding is necessary to protect a person against unwarranted injury or is in the                                    
01 public interest.  The director may close an examination hearing to the public when                                     
02 the director finds the closure is necessary to protect a person against unwarranted                                     
03 injury or is in the public interest.  The director may publish the examination report                                  
04 or a summary of it in a newspaper in the state if the director determines that the                                      
05 publication is in the public interest.                                                                                  
06    * Sec. 8.  AS 21.09.110 is amended to read:                                                                          
07  Sec. 21.09.110.  APPLICATION FOR CERTIFICATE OF AUTHORITY.  To                                                        
08 apply for an original certificate of authority an insurer shall file with the director its                              
09 application, [(] accompanied by the applicable fees set under AS 21.06.250, [)]                                     
10 showing its name, location of its home office, or principal office in the United States                               
11 [(] if an alien insurer [)], kinds of insurance to be transacted, date of organization or                               
12 incorporation, form of organization, state or country of domicile, and additional                                       
13 information that the director may reasonably require, together with the following                                       
14 documents, as applicable:                                                                                               
15   (1)  if a foreign insurer, a copy of its corporate charter or articles of                                            
16 incorporation, with all amendments certified by the public officer with whom the                                        
17 originals are on file in the state or country of domicile;                                                              
18    (2)  if a reciprocal insurer, copies of the power of attorney of its                                                
19 attorney-in-fact and of its subscribers' agreement, if any, certified by its                                            
20 attorney-in-fact;                                                                                                       
21   (3)  a copy of its financial statement as of the preceding December 31,                                              
22 and all subsequent quarterly financial statements, sworn to by at least two executive                                   
23 officers of the insurer, or certified by the public insurance supervisory official of the                               
24 insurer's state of domicile or of entry into the United States;                                                         
25   (4)  a copy of the report of last examination, if any, made of the insurer,                                          
26 certified by the insurance supervisory official of its state of domicile or of entry into                               
27 the United States;                                                                                                      
28   (5)  appointment of the director under AS 21.09.180, as its attorney to                                              
29 receive service of legal process;                                                                                       
30   (6)  if a foreign or alien insurer, a certificate of the public official                                             
31 having supervision of insurance in its state or country of domicile, or state of entry                                  
01 into the United States, showing that it is authorized to transact the kinds of insurance                                
02 proposed to be transacted in this state;                                                                                
03   (7)  if an alien insurer, a copy of the appointment and authority of its                                             
04 United States manager, certified by its officer having custody of its records; and                                    
05   (8)  if a foreign insurer, a certificate as to deposit if it is to be tendered                                       
06 under AS 21.09.090 [;                                                                                                   
07   (9)  SPECIMEN COPIES OF POLICIES PROPOSED TO BE                                                                      
08 OFFERED IN THIS STATE IF THEN AVAILABLE, TOGETHER WITH                                                                  
09 PREMIUMS OR PREMIUM RATES APPLICABLE IF THEN KNOWN, OR A                                                                
10 DECLARATION THAT THE RATES AS APPLICABLE WILL BE THOSE                                                                  
11 PROMULGATED BY DESIGNATED RATING ORGANIZATIONS AUTHORIZED                                                               
12 TO FILE RATES IN THIS STATE ON BEHALF OF THE INSURER OR BY THE                                                          
13 INSURER].                                                                                                               
14    * Sec. 9.  AS 21.09.110 is amended by adding a new subsection to read:                                               
15  (b)  Policy forms and rates that require approval under AS 21.39 or AS 21.42                                          
16 shall be submitted under AS 21.39.040(j) or AS 21.42.120(g) and may not be                                              
17 submitted with the application for a certificate of authority.                                                          
18    * Sec. 10.  AS 21.09.130(b) is amended to read:                                                                      
19  (b)  If not continued by the insurer, its certificate of authority shall be                                          
20 suspended [EXPIRES] at midnight on June 30 following the failure of the insurer to                                     
21 continue it in force.  The certificate of authority shall expire on June 30 one year                                   
22 following its suspension due to failure to continue the certificate of authority.  The                                 
23 director shall promptly notify the insurer of the occurrence of a failure that may result                              
24 in suspension [RESULTING IN IMPENDING EXPIRATION] of its certificate of                                                
25 authority.                                                                                                              
26    * Sec. 11.  AS 21.09 is amended by adding a new section to read:                                                     
27  Sec. 21.09.135.  VOLUNTARY SURRENDER OF CERTIFICATE OF                                                                
28 AUTHORITY.  (a)  A foreign admitted insurer may apply for voluntary surrender of                                        
29 its certificate of authority and the director may accept the application, if the foreign                                
30 admitted insurer                                                                                                        
31   (1)  is in compliance with the applicable sections of this title, or the                                             
01 director waives in writing each condition of noncompliance;                                                             
02   (2)  provides written confirmation that obligations incurred before the                                              
03 voluntary surrender of the certificate of authority shall be paid to guarantee funds or                                 
04 insurance pools established by law; and                                                                                 
05   (3)  is domiciled in a state that is                                                                                 
06   (A)  accredited by the National Association of Insurance                                                            
07 Commissioners at the time of the request for voluntary surrender; or                                                    
08   (B)  not accredited by the National Association of Insurance                                                        
09 Commissioners at the time of the request and agrees in writing to be subject                                            
10 to                                                                                                                      
11   (i)  AS 21.09.200 and 21.09.205 for a period of two                                                                
12 years, including payment of any fee related to filing information with                                                  
13 the director; and                                                                                                       
14   (ii)  any other provision of this title that may be required                                                       
15 in writing by the director and for the period of time the director may                                                  
16 specify.                                                                                                                
17  (b)  If a foreign admitted insurer who surrenders a certificate of authority                                          
18 ceases to exist, all business written and in force relative to a risk resident, located, or                             
19 to be performed in this state shall be lawfully cancelled or reinsured.  A reinsurance                                  
20 agreement covering all or a part of a risk described in this subsection shall be                                        
21 approved by the director before accepting the certificate of authority for surrender if                                 
22 the agreement meets the following criteria:                                                                             
23   (1)  insurance coverage has not deteriorated from the policies existing                                              
24 at the time of the transfer;                                                                                            
25   (2)  the assuming insurer is of equal or better financial standing; and                                              
26   (3)  the assuming insurer is admitted to do business in this state, unless                                           
27 this requirement is waived by the director.                                                                             
28    * Sec. 12.  AS 21.09.200(f) is amended to read:                                                                      
29  (f)  In addition to the requirements of (a) of this section, an authorized [A                                       
30 DOMESTIC] insurer shall file its annual statement with the National Association of                                      
31 Insurance Commissioners on electronic media acceptable to the association by the                                      
01 due date established by the association, and shall pay the applicable filing fee.  The                                 
02 director may waive the filing requirement if the insurer only transacts business                                        
03 in this state and only accepts risks relative to a subject resident, located, or to be                                  
04 performed in this state.  An insurer that fails to comply with this subsection is                                      
05 subject to the penalties specified in (e) of this section, calculated from the filing and                               
06 fee due date established by the National Association of Insurance Commissioners.                                        
07    * Sec. 13.  AS 21.09.205 is amended by adding a new subsection to read:                                              
08  (d)  In addition to the requirements of (a) of this section, an authorized insurer                                    
09 shall file its quarterly statement with the National Association of Insurance                                           
10 Commissioners on electronic media acceptable to the association by the due date                                         
11 established by the association, and shall pay the applicable filing fee.  The director                                  
12 may waive the filing requirement if the insurer only transacts business in this state and                               
13 only accepts risks relative to a subject resident, located, or to be performed in this                                  
14 state.  An insurer that fails to comply with this subsection is subject to the penalties                                
15 specified in (c) of this section, calculated from the filing and fee due date established                               
16 by the National Association of Insurance Commissioners.                                                                 
17    * Sec. 14.  AS 21.09.210 is amended by adding new subsections to read:                                               
18  (k)  If, within three years after the date the tax under this section was due, an                                     
19 insurer discovers a mistake or misinterpretation that resulted in an overpayment of the                                 
20 tax in an amount exceeding $250 in any one calendar year, the insurer may make a                                        
21 written request to the director for a refund.  If the director determines a valid mistake                               
22 or misinterpretation has occurred, the director shall refund to the insurer the amount                                  
23 of the excess tax by granting, at the director's discretion, a monetary refund or                                       
24 premium tax credit.  A premium tax credit shall be used in the next calendar year to                                    
25 the extent possible and any unused credit shall be paid as a monetary refund.  A                                        
26 premium tax credit may not reduce the payable tax, calculated without use of the                                        
27 credit, to less than zero.                                                                                              
28  (l)  A premium tax credit granted under (k) of this section may not carry over                                        
29 as an attribute in a transaction under AS 21.69.610, 21.69.620, AS 21.78, or a similar                                  
30 transaction entered into by a foreign insurer.                                                                          
31  (m)  In this section, "premium tax credit" means an amount that an insurer may                                        
01 use as an offset against a premium tax payment.                                                                         
02    * Sec. 15.  AS 21.09.250 is amended to read:                                                                         
03  Sec. 21.09.250.  PROHIBITED ACTS.  An insurer doing business in this state                                            
04 may not make, write, place, or cause to be made, written, or placed in this state a                                     
05 policy, duplicate policy, or contract of insurance of any kind or character, or general                                 
06 or floating policy upon persons or property resident, situated, or located in this state,                               
07 from or through a [BROKER, AGENT, GENERAL AGENT, SURPLUS LINE                                                           
08 BROKER, OR] person required to be licensed who has not secured a license in this                                      
09 state.  An insurer may not pay a commission or any form of remuneration to a person,                                    
10 firm, or organization for the writing or placing of insurance coverage in this state                                    
11 unless that person, firm, or organization holds a license issued by the director.                                       
12    * Sec. 16.  AS 21.09 is amended by adding new sections to read:                                                      
13  Sec. 21.09.290.  RISK RETENTION GROUPS.  (a)  A risk retention group                                                  
14 formed in this state shall                                                                                              
15   (1)  comply with 15 U.S.C. 3901 - 3906 (Liability Risk Retention Act);                                               
16 and                                                                                                                     
17   (2)  qualify for and hold in good standing a certificate of authority under                                          
18 this chapter, limited to liability insurance only.                                                                      
19  (b)  A risk retention group shall submit with its application for a certificate of                                    
20 authority                                                                                                               
21   (1)  the identity of                                                                                                 
22   (A)  the initial members of the risk retention group;                                                               
23   (B)  all persons who organized the risk retention group;                                                            
24   (C)  all persons who will provide administrative services to the                                                    
25 risk retention group;                                                                                                   
26   (D)  all persons who will influence or control the activities of                                                    
27 the risk retention group;                                                                                               
28   (2)  the amount and nature of initial capitalization;                                                                
29   (3)  a plan of operation or a feasibility study that includes the coverage,                                          
30 deductible, coverage limit, rate, and rating classification system for the type or class                                
31 of liability insurance the group intends to offer; and                                                                  
01   (4)  the states in which the risk retention group intends to operate.                                                
02  (c)  At least 30 days before a domestic risk retention group implements a                                             
03 material change or revision to an approved plan of operation or feasibility study, the                                  
04 material change or revision shall be filed with the director.  A material change or                                     
05 revision may not be implemented unless the domestic risk retention group receives the                                   
06 director's written approval.  In this subsection, "material change or revision" includes                                
07 an offering of an additional type or class of liability insurance.                                                      
08  (d)  In this section,                                                                                                 
09   (1)  "liability" means legal liability for damages, including costs of                                               
10 defense, legal costs and fees, and other claims expenses, because of injury to another                                  
11 person, damage to property, or other damage or loss to a person resulting from or                                       
12 arising out of a business, whether profit or nonprofit, trade, product, service, including                              
13 a professional service, or an activity of a state or local government, or an agency or                                  
14 political subdivision of a state or local government; "liability" does not include                                      
15 personal risk liability or employer's liability with respect to its employees other than                                
16 legal liability under 45 U.S.C. 51 (Federal Employers' Liability Act);                                                  
17   (2)  "personal risk liability" means liability for damages because of                                                
18 injury to a person, damage to property, or other loss or damage resulting from a                                        
19 personal, familial, or household responsibility or activity and that is not a responsibility                            
20 or activity described under (1) of this subsection.                                                                     
21  Sec. 21.09.300.  DISCLOSURE OF MATERIAL TRANSACTIONS.  (a)  A                                                         
22 domestic insurer shall file a report with the director disclosing a material acquisition                                
23 and disposition of assets or a material nonrenewal, cancellation, or revision of ceded                                  
24 reinsurance agreements unless the acquisition and disposition of assets or material                                     
25 nonrenewal, cancellation, or revision of ceded reinsurance agreements have been                                         
26 submitted to the director for review, approval, or information purposes as required by                                  
27 this title.                                                                                                             
28  (b)  The report required under (a) of this section is due 15 days after the end                                       
29 of the calendar month in which a reportable transaction occurs.                                                         
30  (c)  Except as provided in this section, a report obtained by or disclosed to the                                     
31 director under this section is confidential, is not subject to subpoena, and may not be                                 
01 made public by the director, or another person, without the prior written consent of the                                
02 insurer submitting the report.  A report under this section may be disclosed to an                                      
03 insurance regulatory agency of another state or to the National Association of                                          
04 Insurance Commissioners, with notice of the disclosure sent to the insurer.  If the                                     
05 director, after giving an insurer notice and an opportunity to be heard, determines that                                
06 the interest of policyholders, shareholders, or the public will be served by publication                                
07 of the report, the director may publish all or any part of the report in a manner the                                   
08 director determines appropriate.                                                                                        
09  (d)  A domestic insurer's report of an acquisition or disposition of an asset                                         
10   (1)  shall be made under (a) of this section if the acquisition or                                                   
11 disposition is material; for purposes of this subsection, an acquisition or disposition,                                
12 or the aggregate of a series of related acquisitions or related dispositions during any                                 
13 30-day period is material if it is nonrecurring, not in the ordinary course of business,                                
14 and involves more than five percent of the reporting insurer's total admitted assets as                                 
15 reported in its most recent financial statement required by law that is filed with the                                  
16 division;                                                                                                               
17   (2)  shall be made on asset acquisition, including a purchase, lease,                                                
18 exchange, merger, consolidation, succession, or other acquisition other than the                                        
19   (A)  construction or development of real property by or for the                                                     
20 reporting insurer; or                                                                                                   
21   (B)  acquisition of material for construction or development of                                                     
22 real property;                                                                                                          
23   (3)  shall be made on asset disposition including a sale, lease, exchange,                                           
24 merger, consolidation, mortgage, hypothecation, assignment for the benefit of creditors,                                
25 or abandonment;                                                                                                         
26   (4)  must include information on the                                                                                 
27   (A)  date of transaction;                                                                                           
28   (B)  manner of acquisition or disposition;                                                                          
29   (C)  description of the assets involved;                                                                            
30   (D)  nature and amount of the consideration given or received;                                                      
31   (E)  purpose of, or reason for, the transaction;                                                                    
01   (F)  manner by which the amount of consideration was                                                                
02 determined;                                                                                                             
03   (G)  gain or loss recognized or realized as a result of the                                                         
04 transaction; and                                                                                                        
05   (H)  names of persons from whom the assets were acquired or                                                         
06 to whom the assets were disposed.                                                                                       
07  (e)  A domestic insurer's report of nonrenewal, cancellation, or revision of a                                        
08 ceded reinsurance agreement                                                                                             
09   (1)  shall be made under (a) of this section if the nonrenewal,                                                      
10 cancellation, or revision is material; for purposes of this subsection, a material                                      
11 nonrenewal, cancellation, or revision is one that affects (A) for property and casualty                                 
12 business, including accident and health business when written as property and casualty                                  
13 business, more than 50 percent of an insurer's ceded written premium; or (B) for life,                                  
14 annuity, and accident and health business, more than 50 percent of the total reserve                                    
15 credit taken for business ceded, on an annualized basis as indicated in the insurer's                                   
16 most recently filed statutory statement; however, a filing is not required if the insurer's                             
17 ceded written premium or the total reserve credit taken for business ceded represents,                                  
18 on an annual basis, less than 10 percent of direct written premiums and assumed                                         
19 written premiums or 10 percent of the statutory reserve requirement before a cession;                                   
20   (2)  shall be filed without regard to which party has initiated the                                                  
21 nonrenewal, cancellation, or revision of ceded reinsurance whenever any of the                                          
22 following conditions exist:                                                                                             
23   (A)  the entire cession has been cancelled, nonrenewed, or                                                          
24 revised and ceded indemnity and loss adjustment expense reserves after a                                                
25 nonrenewal, cancellation, or revision represent less than 50 percent of the                                             
26 comparable reserves that would have been ceded had the nonrenewal,                                                      
27 cancellation, or revision not occurred;                                                                                 
28   (B)  an admitted or accredited reinsurer has been replaced on an                                                    
29 existing cession by an unauthorized reinsurer; however, a report shall be filed                                         
30 only if the result of the revision affects more than 10 percent of the cession;                                         
31 or                                                                                                                      
01   (C)  collateral requirements previously established for                                                             
02 unauthorized reinsurers have been reduced; however, a report shall be filed                                             
03 only if the result of the revision affects more than 10 percent of the cession;                                         
04 and                                                                                                                     
05   (3)  must include                                                                                                    
06   (A)  the effective date of the nonrenewal, cancellation, or                                                         
07 revision;                                                                                                               
08   (B)  a description of the transaction with an identification of the                                                 
09 initiator of the transaction;                                                                                           
10   (C)  the purpose of, or reason for, the transaction; and                                                            
11   (D)  if applicable, the identity of the replacement reinsurers.                                                     
12  (f)  An insurer is required to report under (a) of this section on a                                                  
13 nonconsolidated basis unless the insurer is part of a consolidated group of insurers that                               
14 utilizes a pooling arrangement or 100 percent reinsurance agreement that affects the                                    
15 solvency and integrity of the insurer's reserves and the insurer ceded substantially all                                
16 of its direct and assumed business to the pool.  An insurer is presumed to have ceded                                   
17 substantially all of its direct and assumed business to a pool if the insurer has less than                             
18 $1,000,000 total direct written premiums and assumed written premiums during a                                          
19 calendar year that is not subject to a pooling arrangement and the net income of the                                    
20 business not subject to the pooling arrangement represents less than five percent of the                                
21 insurer's capital and surplus.                                                                                          
22  Sec. 21.09.310.  AUTHORIZATION OF UNITED STATES BRANCHES OF                                                           
23 ALIEN INSURERS AND GENERAL REQUIREMENTS.  (a)  This section applies                                                     
24 to all United States branches of alien insurers using this state as a state of entry to                                 
25 transact the business of insurance in the United States.  Except as provided elsewhere                                  
26 in this title, a United States branch is subject to all state laws applicable to an insurer                             
27 domiciled in this state.                                                                                                
28  (b)  An alien insurer may apply for a certificate of authority to use this state                                      
29 as a state of entry to transact the business of insurance in the United States by                                       
30   (1)  qualifying as an insurer licensed to do business in this state;                                                 
31   (2)  establishing a trust under a trust agreement approved in writing by                                             
01 the director with a United States bank acceptable to the director in an amount not less                                 
02 than the greater of                                                                                                     
03   (A)  the minimum basic capital or basic guarantee surplus and                                                       
04 additional maintained surplus required under AS 21.09.070; or                                                           
05   (B)  the authorized control level risk based capital under                                                          
06 AS 21.14;                                                                                                               
07   (3)  submitting a copy of its charter and bylaws, if any, currently in                                               
08 force, and other documents necessary to show the kind of business it is authorized to                                   
09 transact in its domiciliary jurisdiction; documents submitted under this paragraph must                                 
10 be attested to as accurate and complete by the insurance supervisory official in the                                    
11 domiciliary jurisdiction, and must include an English translation, if in a language other                               
12 than English;                                                                                                           
13   (4)  submitting a full statement, subscribed and affirmed as true by two                                             
14 officers or equivalent responsible representatives in a manner that the director                                        
15 prescribes, of its financial condition as of the close of its latest fiscal year, showing                               
16 its assets, liabilities, income disbursements, business transacted, and other facts                                     
17 required to be shown in its annual statement, as reported to the insurance supervisory                                  
18 official in its domiciliary jurisdiction; all documents submitted under this paragraph                                  
19 must include an English translation if in a language other than English;                                                
20   (5)  submitting to an examination under AS 21.06.120(b) at its principal                                             
21 office within the United States, and elsewhere if necessary, unless the director accepts                                
22 a report of the insurer's recent examination and the report has been certified by the                                   
23 insurance supervisory official of the insurer's domiciliary jurisdiction; and                                           
24   (6)  payment of fees established under AS 21.06.250.                                                                 
25  (c)  Before issuing or renewing a certificate of authority for a United States                                        
26 branch, the director may require satisfactory proof that the insurer does not intend to                                 
27 transact insurance business in violation of the provisions of this title or that is not                                 
28 authorized by its charter.  Proof required under this subsection may include the alien                                  
29 insurer's charter, an agreement evidenced by a duly certified resolution of its board of                                
30 directors, or other proof that the director may require.                                                                
31  (d)  The director may renew a certificate of authority for a United States branch                                     
01 if satisfied, by proof the director may require, that the insurer is not delinquent with                                
02 respect to a requirement or qualification imposed by this title and that its continuance                                
03 to transact the business of insurance in this state will not be hazardous or prejudicial                                
04 to the best interest of the people of this state.                                                                       
05  (e)  A United States branch may not receive or renew a certificate of authority                                       
06 in this state                                                                                                           
07   (1)  to transact a kind of insurance or a combination of kinds of                                                    
08 insurance that are not permitted to be transacted by domestic insurers in this state;                                   
09   (2)  if it transacts business other than the business of insurance                                                   
10 anywhere else within the United States unless the business, in the opinion of the                                       
11 director, is necessarily or properly incidental to the kind of insurance that it is                                     
12 authorized to transact in this state;                                                                                   
13   (3)  if it fails to keep full and correct entries of its transactions; records                                       
14 of entries shall at all times be maintained in its principal office within this state; or                               
15   (4)  if it fails to comply with a requirement or limitation of this title that                                       
16 it is not exempted from by another provision of this title and that is applicable to                                    
17 similar domestic insurers and if, in the judgment of the director, the requirement or                                   
18 limitation is necessary to protect the interest of the policyholders.                                                   
19  (f)  A United States branch that transacts a kind or combination of kinds of                                          
20 insurance outside this state that is not permitted to be done in this state by similar                                  
21 domestic insurers may not have a certificate of authority issued or renewed in this state                               
22 unless, in the judgment of the director, the transaction of that kind of insurance is not                               
23 prejudicial to the best interest of the people of this state.                                                           
24  (g)  A United States branch shall maintain assets in a trust account in an                                            
25 amount not less than the United States branch's reserves and other liabilities, plus the                                
26 greater of                                                                                                              
27   (1)  the minimum basic capital or basic guaranteed surplus and                                                       
28 additional maintained surplus required under AS 21.09.070; or                                                           
29   (2)  the authorized control level risk based capital under AS 21.14.                                                 
30  (h)  A written trust agreement must contain provisions that                                                           
31   (1)  vest legal title to trusteed assets in the trustees, and their lawfully                                         
01 appointed successors;                                                                                                   
02   (2)  require that all assets deposited in the trust be continuously kept                                             
03 within the United States;                                                                                               
04   (3)  provide for substitution of a new trustee in case of a vacancy by                                               
05 death, resignation, or other reason, subject to the prior written approval of the director;                             
06   (4)  require that the trustee continuously maintain a record sufficient to                                           
07 identify the assets of the trust fund;                                                                                  
08   (5)  require that trusteed assets consist only of cash, investments eligible                                         
09 for investment of the funds of domestic insurers, and accrued interest on the assets, if                                
10 collectible by the trustee, subject to the limits on investment of funds by domestic                                    
11 insurers under this title;                                                                                              
12   (6)  require that the trust be for the exclusive benefit, security, and                                              
13 protection of the policyholders, or policyholders and creditors, of the United States                                   
14 branch in the United States and that the trust be maintained as long as there is an                                     
15 outstanding liability of the alien insurer arising out of its transaction of insurance in                               
16 the United States; and                                                                                                  
17   (7)  provide that withdrawal of an asset may not be made or permitted                                                
18 by a trustee without the prior written approval of the director except                                                  
19   (A)  to make deposits required by law in a state for the security                                                   
20 or benefit of all policyholders, or policyholders and creditors, of the United                                          
21 States branch in the United States;                                                                                     
22   (B)  to withdraw funds deposited in another state under (A) of                                                      
23 this paragraph if                                                                                                       
24   (i)  the written trust agreement requires prior written                                                            
25 approval of the insurance supervising official of that other state;                                                     
26   (ii)  written notice of the nature and extent of the                                                               
27 withdrawal is provided to the director within 30 days of the withdrawal;                                                
28 and                                                                                                                     
29   (iii)  the total trusteed assets remaining are in excess of                                                        
30 the total assets required to be maintained in trust under (g) of this                                                   
31 section;                                                                                                                
01   (C)  upon the specific written direction of the United States                                                       
02 manager, who is duly authorized and is acting under either general or specific                                          
03 written authority previously given or delegated by the board of directors, to                                           
04 substitute other assets as permitted by this title if the substituted assets are of                                     
05 at least equal value and quality to those withdrawn;                                                                    
06   (D)  to transfer assets to an official liquidator or rehabilitator                                                  
07 under an order of a court of competent jurisdiction; or                                                                 
08   (E)  if provided under the terms of the written trust agreement,                                                    
09 to pay over to the United States manager of the United States branch, upon                                              
10 request, income, dividends, or interest accumulations of the assets of the trust                                        
11 fund that are in excess of the total assets required to be maintained in trust                                          
12 under (g) of this section.                                                                                              
13  (i)  A written trust agreement and all amendments to it shall be authenticated                                        
14 in a form and manner that the director may prescribe and may not take effect until                                      
15 approved by the director.  The director may not approve a trust agreement unless the                                    
16 director makes a written finding that                                                                                   
17   (1)  the written trust agreement or its amendments are sufficient in form                                            
18 and in conformity with law;                                                                                             
19   (2)  a person designated as a trustee is eligible to act in that capacity;                                           
20 and                                                                                                                     
21   (3)  the written trust agreement is adequate to protect the interests of the                                         
22 beneficiaries of the trust.                                                                                             
23  (j)  The director may approve written modifications of, or variations in, a                                           
24 written trust agreement upon a finding that the proposed changes are not prejudicial                                    
25 to the interests of the people of this state or the United States policyholders and                                     
26 creditors of the United States branch.                                                                                  
27  (k)  The director may conduct examinations of the trusteed assets of an                                               
28 authorized United States branch at the insurer's expense and may require the trustee                                    
29 or trustees to file a statement, in a form as prescribed by the director, certifying the                                
30 assets and amounts of the trust fund.                                                                                   
31  (l)  The director, upon finding that the requisites for the approval of the trust                                     
01 agreement no longer exist, may issue an order that withdraws approval of a written                                      
02 trust agreement and amendments to it.  An order issued under this subsection takes                                      
03 effect 10 days after being issued.                                                                                      
04  (m)  In addition to all other actions permitted under this title, refusal or neglect                                  
05 of a trustee to comply with the requirements of this title is a cause for suspension or                                 
06 revocation of the United States branch's certificate of authority or the liquidation of                                 
07 the alien insurer's United States branch.                                                                               
08  (n)  Annual statements under AS 21.09.200 and quarterly statements under                                              
09 AS 21.09.205 (1) may only relate to insurance transactions and affairs within the                                       
10 United States, assets held by or for the United States branch for the protection of                                     
11 policyholders and creditors within the United States, and liabilities incurred against                                  
12 those assets; and (2) may not contain a statement in regard to assets and business                                      
13 transacted in a place not described in this subsection.  The annual and quarterly                                       
14 statements shall be signed and verified by the United States manager, attorney-in-fact,                                 
15 or a duly empowered assistant United States manager of the United States branch.                                        
16  (o)  In a form prescribed by the director, an authorized United States branch                                         
17 shall file with its annual and quarterly statements a statement of trusteed surplus                                     
18 covering the same time period.  The trusteed surplus shall consist of the aggregate                                     
19 value of the United States branch's general state deposits and assets deposited with a                                  
20 trustee under this section, plus accrued interest income if the interest were collected                                 
21 by the states for the trustees, less the aggregate net amount of all its reserves and other                             
22 liabilities in the United States as determined under this subsection.  The items of                                     
23 securities and other property held under trust deeds shall be certified by the United                                   
24 States trustee.  To determine the net amount of the United States branch's liabilities                                  
25 in the United States to be reported in the statement of trusteed surplus, the United                                    
26 States branch shall adjust its total liabilities reported on its accompanying annual or                                 
27 quarterly statement as follows:                                                                                         
28   (1)  by adding back liabilities used to offset admitted assets reported in                                           
29 the accompanying annual or quarterly statement; and                                                                     
30   (2)  by deducting                                                                                                    
31   (A)  unearned premiums on agent's balances or uncollected                                                           
01 premiums not more than 90 days past due;                                                                                
02   (B)  reinsurance on losses with authorized insurers, less unpaid                                                    
03 reinsurance premiums;                                                                                                   
04   (C)  reinsurance recoverables on paid losses from unauthorized                                                      
05 insurers that are included as an asset in the annual statement, but only to the                                         
06 extent a liability for unauthorized recoverables as described in this paragraph                                         
07 are included in the liabilities report in the trusteed surplus statement;                                               
08   (D)  special state deposits held for the exclusive benefit of                                                       
09 policyholders, or policyholders and creditors, of a particular state not exceeding                                      
10 net liabilities reported for that state;                                                                                
11   (E)  secured accrued retrospective premiums;                                                                        
12   (F)  if a life insurer,                                                                                             
13   (i)  the amount of its policy loans to policyholders within                                                        
14 the United States, not exceeding the amount of legal reserve required                                                   
15 on an affected policy; and                                                                                              
16   (ii)  the net amount of uncollected and deferred                                                                   
17 premiums; and                                                                                                           
18   (G)  other nontrusteed assets, upon a written finding by the                                                        
19 director that the other nontrusteed assets secure liabilities in a substantially                                        
20 similar manner to those permitted under this subsection.                                                                
21  (p)  In addition to the annual and quarterly statements and the statements of                                         
22 trusteed surplus, the director may require additional information relating to total                                     
23 business or assets, or any portion of them, of the alien insurer or its United States                                   
24 branch.                                                                                                                 
25  (q)  In addition to the general statement of the financial condition of the United                                    
26 States branch, a report of examination must include a trusteed surplus statement as of                                  
27 the date of the examination.                                                                                            
28  (r)  In this section,                                                                                                 
29   (1)  "trusteed assets" are the assets maintained in a trust account under                                            
30 (g) of this section;                                                                                                    
31   (2)  "United States branch" means the business unit through which                                                    
01 business is transacted within the United States by an alien insurer and the assets and                                  
02 liabilities of the insurer within the United States applicable to that business.                                        
03    * Sec. 17.  AS 21.12.020(a) is amended to read:                                                                      
04  (a)  Credit for reinsurance transactions shall be allowed a domestic ceding                                           
05 insurer as either an asset or a deduction from liability on account of reinsurance ceded                                
06 only if the reinsurance is ceded to an                                                                                  
07   (1)  assuming insurer that is licensed to transact insurance or reinsurance                                          
08 in this state;                                                                                                          
09   (2)  assuming insurer that is accredited as a reinsurer in this state; an                                            
10 accredited reinsurer is one that                                                                                        
11   (A)  files evidence of submission [SUBMITS] to this state's                                                       
12 jurisdiction, submits to this state's authority to examine its books and records                                       
13 under AS 21.06.120, is licensed to transact insurance or reinsurance in at least                                       
14 one state that is accredited by the National Association of Insurance                                                   
15 Commissioners, or, in the case of a United States branch of an alien                                                   
16 admitted insurer, is entered through and licensed to transact insurance or                                              
17 reinsurance in at least one state that is accredited by the National                                                    
18 Association of Insurance Commissioners; [AND FILES ANNUALLY WITH                                                       
19 THE DIRECTOR A COPY OF THE REINSURER'S ANNUAL STATEMENT                                                                 
20 FILED WITH THE INSURANCE DEPARTMENT OF THE REINSURER'S                                                                  
21 STATE OF DOMICILE AND A COPY OF THE REINSURER'S MOST                                                                    
22 RECENT AUDITED FINANCIAL STATEMENT; OR]                                                                                 
23   (B)  [IN THE CASE OF A UNITED STATES BRANCH OF                                                                      
24 AN ALIEN ASSUMING INSURER, IS ENTERED THROUGH, AND                                                                      
25 LICENSED TO TRANSACT INSURANCE OR REINSURANCE IN, AT                                                                    
26 LEAST ONE STATE ACCREDITED BY THE NATIONAL ASSOCIATION                                                                  
27 OF INSURANCE COMMISSIONERS, FILES ANNUALLY WITH THE                                                                     
28 DIRECTOR A COPY OF ITS ANNUAL FINANCIAL STATEMENT THAT                                                                  
29 IS FILED WITH THE INSURANCE REGULATORY AGENCY OF ITS                                                                    
30 STATE OF DOMICILE, AND] maintains at least $20,000,000 in policyholder                                                  
31 surplus and whose accreditation has not been denied by the director within                                             
01 90 days of application to the director, or maintains less than $20,000,000                                              
02 in policyholder surplus and whose application for accreditation has been                                                
03 approved by the director; and                                                                                           
04   (C)  files annually with the director a copy of the reinsurer's                                                     
05 annual financial statement filed with the insurance department of the                                                   
06 reinsurer's state of domicile or state of entry and a copy of the reinsurer's                                           
07 most recent audited financial statement [THE SURPLUS REQUIREMENTS                                                      
08 IN THIS SUBPARAGRAPH DO NOT APPLY TO REINSURANCE CEDED                                                                  
09 AND ASSUMED UNDER A POOLING ARRANGEMENT AMONG                                                                           
10 INSURERS IN THE SAME HOLDING COMPANY SYSTEM];                                                                           
11   (3)  assuming insurer that is domiciled in a state, or in the case of a                                              
12 United States branch of an alien assuming insurer, is entered through a state accredited                                
13 by the National Association of Insurance Commissioners that employs standards                                           
14 regarding credit for reinsurance ceded substantially similar to those applicable under                                  
15 (1) and (2) of this subsection, the assuming insurer maintains a policyholder surplus                                   
16 of at least $20,000,000, and the assuming insurer submits to the authority of this state                                
17 to examine its books and records; the surplus requirements in this paragraph do not                                     
18 apply to reinsurance ceded and assumed under a pooling arrangement among insurers                                       
19 in the same holding company system;                                                                                     
20   (4)  assuming alien insurer that                                                                                     
21   (A)  maintains a trust fund in a qualified United States financial                                                  
22 institution for the payment of the valid claims of its United States policyholders                                      
23 and ceding insurers, and their assigns and successors in interest, that conforms                                        
24 to the following requirements:                                                                                          
25   (i)  the trust shall be established in a form approved by                                                          
26 the director; the trust instrument must provide that contested claims are                                               
27 valid and enforceable upon the final order of any court of competent                                                    
28 jurisdiction in the United States; the trust shall vest legal title to its                                              
29 assets in the trustees of the trust for its United States policyholders and                                             
30 ceding insurers, their assigns, and successors in interest; the trust and                                               
31 the assuming insurer are subject to examination as determined by the                                                    
01 director; the trust must remain in effect for so long as the assuming                                                   
02 insurer has outstanding liabilities due under the reinsurance agreements                                                
03 subject to the trust;                                                                                                   
04   (ii)  on or before March 1 of each year the trustees shall                                                         
05 report in writing to the director on the balance of the trust and list the                                              
06 trust's investments at the end of the preceding year, and shall certify the                                             
07 date of termination of the trust, if so planned, or certify that the trust                                              
08 does not expire before the following December 31;                                                                       
09   (iii)  in the case of a single assuming insurer, the trust                                                         
10 shall consist of trust money representing the assuming insurer's                                                        
11 liabilities attributable to business written in the United States and, in                                               
12 addition, include a trust surplus of not less than $20,000,000; the single                                              
13 assuming insurer shall make available to the director an annual                                                         
14 certification of the insurer's solvency by the insurer's domiciliary                                                    
15 regulator and by an independent public accountant;                                                                      
16   (iv)  in the case of a group, including incorporated and                                                         
17 [OF] individual unincorporated insurers, the trust shall consist of trust                                               
18 money representing the group's liabilities attributable to business                                                     
19 written in the United States and, in addition, include a trust surplus not                                              
20 less than $100,000,000; the incorporated members of the group may                                                      
21 not be engaged in any business other than underwriting as a                                                             
22 member of the group and are subject to the same level of solvency                                                       
23 regulation and control by the group's domiciliary regulator as are                                                      
24 the unincorporated members; the group shall make available to the                                                      
25 director an annual certification of the solvency of each insurer [OF                                                  
26 THE INDIVIDUAL UNINCORPORATED INSURERS] by the group's                                                                  
27 domiciliary regulator and by an independent certified public accountant,                                               
28 or, for a Canadian or British insurer, an independent Canadian or                                                       
29 British chartered accountant;                                                                                          
30   (v)  in the case of a group of incorporated insurers under                                                         
31 common administration that complies with the reporting requirements                                                     
01 contained in (ii) of this subparagraph, that has continuously transacted                                                
02 an insurance business outside the United States for at least three years                                                
03 immediately before making application for accreditation, that submits                                                   
04 to this state's authority to examine its books and records and bears the                                                
05 expense of the examination, and that has aggregate policyholders'                                                       
06 surplus of $10,000,000,000, the trust shall be in an amount equal to the                                                
07 group's several liabilities attributable to business ceded by United States                                             
08 ceding insurers to a member of the group under reinsurance contracts                                                    
09 issued in the name of the group, and the group shall maintain a joint                                                   
10 trustee surplus, of which $100,000,000 shall be held jointly for the                                                    
11 benefit of United States ceding insurers of a member of the group as                                                    
12 additional security for the group's liabilities, and each member of the                                                 
13 group shall make available to the director an annual certification of the                                               
14 member's solvency by the member's domiciliary regulator and the                                                         
15 member's independent certified public accountant, or, for a Canadian                                                   
16 or British insurer, the member's independent Canadian or British                                                        
17 chartered accountant; and                                                                                              
18   (B)  reports annually to the director information substantially the                                                 
19 same as that required to be reported on the National Association of Insurance                                           
20 Commissioners' annual statement form by licensed insurers to enable the                                                 
21 director to determine the sufficiency of the trust fund;                                                                
22   (5)  assuming insurer that does not meet the requirements of (1) - (4)                                               
23 of this subsection, but only with respect to the insurance of risks located in                                          
24 jurisdictions where the reinsurance is required by applicable law or regulation of that                                 
25 jurisdiction.                                                                                                           
26    * Sec. 18.  AS 21.12.020(g) is amended to read:                                                                      
27  (g)  An [A LIFE] insurer may receive credit for reinsurance transactions if the                                     
28 reinsurance agreement meets all applicable requirements established by the director.                                    
29    * Sec. 19.  AS 21.14.040 is amended to read:                                                                         
30  Sec. 21.14.040.  AUTHORIZED CONTROL LEVEL EVENT.  If an authorized                                                    
31 control level event occurs, the director shall take the action necessary                                                
01   (1)  under AS 21.14.030(a) [AS 21.14.030(b)] against the insurer; or                                               
02   (2)  to place the insurer under regulatory control under AS 21.78 if,                                                
03 after a hearing under AS 21.06.180 - 21.06.240, the director determines it to be in the                                 
04 best interest of the policyholders and creditors of the insurer, and of the public.                                     
05    * Sec. 20.  AS 21.18.060(b) is amended to read:                                                                      
06  (b)  The director may require that the reserves be equal to the unearned                                              
07 portions of the gross premiums in force after deducting applicable reinsurance in                                       
08 solvent  insurers as computed on each respective risk from the policy's date of issue.                                  
09 [EXCEPT AS REQUIRED BY THE DIRECTOR UNDER THIS SUBSECTION, THE                                                          
10 PORTIONS OF THE GROSS PREMIUM IN FORCE, LESS APPLICABLE                                                                 
11 REINSURANCE IN SOLVENT INSURERS, TO BE HELD AS AN UNEARNED                                                              
12 PREMIUM RESERVE SHALL BE COMPUTED ACCORDING TO THE                                                                      
13 FOLLOWING TABLE:                                                                                                        
14  TERM FOR WHICH POLICY                                          RESERVE FOR UNEARNED                                    
15  WAS WRITTEN       PREMIUM                                                                                              
16  1 YEAR OR LESS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1/2                                   
17  2 YEARS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1ST YEAR 3/4                                   
18                                                                          2ND YEAR 1/4                                   
19  3 YEARS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1ST YEAR 5/6                                   
20                                                                          2ND YEAR 1/2                                   
21                                                                          3RD YEAR 1/6                                   
22  4 YEARS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1ST YEAR 7/8                                   
23                                                                          2ND YEAR 5/8                                   
24                                                                          3RD YEAR 3/8                                   
25                                                                          4TH YEAR 1/8                                   
26  5 YEARS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1ST YEAR 9/10                                   
27                                                                         2ND YEAR 7/10                                   
28                                                                          3RD YEAR 1/2                                   
29                                                                         4TH YEAR 3/10                                   
30                                                                         5TH YEAR 1/10                                   
31  OVER 5 YEARS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PRO RATA.]                                   
01    * Sec. 21.  AS 21.18.060(c) is amended to read:                                                                      
02  (c)  An [IN LIEU OF COMPUTATION ACCORDING TO THE TABLE IN                                                           
03 (b) OF THIS SECTION, THE] insurer shall [AT ITS OPTION MAY] compute all of                                            
04 the reserves on a monthly or more frequent pro rata basis.                                                              
05    * Sec. 22.  AS 21.18.090 is amended to read:                                                                         
06  Sec. 21.18.090.  LOSS RESERVES, LIABILITY INSURANCE, AND                                                              
07 WORKERS' COMPENSATION.  Where required in the form of annual statement                                                  
08 required of the insurer, the reserve for outstanding losses under insurance against loss                                
09 or damage from accident to or injuries suffered by an employee or other person and                                      
10 for which the insured is liable shall be computed as follows:                                                           
11   (1)  for all liability claims under policies written more than three                                                
12 years before the end of the calendar year covered by the annual statement, the                                          
13 reserve shall be the undiscounted value of the determined and the estimated                                             
14 future payments [SUITS BEING DEFENDED UNDER POLICIES WRITTEN MORE                                                      
15 THAN                                                                                                                    
16   (A)  10 YEARS BEFORE THE DATE THE STATEMENT IS                                                                      
17 MADE, $1,500 FOR EACH SUIT;                                                                                             
18   (B)  FIVE OR MORE AND LESS THAN 10 YEARS BEFORE                                                                     
19 THE STATEMENT IS MADE, $1,000 FOR EACH SUIT;                                                                            
20   (C)  THREE OR MORE AND LESS THAN FIVE YEARS                                                                         
21 BEFORE THE STATEMENT IS MADE, $850 FOR EACH SUIT];                                                                      
22   (2)  for all liability policies written during the three years immediately                                           
23 preceding the date the statement is made, the reserve shall be the greater of 60                                      
24 percent of the earned liability premiums of each of the three years less all losses and                                 
25 expense payments made under liability policies written in the corresponding years or                                   
26 the undiscounted value of the known and unknown claims; [BUT THE RESERVE,                                              
27 FOR THE FIRST OF THE THREE YEARS, SHALL BE NOT LESS THAN $750                                                           
28 FOR EACH OUTSTANDING LIABILITY SUIT ON THE YEAR'S POLICIES];                                                            
29   (3)  for all workers' compensation claims under policies written more                                                
30 than three years before the end of the calendar year covered by the annual                                          
31 statement [IS MADE], the reserve may not [SHALL] be less than the present value                                     
01 at four percent interest of the determined and the estimated future payments;                                           
02   (4)  for all workers' compensation claims under policies written in the                                              
03 three years immediately preceding the end of the  calendar year covered by [DATE]                                     
04 the annual statement [IS MADE], the reserve may not [SHALL] be less than 65                                       
05 percent of the earned workers' compensation premiums of each of the three years, less                                 
06 all loss and loss expense payments made in connection with the claims under policies                                    
07 written in the corresponding years; [BUT IN THE FIRST YEAR OF THE                                                       
08 THREE-YEAR PERIOD,] the reserve may not [SHALL] be [NOT] less than the                                                
09 present value at four [4] percent interest of the determined and the estimated unpaid                                 
10 compensation claims under policies written during the three-year period [YEAR].                                       
11    * Sec. 23.  AS 21.18.110(a) is amended to read:                                                                      
12  (a)  The director shall annually value, or cause to be valued, the reserve                                            
13 liabilities (hereinafter called reserves) for all outstanding life insurance policies and                               
14 annuity and pure endowment contracts of every life insurer doing business in this state,                                
15 and may certify the amount of the reserves, specifying the mortality table or tables,                                   
16 rate or rates of interest, and methods (net level premium method or other) used in the                                  
17 calculation of the reserves.  In calculating the reserves, the director may use group                                   
18 methods and approximate averages for fractions of a year or otherwise.  For an alien                                    
19 insurer, the valuation shall be limited to its insurance transactions in the United States.                             
20 For the purpose of making the valuation the director may employ a competent actuary                                     
21 who shall be paid by the insurer for which the service is rendered [; BUT A                                             
22 DOMESTIC INSURER MAY MAKE THE VALUATION AND IT MAY BE                                                                   
23 RECEIVED BY THE DIRECTOR UPON SATISFACTORY PROOF OF ITS                                                                 
24 CORRECTNESS].  For a foreign or alien insurer, the director may accept, in [IN]                                       
25 lieu of the valuation of the reserves required of a foreign or alien insurer, [THE                                      
26 DIRECTOR MAY ACCEPT] a valuation made, or caused to be made, by the                                                     
27 insurance supervisory official of a state or other jurisdiction if the valuation complies                               
28 with the minimum standard provided in this section and if the official of the state or                                  
29 jurisdiction accepts as sufficient and valid for all legal purposes the certificate of                                  
30 valuation of the director when the certificate states the valuation was made in a                                       
31 specified manner in which the aggregate reserves would be at least as large as if they                                  
01 had been computed in the manner prescribed by the law of that state or jurisdiction.                                    
02 An insurer that at any time adopted a standard of valuation producing greater aggregate                                 
03 reserves than those calculated according to the minimum standard provided in this                                       
04 section may, with the approval of the director, adopt a lower standard of valuation, but                                
05 not lower than the minimum provided in this section.                                                                    
06    * Sec. 24.  AS 21.18.110(n) is amended to read:                                                                      
07  (n)  The actuarial opinion must                                                                                       
08   (1)  be submitted with the annual statement reflecting the valuation of                                              
09 the reserve liabilities;                                                                                                
10   (2)  apply to all business in force, including individual and group health                                           
11 insurance plans;                                                                                                        
12   (3)  be based on standards adopted by the Actuarial Standards Board;                                                 
13 and                                                                                                                     
14   (4)  unless exempted by regulation, include an assessment as to                                                    
15 whether the reserves and related actuarial items held in support of the policies and                                    
16 contracts, when considered in light of the assets held by an insurer with respect to the                                
17 reserves and related actuarial items, including investment earnings on the assets and                                   
18 considerations anticipated to be received and retained under policies and contracts,                                    
19 make adequate provision for an insurer's obligations under a policy or contract                                         
20 including the benefits under and expenses associated with a policy or contract.                                         
21    * Sec. 25.  AS 21.18.110(q) is amended to read:                                                                      
22  (q)  A qualified actuary who submits an opinion under (m) of this section                                             
23   (1)  is not liable for damages to a person, other than the insurance                                                 
24 company and the director, for an act, error, omission, decision, or conduct with respect                                
25 to the actuary's opinion except in a case of fraud or wilful misconduct;                                                
26   (2)  is subject to disciplinary action by the director; and                                                          
27   (3)  shall prepare [INCLUDE] a memorandum, in form and substance                                                   
28 acceptable to the director, to support the actuarial opinion.                                                           
29    * Sec. 26.  AS 21.18.110(r) is amended to read:                                                                      
30  (r)  If the insurer fails to provide a supporting memorandum as requested by                                         
31 the director [REQUIRED BY (q)(3) OF THIS SECTION] within a period specified                                            
01 by regulation or the director determines that the supporting memorandum fails to meet                                   
02 the standards adopted by regulation or is otherwise unacceptable to the director, the                                   
03 director may engage a qualified actuary, at the expense of the insurer, to review the                                   
04 opinion and the basis for the opinion and to prepare a supporting memorandum as                                         
05 required under (q) of this section.                                                                                     
06    * Sec. 27.  AS 21.21.230 is amended to read:                                                                         
07  Sec. 21.21.230.  SAVINGS AND LOAN.  To the extent that the account is                                                 
08 insured by the Federal Deposit [SAVINGS AND LOAN] Insurance Corporation, an                                           
09 insurer may invest in share or savings accounts of savings and loan and building and                                    
10 loan associations.                                                                                                      
11    * Sec. 28.  AS 21.21.250(a) is amended to read:                                                                      
12  (a)  An insurer may make loans or investments not otherwise expressly                                                 
13 permitted under this chapter, in aggregate amount not over five percent of the insurer's                                
14 assets and not over one percent of the insurer's assets for [OF] any one loan or                                    
15 investment, if the loan or investment fulfills the requirements of AS 21.21.030, and                                    
16 otherwise qualifies as a sound investment. However, a loan or investment may not be                                     
17 represented by                                                                                                          
18   (1)  an item described in AS 21.18.030, or a loan or investment                                                      
19 otherwise expressly prohibited;                                                                                         
20   (2)  agents' balances, or amounts advanced to or owing by agents or                                                  
21 former agents of the insurer, whether or not secured; except policy loans, mortgage                                     
22 loans, and collateral loans otherwise authorized under this chapter;                                                    
23   (3)  a category of loans or investments eligible under other provisions                                              
24 of this chapter; or                                                                                                   
25   (4)  an asset theretofore acquired or held by the insurer under any other                                            
26 category of loans or investments eligible under this chapter.                                                           
27    * Sec. 29.  AS 21.21.370(a) is amended to read:                                                                      
28  (a)  A domestic insurer may [NOT] acquire, directly or indirectly, a medium                                           
29 grade or lower grade obligation of an institution if, after giving effect to the                                        
30 acquisition,                                                                                                            
31   (1)  the aggregate amount of all medium grade and lower grade                                                        
01 obligations held by the domestic insurer does not exceed [EXCEEDS] 20 percent of                                      
02 its admitted assets and if not more than                                                                              
03   (A)  10 percent of its admitted assets consist of obligations rated                                                 
04 four, five, or six by the securities valuation office;                                                                  
05   (B)  three percent of its admitted assets consist of obligations                                                    
06 rated five or six by the securities valuation office; and                                                               
07   (C)  one percent of its admitted assets consist of obligations                                                      
08 rated six by the securities valuation office; and [OR]                                                                
09   (2)  the aggregate amount of all medium grade and [OR] lower grade                                                 
10 obligations held by the domestic insurer does not exceed [EXCEEDS] 30 percent of                                      
11 its policyholders' surplus account as shown by the insurer's most recent report filed                                   
12 under AS 21.06.150, AS 21.09.200, or 21.09.205.                                                                         
13    * Sec. 30.  AS 21.22.010(g) is amended to read:                                                                      
14  (g)  The provisions of this section do not apply to                                                                   
15   (1)  an offer of, request for, invitation for, or agreement regarding [,                                           
16 OR] acquisition of a voting security that, immediately before the consummation of the                                   
17 offer, request, invitation, agreement, or acquisition, was not issued and outstanding; or                               
18   (2)  an offer, request, invitation, agreement, or acquisition that the                                               
19 director by order may exempt as not having been made or entered into for the purpose                                    
20 and not having the effect of changing or influencing the control of the domestic                                        
21 insurer.                                                                                                                
22    * Sec. 31.  AS 21.22.030 is amended by adding a new subsection to read:                                              
23  (d)  The director may retain at the acquiring person's expense an attorney,                                           
24 actuary, accountant, or other expert not otherwise a part of the director's staff, if                                   
25 reasonably necessary to assist the director in reviewing the proposed acquisition of                                    
26 control.                                                                                                                
27    * Sec. 32.  AS 21.22.060(b) is amended to read:                                                                      
28  (b)  Every insurer subject to registration shall file a registration statement on                                     
29 a form provided by the director, that must contain current information about                                            
30   (1)  the capital structure, general financial condition, ownership, and                                              
31 management of the insurer and any person controlling the insurer;                                                       
01   (2)  the identity of every member of the insurance holding company                                                   
02 system;                                                                                                                 
03   (3)  the following agreements in force, relationships subsisting, and                                                
04 transactions currently outstanding between the insurer and its affiliates:                                              
05   (A)  loans, other investments, or purchases, sales, or exchanges                                                    
06 of securities of the affiliates by the insurer or of the insurer by its affiliates;                                     
07   (B)  purchases, sales, or exchanges of assets;                                                                      
08   (C)  transactions not in the ordinary course of business;                                                           
09   (D)  guarantees or undertakings for the benefit of an affiliate that                                                
10 result in an actual contingent exposure of the insurer's assets to liability, other                                     
11 than insurance contracts entered into in the ordinary course of the insurer's                                           
12 business;                                                                                                               
13   (E)  all management and service contracts and all cost-sharing                                                      
14 arrangements [, OTHER THAN COST ALLOCATION ARRANGEMENTS                                                                 
15 BASED UPON GENERALLY ACCEPTED ACCOUNTING PRINCIPLES];                                                                   
16 and                                                                                                                     
17   (F)  reinsurance agreements [COVERING ALL OR                                                                        
18 SUBSTANTIALLY ALL OF ONE OR MORE LINES OF INSURANCE OF                                                                  
19 THE CEDING COMPANY]; and                                                                                              
20   (4)  other matters concerning transactions between registered insurers                                               
21 and any affiliates that may be included from time to time in a registration form                                        
22 adopted or approved by the director.                                                                                    
23    * Sec. 33.  AS 21.22.060(c) is amended to read:                                                                      
24  (c)  The director may permit an authorized insurer that is a member of a                                              
25 holding company system subject to registration under the laws or regulations of its                                     
26 state of domicile that are in the opinion of the director substantially similar to those                                
27 contained in this chapter to satisfy the requirements of (a) of this section by filing a                                
28 statement in accordance with the laws of its state of domicile [EXCEPT THAT THE                                         
29 DIRECTOR MAY AT ANY TIME REQUIRE A COPY OF THAT STATEMENT BE                                                            
30 FILED WITH THE DIRECTOR].                                                                                               
31    * Sec. 34.  AS 21.22.060(d) is amended to read:                                                                      
01  (d)  Information [NO INFORMATION] need not be disclosed on the                                                    
02 registration statement filed under (b) of this section if that information is not material                              
03 for the purposes of this section.  Unless the director by regulation or order provides                                  
04 otherwise, sales, purchases, exchanges, loans or extensions of credit, or investments,                                  
05 involving one-half of one percent or less of an insurer's admitted assets or five percent                            
06 or less of the policyholder's surplus as of the 31st day of December of the calendar                                   
07 year in which the transaction took place are not considered material for purposes of                                    
08 this section.                                                                                                           
09    * Sec. 35.  AS 21.22.060(k) is amended to read:                                                                      
10  (k)  An insurer subject to registration under (a) of this section shall register                                      
11 annually by April 1 of each year for the previous calendar year unless, for good cause                                  
12 shown, the director extends the time for registration.  The director may require an                                     
13 insurer [AUTHORIZED TO DO BUSINESS IN THE STATE, THAT IS A MEMBER                                                       
14 OF A HOLDING COMPANY SYSTEM AND] that is allowed to register as                                                        
15 provided [NOT SUBJECT TO REGISTRATION] under (c) [(a)] of this section, to                                           
16 furnish a copy of                                                                                                       
17   (1)  the registration statement;                                                                                  
18   (2)  [,] the summary specified in (l) of this section; [,] or                                                     
19   (3)  other information filed by the insurer with the insurance regulatory                                          
20 authority of the insurer's state of domicile.                                                                           
21    * Sec. 36.  AS 21.27.010(a) is amended to read:                                                                      
22  (a)  Except as provided otherwise in this chapter, a [A] person may not act                                         
23 as or represent to be an insurance producer, managing general agent, reinsurance                                        
24 intermediary broker, reinsurance intermediary manager, surplus lines broker, or                                         
25 independent adjuster in this state or relative to a subject resident, located, or to be                                 
26 performed in this state unless licensed under this chapter. A person may not act as or                                  
27 represent to be a managing general agent, reinsurance intermediary broker, or                                           
28 reinsurance intermediary manager representing an insurer domiciled in this state                                        
29 regarding a risk located outside this state unless licensed by this state.                                              
30    * Sec. 37.  AS 21.27.020 is amended by adding new subsections to read:                                               
31  (f)  The director may adopt regulations establishing additional education or                                          
01 experience requirements for applicants or licensees under this chapter upon due                                         
02 consideration of the availability and accessibility of education and training                                           
03 opportunities in rural areas of the state.  Regulations adopted under this subsection are                               
04 subject to the following provisions:                                                                                    
05   (1)  additional educational or experience requirements may not apply to                                              
06 a licensee who has been licensed by the division of insurance before January 1, 1980;                                   
07   (2)  a licensee shall complete at least 24 credit hours of approved                                                  
08 continuing education courses during each two-year license period;                                                       
09   (3)  if a licensee has accumulated more credit hours than required under                                             
10 (2) of this subsection by the end of the license period, a maximum of eight hours may                                   
11 be carried over to meet the requirements of (2) of this subsection in the next license                                  
12 period;                                                                                                                 
13   (4)  a program or seminar may not be approved as an acceptable                                                       
14 continuing education program unless it is a formal program of learning that contributes                                 
15 to the professional competence of the licensee; individual study programs or                                            
16 correspondence courses may be used to fulfill continuing education requirements if                                      
17 approved by the director;                                                                                               
18   (5)  a nonresident licensee is exempt from the requirements of this                                                  
19 subsection if the licensee submits evidence satisfactory to the director that the licensee                              
20 has satisfied any continuing education requirements of the licensee's domiciliary state.                                
21  (g)  The director shall establish a continuing education advisory committee.                                          
22 The committee consists of one representative from the division of insurance, one life                                   
23 and disability insurance representative, one limited lines insurance representative, one                                
24 property and casualty insurance representative, and one independent insurance adjuster                                  
25 representative.  Each committee representative from the insurance industry must                                         
26 possess a valid, current insurance license issued in this state for the field to be                                     
27 represented.                                                                                                            
28  (h)  The director may make arrangements, including contracting with an outside                                        
29 agency, for administrative services.                                                                                    
30    * Sec. 38.  AS 21.27.025(a) is amended to read:                                                                      
31  (a)  A licensee shall notify the director within 30 days in writing by certified                                      
01 mail of a change in residence, employment that is licensed under this chapter, place                                    
02 of business, legal name, fictitious name or alias, mailing address, or phone number;                                  
03 a suspension, [OR] revocation, or disciplinary action of a license by another state or                              
04 jurisdiction; or a conviction of a misdemeanor or felony.                                                               
05    * Sec. 39.  AS 21.27.060(d) is amended to read:                                                                      
06  (d)  This section does not apply to an applicant                                                                      
07   (1)  for a limited license under AS 21.27.150(1), (2), or (6);                                                     
08   (2)  who, at any time within the two-year period immediately preceding                                               
09 the date the current pending application is received by the division, had been licensed                                 
10 in good standing in this state under a license requiring substantially similar                                          
11 qualifications as required by the license applied for; or                                                               
12   (3)  whose license in its [THE] resident jurisdiction requires the same                                            
13 qualifications as the license applied for in this state if the license in all jurisdictions                             
14 is in good standing [AND ITS RESIDENT JURISDICTION IS ACCREDITED BY                                                     
15 THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS].                                                                   
16    * Sec. 40.  AS 21.27.100 is amended by adding a new subsection to read:                                              
17  (e)  An individual in a firm who acts solely on behalf of a firm that is                                              
18 appointed as an agent on behalf of an admitted insurer under this section, may not be                                   
19 required to also have an appointment if the individual in the firm is licensed with that                                
20 firm.                                                                                                                   
21    * Sec. 41.  AS 21.27.130 is amended to read:                                                                         
22  Sec. 21.27.130.  FORM AND CONTENT OF LICENSES.  A license shall be                                                    
23 in the form the director prescribes and must set out                                                                    
24   (1)  the name and [MAILING] address of the licensee, and, if the                                                   
25 licensee is required to have a place of business, the physical address of the place of                                  
26 business;                                                                                                               
27   (2)  if for a firm, the name of the principal or manager of the firm;                                                
28   (3)  the kind or class of insurance the licensee is licensed to handle;                                              
29   (4)  the effective date and expiration date of the license;                                                          
30   (5)  the condition under which the license is granted;                                                               
31   (6)  the date of issuance of the license;                                                                            
01   (7)  each fictitious name and alias under which the licensee may do                                                  
02 business; and                                                                                                           
03   (8)  other information required by the director.                                                                     
04    * Sec. 42.  AS 21.27.360(b) is amended to read:                                                                      
05  (b)  All money, except that made payable to the insurer, representing premium                                         
06 taxes and fees, premiums or return premiums received by the licensee, shall be                                          
07 received in the fiduciary account of the licensee and shall be promptly accounted for                                   
08 and paid to the person entitled to the money.  The fiduciary account shall be located                                  
09 in this state unless the licensee is licensed as a nonresident under AS 21.27.270.                                     
10 For purposes of this section, the fiduciary account of the firm shall be considered the                                 
11 fiduciary account of an individual licensee acting on behalf of the firm and shall be                                   
12 the responsibility of the firm.  Money deposited into a fiduciary account may not be                                    
13 commingled or otherwise combined with other money, except as allowed under (d) of                                       
14 this section and AS 21.27.365.                                                                                          
15    * Sec. 43.  AS 21.27.380(a) is amended to read:                                                                      
16  (a)  Except as provided in this title, the director may renew a license biennially                                    
17 on a date set by the director if the licensee continues to be qualified under this chapter                             
18 and on or before the close of business of the renewal date, meets all renewal                                           
19 requirements established by regulation and pays the [IF] renewal license fees set                                    
20 under AS 21.06.250 for each license to [ARE RECEIVED BY] the director [ON OR                                          
21 BEFORE THE CLOSE OF BUSINESS OF THE RENEWAL DATE].  A licensee is                                                       
22 responsible for knowing the date that a license lapses and for renewing a license before                                
23 expiration.  The director shall mail a renewal notice to the licensee's current address                                 
24 on file with the director 30 days before the renewal date.                                                              
25    * Sec. 44.  AS 21.27.420 is amended by adding a new subsection to read:                                              
26  (c)  With the consent of an applicant or licensee, the director may issue or                                          
27 renew a license with restrictions upon the scope of the person's license or may                                         
28 otherwise restrict or condition the activities of the licensee if the director determines                               
29 that the person has violated the provisions of this title or to protect the public from                                 
30 injury or potential injury.                                                                                             
31    * Sec. 45.  AS 21.27.530 is amended to read:                                                                         
01  Sec. 21.27.530.  INSURANCE PRODUCER QUALIFICATIONS.  In addition                                                      
02 to the general qualifications under AS 21.27.020, to qualify for issuance or renewal of                                 
03 an insurance producer license, an applicant or licensee                                                                 
04   (1)  must possess the competence necessary to fulfill the responsibilities                                           
05 of an insurance producer;                                                                                               
06   (2)  if previously licensed in good standing in this state as an insurance                                           
07 producer, must not have had a license suspended or revoked within the previous four                                     
08 calendar years;                                                                                                         
09   (3)  for a fraternal society limited insurance producer license, shall file                                          
10 with the application a statement by an officer or director of the appointing fraternal                                  
11 society that affirms that the society has satisfied itself that the applicant is trustworthy                            
12 and competent to act as its insurance agent;                                                                            
13   (4)  for a license with a scope that includes variable contracts, must                                               
14 either be currently registered with the federal Securities and Exchange Commission as                                   
15 a broker-dealer or personally take and pass, to the satisfaction of the director, tests of                              
16 the knowledge and competence of the applicant concerning securities; and                                                
17   (5)  except for an applicant or licensee who represents to be and acts                                               
18 solely on behalf of admitted insurers as an agent and who does not receive money                                        
19 required to be received in the fiduciary account of the licensee, shall file with the                                   
20 application and maintain in force while licensed a bond in the amount of $10,000,                                       
21 unless a greater amount is required by another provision of this title; a licensee who                                 
22 maintains more than one place of business may satisfy the bond requirement with                                         
23 a single bond.                                                                                                         
24    * Sec. 46.  AS 21.27.570(a)(3)(B) is amended to read:                                                                
25   (B)  the controlling insurance producer shall render accounts to                                                    
26 the controlled insurer detailing all transactions, including information in the                                      
27 accounts necessary to support compensation, commissions, charges, and other                                            
28 fees received by, or owing to, the controlling producer;                                                                
29    * Sec. 47.  AS 21.27.620(j) is amended to read:                                                                      
30  (j)  If the director determines after a hearing under AS 21.06.170 - 21.06.240                                        
31 that a managing general agent caused loss or damage arising out of a violation of                                     
01 AS 21.27.590 - 21.27.630 to an insurer, the director may order the managing general                                     
02 agent to make restitution to the insurer, receiver, [THE] rehabilitator, or [THE]                                     
03 liquidator of the insurer for the loss.  Restitution ordered under this subsection is in                                
04 addition to any other liability of the managing general agent and does not affect the                                   
05 rights of a policy holder, claimant, creditor, or third party.  The director may, at the                               
06 request of the insurer, maintain or bring a civil action brought by or on behalf                                        
07 of the insurer and its policyholders and creditors for recovery of compensatory                                         
08 damages for the benefit of the insurer and its policyholders and creditors or seek                                      
09 other appropriate relief.  If an order of rehabilitation or liquidation of the insurer                                  
10 has been entered under AS 21.78, the receiver appointed under the order                                                 
11 determines that a person has not materially complied with AS 21.27.590 -                                                
12 21.27.630 or an order of the director, and the insurer suffers loss or damage from                                      
13 the noncompliance, the receiver may bring a civil action for the recovery of                                            
14 damages or other appropriate sanctions for the benefit of the insurer.                                                 
15    * Sec. 48.  AS 21.27.690(b) is amended to read:                                                                      
16  (b)  An [A DOMESTIC] insurer may use a nonresident reinsurance                                                      
17 intermediary broker who is not licensed under this chapter if the person is licensed in                                 
18 good standing as a resident reinsurance intermediary broker by an insurance regulator                                   
19 of another state that is accredited by the National Association of Insurance                                            
20 Commissioners.  Upon written request, the director may grant written permission for                                     
21 a domestic insurer to use an alien reinsurance intermediary broker not licensed by and                                  
22 without a place of business in a jurisdiction subject to accreditation by the National                                  
23 Association of Insurance Commissioners if the alien reinsurance intermediary broker                                     
24 is licensed in good standing by its domiciliary insurance regulator.  The domestic                                      
25 insurer and unlicensed reinsurance intermediary broker are subject to all other                                         
26 requirements of this section.                                                                                           
27    * Sec. 49.  AS 21.27.690(e) is amended to read:                                                                      
28  (e)  If the director determines after a hearing under AS 21.06.170 - 21.06.240                                        
29 that a reinsurance intermediary broker caused losses or damage arising out of a                                       
30 violation of AS 21.27.670 - 21.27.700 to an insurer or reinsurer, the director may order                                
31 the reinsurance intermediary broker to make restitution to the insurer, reinsurer,                                     
01 receiver, rehabilitator, or liquidator of the insurer or reinsurer for the net losses                                  
02 incurred by the insurer or reinsurer.  Restitution ordered under this subsection is in                                  
03 addition to any other liability of the reinsurance intermediary broker and does not                                     
04 affect the rights of a policyholder, claimant, creditor, or third party.  The director                                 
05 may, at the request of the insurer, maintain or bring a civil action brought by or                                      
06 on behalf of the reinsurer or insurer and its policyholders and creditors for                                           
07 recovery of compensatory damages for the benefit of the reinsurer or insurer and                                        
08 its policyholders and creditors or seek other appropriate relief.  If an order of                                       
09 rehabilitation or liquidation of the insurer has been entered under AS 21.78, the                                       
10 receiver appointed under the order determines that a person has not materially                                          
11 complied with AS 21.27.670 - 21.27.700 or an order of the director, and the                                             
12 insurer suffers loss or damage from the noncompliance, the receiver may bring                                           
13 a civil action for the recovery of damages or other appropriate sanctions for the                                       
14 benefit of the insurer.                                                                                                
15    * Sec. 50.  AS 21.27.760(j) is amended to read:                                                                      
16  (j)  If the director determines after a hearing under AS 21.06.170 - 21.06.240                                        
17 that a reinsurance intermediary manager caused losses or damage arising out of a                                      
18 violation of AS 21.27.730 - 21.27.770 to an insurer or reinsurer, the director may order                                
19 the reinsurance intermediary manager to make restitution to the insurer, reinsurer,                                    
20 receiver, rehabilitator, or liquidator of the insurer or reinsurer for the net losses                                  
21 incurred by the insurer or reinsurer.  Restitution ordered under this subsection is in                                  
22 addition to any other liability of the reinsurance intermediary manager and does not                                    
23 affect the rights of a policyholder, claimant, creditor, or third party.  The director                                 
24 may, at the request of the insurer, maintain or bring a civil action brought by or                                      
25 on behalf of the reinsurer or insurer and its policyholders and creditors for                                           
26 recovery of compensatory damages for the benefit of the reinsurer or insurer and                                        
27 its policyholders and creditors or seek other appropriate relief.  If an order of                                       
28 rehabilitation or liquidation of the insurer has been entered under AS 21.78, the                                       
29 receiver appointed under the order determines that a person has not materially                                          
30 complied with AS 21.27.730 - 21.27.770 or an order of the director, and the                                             
31 insurer suffers loss or damage from the noncompliance, the receiver may bring                                           
01 a civil action for the recovery of damages or other appropriate sanctions for the                                       
02 benefit of the insurer.                                                                                                
03    * Sec. 51.  AS 21.34.040(c)(4) is amended to read:                                                                   
04   (4)  a Lloyd's or other similar group including incorporated and                                                    
05 individual unincorporated underwriters,  [GROUP OF ALIEN INDIVIDUAL                                                  
06 INSURERS] may qualify if it maintains a trust fund in an amount not less than                                           
07 $50,000,000, as security to the full amount, for the protection of all its policy holders                               
08 and creditors of each member of the group in the United States; the incorporated                                       
09 members may not be engaged in any business other than underwriting as a                                                 
10 member of the group and shall be subject to the same level of solvency regulation                                       
11 and control by the group's domiciliary regulator as are the unincorporated                                            
12 members; the trust fund must consist of instruments of substantially the same                                          
13 character and quality as those that are eligible investments for the capital and statutory                              
14 reserves of admitted insurers authorized to write like kinds of insurance in this state                                 
15 or of irrevocable, clean, and unconditional letters of credit; the trust fund must have                                 
16 an expiration date that at no time is less than five years;                                                             
17    * Sec. 52.  AS 21.34.080(c) is amended to read:                                                                      
18  (c)  A producing broker shall execute and deliver to the surplus lines broker not                                     
19 later than the end of each month on a form prescribed by the director, and a surplus                                    
20 lines broker shall file with the director with the report required by (a) of this section                               
21 or with the surplus lines association with the evidence of insurance required by (b) of                                 
22 this section, for surplus lines insurance first placed or renewed in the preceding                                      
23 calendar month, an affidavit that shall be open to public inspection, as to the diligent                                
24 efforts to place the coverage with admitted insurers, and the results of those efforts.                                 
25 The affidavit must contain a statement by the producing broker that the insured was                                   
26 expressly informed in writing before the [PLACEMENT OF THE SURPLUS LINES]                                             
27 insurance contract or coverage was bound that the surplus lines insurer with whom                                     
28 the insurance was to be placed is not licensed in this state, is not subject to this state's                            
29 supervision, and, in the event of the insolvency of the surplus lines insurer, losses will                            
30 not be covered under AS 21.80 (Alaska Insurance Guaranty Association Act).                                              
31    * Sec. 53.  AS 21.34.110 is amended to read:                                                                         
01  Sec. 21.34.110.  SURPLUS LINES BROKER'S DUTY TO NOTIFY                                                                
02 INSURED.  (a)  A contract of insurance placed by a surplus lines broker under this                                    
03 chapter is not binding upon the insured and a premium charged is not due and payable                                    
04 until                                                                                                                   
05   (1)  the surplus lines broker has notified the insured in writing, a copy                                          
06 of which shall be maintained by the licensee with the records of the contract, available                                
07 for examination, that the insurer with which the surplus lines broker places the                                        
08 insurance does not hold a certificate of authority issued by this state and is not subject                              
09 to its supervision, and in the event of the insolvency of the surplus lines insurer, losses                             
10 will not be covered under AS 21.80 (Alaska Insurance Guaranty Association Act); or                                     
11   (2)  the surplus lines broker has obtained the affidavit of the                                                      
12 producing broker that the notice required under AS 21.34.080(c) has been given                                          
13 to the insured; a licensee shall maintain a copy of the affidavit with the record of                                    
14 the contract available for examination.                                                                                
15  (b)  Nothing in this section may be construed as nullifying [SHALL                                                
16 NULLIFY] an agreement by an insurer to provide insurance.                                                               
17    * Sec. 54.  AS 21.34.190(a) is amended to read:                                                                      
18  (a)  The fee for filing the statement under AS 21.34.180(b) is an amount equal                                        
19 to one percent on gross premium charged less any return premiums during the                                             
20 preceding calendar year [QUARTER].  The surplus lines broker shall pay the fee at                                     
21 the time of filing of the statement.                                                                                    
22    * Sec. 55.  AS 21.36.120(d) is amended to read:                                                                      
23  (d)  Nothing in this section may be construed as prohibiting the payment of                                           
24 commissions or other compensation to persons duly transacting business under                                         
25 AS 21.27 [LICENSED AGENTS OR SOLICITORS], or as prohibiting an insurer from                                            
26 allowing or returning to its participating policyholders, members, or subscribers, lawful                               
27 dividends, savings, or unabsorbed premium deposits.                                                                     
28    * Sec. 56.  AS 21.36.160 is amended to read:                                                                         
29  Sec. 21.36.160.  RIGHT OF DEBTOR OR BORROWER TO SELECT                                                               
30 INSURANCE PRODUCER [AGENT, BROKER,] AND INSURER.  If property                                                          
31 insurance is required in connection with a debt or loan, the debtor or borrower has the                                 
01 reasonable right to select the insurance producer [AGENT, BROKER,] and insurer                                        
02 through whom the insurance is to be placed if (1) the insurance is provided for the                                     
03 protection of the creditor's or lender's interest in the property at the commencement                                   
04 of the risk; or (2) in the case of renewal of insurance, the renewal policy is delivered                                
05 to the creditor or lender no later than 30 days before the renewal date.                                                
06    * Sec. 57.  AS 21.36.195 is amended to read:                                                                         
07  Sec. 21.36.195.  SURPLUS LINES BROKERS AND INSURANCE                                                                 
08 PRODUCERS; PROHIBITED ACTS.  A surplus lines broker or an insurance                                                   
09 producer may not fail to provide evidence [THE EVIDENCES] of insurance,                                              
10 affidavits, filings, or reports, or fail to maintain the records, or fail to pay the taxes and                          
11 fees, required under AS 21.34.                                                                                          
12    * Sec. 58.  AS 21.36.235(a) is amended to read:                                                                      
13  (a)  Except as provided in AS 21.36.305 [AS 21.36.420], if the renewal                                              
14 premium is increased more than 10 percent for a reason other than an increase in                                        
15 coverage or exposure base, or if after renewal there will be a material restriction or                                  
16 reduction in coverage not specifically requested by the insured, written notice shall be                                
17 mailed to the insured and to the agent or broker of record as required by AS 21.36.260                                  
18   (1)  at least 20 days before expiration of a personal insurance policy;                                              
19 or                                                                                                                      
20   (2)  at least 45 days before expiration of a business or commercial                                                  
21 policy.                                                                                                                 
22    * Sec. 59.  AS 21.36.290 is amended to read:                                                                         
23  Sec. 21.36.290.  POLICY PERIOD.  Except as described in (b) of this                                                  
24 section, a [A] policy with a policy period or term of less than 12 months shall, for the                               
25 purposes of AS 21.36.210 - 21.36.310, be considered to be written for a policy period                                 
26 or term of 12 months except in case of cancellation under any of the circumstances                                      
27 specified in AS 21.36.210, and a policy written for a term longer than one year or a                                    
28 policy with no fixed expiration date shall be considered to be written for successive                                   
29 policy periods or terms of one year and termination by an insurer effective on an                                       
30 anniversary date of the policy shall be considered a failure to renew.                                                  
31    * Sec. 60.  AS 21.36.290 is amended by adding a new subsection to read:                                              
01  (b)  For determining the appropriate rate or premium, a personal automobile                                           
02 insurance policy with a policy period or term of less than six months shall, for the                                    
03 purposes of AS 21.36.210 - 21.36.310, be considered to be written for a policy period                                   
04 or term of six months.                                                                                                  
05    * Sec. 61.  AS 21.36 is amended by adding a new section to read:                                                     
06  Sec. 21.36.305.  PREMIUM INCREASES ON PERSONAL AUTOMOBILE                                                             
07 INSURANCE POLICIES.  (a)  An insurer may not increase the premium on a personal                                         
08 automobile insurance policy unless the increase applies to all insureds of the same                                     
09 class.                                                                                                                  
10  (b)  An insurer may not increase the premium or add a surcharge to a personal                                         
11 automobile insurance policy because of the issuance of a citation for a moving traffic                                  
12 violation unless the insured or another person who resides in the insured's household                                   
13 and is covered by the policy has been convicted of the violation or has entered a plea                                  
14 of no contest to the violation.                                                                                         
15  (c)  The director shall adopt regulations to determine circumstances under                                            
16 which an insurer may increase the premium or add a surcharge to a personal                                              
17 automobile insurance policy.                                                                                            
18  (d)  An insurer that increases the premium or adds a surcharge to a personal                                          
19 automobile insurance policy may only make the increase or surcharge effective on the                                    
20 renewal date of the policy.                                                                                             
21  (e)  An insurer that increases the premium or adds a surcharge to a personal                                          
22 automobile insurance policy shall give written notice of the increase or surcharge at                                   
23 least 20 days before it takes effect, stating the reason for the change and the right of                                
24 appeal under AS 21.39.090.  This subsection does not apply to                                                           
25   (1)  premium increase resulting from a change requested by an insured,                                               
26 if the insured is notified at the time the request is made that the amount of the                                       
27 insured's premium will change as a result of the requested policy change; or                                            
28   (2)  rate approved by the director if the insurer gives written notice of                                            
29 a premium increase to the insured at least 20 days before the renewal date of the                                       
30 affected policy.                                                                                                        
31    * Sec. 62.  AS 21.36.360(i) is amended to read:                                                                      
01  (i)  A criminal insurance act is committed by a person [AN INSURER] doing                                           
02 business in this state or relative to a subject resident, located, or to be performed                                  
03 in this state who knowingly                                                                                            
04   (1)  writes, places, or causes to be written or placed in this state or                                             
05 relative to a subject resident, located, or to be performed in this state a policy,                                    
06 duplicate policy, or contract of insurance of any kind or character, or general or                                      
07 floating policy upon persons or property resident, situated, or located in this state, from                             
08 or through a person not authorized to transact business under AS 21.27 or a risk                                       
09 retention group or purchasing group not registered under AS 21.89.070                                                  
10 [BROKER, AGENT, SURPLUS LINE BROKER, OR PERSON WHO HAS NOT                                                              
11 SECURED A GENERAL AGENT LICENSE IN THIS STATE]; or                                                                      
12   (2)  pays a commission or other form of remuneration to a person, firm,                                            
13 or organization for the writing or placing of insurance coverage in this state or relative                             
14 to a subject resident, located, or to be performed in this state unless that person,                                   
15 firm, or organization is authorized under AS 21.27 to transact [HOLDS A LICENSE                                       
16 ISSUED BY THE DIRECTOR FOR] the kind or class of insurance written or placed,                                        
17 or, in the case of a risk retention group or purchasing group, is registered under                                      
18 AS 21.89.070.                                                                                                          
19    * Sec. 63.  AS 21.36.360(j) is amended to read:                                                                      
20  (j)  A criminal insurance act is committed by a person in this state or relative                                     
21 to a subject resident, located, or to be performed in this state who acts as an                                        
22 insurance producer, managing general agent, third-party administrator,                                               
23 reinsurance intermediary broker, reinsurance intermediary manager, surplus lines                                      
24 broker [SOLICITOR], or independent adjuster without being licensed by the director                                  
25 as required under this title or as a risk retention group or purchasing group                                           
26 without being registered as required under AS 21.89.070.  A criminal insurance act                                     
27 is committed by an insurance producer, managing general agent, third-party                                           
28 administrator, reinsurance intermediary broker, reinsurance intermediary                                              
29 manager, or surplus lines broker [OR SOLICITOR] who solicits or takes application                                      
30 for, procures, or places for others any insurance for which the person is not licensed                                 
31 as required under AS 21.27 or for which the license of the person has been                                             
01 suspended or revoked.  A criminal insurance act is committed by a person in this                                       
02 state or relative to a subject resident, located, or to be performed in this state who                                  
03 acts as or on behalf of a risk retention group or a purchasing group that is not                                        
04 registered under AS 21.89.070  [THIS SUBSECTION DOES NOT APPLY TO A                                                    
05 PERSON DESCRIBED IN AS 21.90.910 OR TO A PERSON SECURING AND                                                            
06 FORWARDING INFORMATION REQUIRED FOR THE PURPOSE OF A GROUP                                                              
07 INSURANCE COVERING THE UNPAID BALANCE OR REMAINING PAYMENTS                                                             
08 PROPOSED TO BE MADE IN CONNECTION WITH THE PURCHASE OF                                                                  
09 MERCHANDISE OR SERVICES IF NO COMMISSION OR OTHER                                                                       
10 COMPENSATION IS PAYABLE ON ACCOUNT OF THE INSURANCE TO THE                                                              
11 PERSON].                                                                                                                
12    * Sec. 64.  AS 21.36.360(k) is amended to read:                                                                      
13  (k)  A criminal insurance act is committed by an insurance producer,                                                 
14 managing general agent, [GENERAL AGENT,] third-party administrator,                                                   
15 reinsurance intermediary broker, reinsurance intermediary manager, or surplus                                         
16 lines broker [OR SOLICITOR] who knowingly compensates or offers to compensate                                          
17 in any manner a person other than an insurance producer, managing [AGENT,]                                            
18 general agent, third-party administrator, reinsurance intermediary broker,                                           
19 reinsurance intermediary manager, or surplus lines broker [OR SOLICITOR]                                               
20 licensed as required under this title in this or another jurisdiction [STATE OR                                     
21 PROVINCE], for procuring or in any manner helping to procure applications for or to                                     
22 place insurance in this state.  A criminal insurance act is committed by a person in                                   
23 this state or relative to a subject resident, located, or to be performed in this state                                 
24 who acts as or on behalf of a risk retention group or a purchasing group that is                                        
25 not registered under AS 21.89.070.  This subsection does not apply to the payment                                      
26 of compensation that is not contingent upon volume of business transacted in the form                                   
27 of salaries to the regular employees of the insurance producer, managing general                                      
28 agent, third-party administrator, reinsurance intermediary [GENERAL AGENT,]                                           
29 broker, reinsurance intermediary manager, or surplus lines broker [OR                                                 
30 SOLICITOR].                                                                                                             
31    * Sec. 65.  AS 21.36.360(n) is amended to read:                                                                      
01  (n)  A criminal insurance act is committed by an agent, managing general                                             
02 agent, third-party administrator, reinsurance intermediary broker, reinsurance                                          
03 intermediary manager, or other representative of an insurer involved in the procuring                                  
04 or issuance of an insurance contract who intentionally fails to report to the insurer the                               
05 exact amount of consideration charged as premium for the contract and to maintain                                       
06 records showing that information.                                                                                       
07    * Sec. 66.  AS 21.36.360(p) is amended to read:                                                                      
08  (p)  A fraudulent insurance act is committed by a person who                                                          
09   (1)  violates a provision of this title or a regulation issued under it;                                          
10   (2)  falsely makes, completes, or alters a certificate of insurance or                                               
11 other document relating to insurance;                                                                                   
12   (3)  knowingly possesses a forged certificate of insurance or other                                                  
13 document relating to insurance; or                                                                                      
14   (4)  knowingly issues a forged certificate of insurance or other                                                     
15 document relating to insurance.                                                                                        
16    * Sec. 67.  AS 21.36.360(q) is amended to read:                                                                      
17  (q)  A fraudulent or criminal insurance act described in                                                              
18   (1)  (b) of this section that is committed to obtain $10,000 or more is                                              
19 a class B felony;                                                                                                       
20   (2)  (c) or (d) of this section is a class B felony;                                                                 
21   (3)  (b) of this section that is committed to obtain $500 or more but less                                           
22 than $10,000 is a class C felony;                                                                                       
23   (4)  (e), (f), (g), or (h), of this section is a class C felony;                                                     
24   (5)  (b) of this section that is committed to obtain less than $500 is a                                             
25 class A misdemeanor;                                                                                                    
26   (6)  (i), (j), (k), (l), (m), or (n) of this section is a class A misdemeanor;                                       
27   (7)  (o) of this section is a class B misdemeanor; [AND]                                                             
28   (8) (p)(1) [(p)] of this section is a class B misdemeanor unless another                                           
29 specific penalty is provided for the violation of the provision; and                                                   
30   (9)  (p)(2) - (4) of this section may be prosecuted under AS 11.46.                                                 
31    * Sec. 68.  AS 21.36.380 is amended to read:                                                                         
01  Sec. 21.36.380.  NOTICE ON CLAIM FORM.  A claim form must contain a                                                   
02 statement that states in substance the following:  "A person who knowingly and with                                     
03 intent to injure, defraud, or deceive an insurance company files a claim containing                                     
04 false, incomplete, or misleading information may be prosecuted under state law [IS                                    
05 GUILTY OF A FELONY]."  A lack of the statement on a claim form does not                                                 
06 constitute a defense to prosecution under this title.                                                                   
07    * Sec. 69.  AS 21.39.040 is amended by adding new subsections to read:                                               
08  (j)  An insurer who has submitted an application for a certificate of authority                                       
09 under AS 21.09.110 and a filing of policy forms under AS 21.42.120 may file a                                           
10 proposed rating system as described in this section.  The director's approval of the                                    
11 rating system is contingent upon the issuance of a certificate of authority under                                       
12 AS 21.09.120.                                                                                                           
13  (k)  The director may adopt regulations detailing the format and content of a                                         
14 rating system filing under this section.                                                                                
15    * Sec. 70.  AS 21.39 is amended by adding a new section to read:                                                     
16  Sec. 21.39.055.  CANCELLATION OF APPROVED FILING.  The voluntary                                                      
17 surrender of a certificate of authority or the failure of the surrendering admitted foreign                             
18 insurer to continue a certificate of authority in force has the effect of cancelling an                                 
19 approval that the insurer may have received under this chapter, unless the approval has                                 
20 been affirmed by the director at the time of the surrender or noncontinuation of the                                    
21 certificate of authority.                                                                                               
22    * Sec. 71.  AS 21.39.155(a) is amended to read:                                                                      
23  (a)  The director may require insurers [CARRIERS], except a reciprocal                                              
24 insurer formed by and insuring only a group of municipalities or nonprofit public                                       
25 utilities under AS 21.75 or a reciprocal insurer formed under AS 21.75 to provide                                       
26 marine insurance, [OR A JOINT INSURANCE ARRANGEMENT FORMED UNDER                                                        
27 AS 21.76,] as a condition of writing a line of insurance dealing with medical                                           
28 malpractice or workers' compensation, to participate in an assigned risk pool if the                                    
29 director finds that mandatory carrier participation is in the public interest.                                          
30    * Sec. 72.  AS 21.42.120 is amended by adding new subsections to read:                                               
31  (f)  This section does not apply to a type of insurance subject to AS 21.57.                                          
01  (g)  An insurer who has submitted an application for a certificate of authority                                       
02 under AS 21.09.110 may file a proposed policy form as described in this section.  The                                   
03 director's approval of the policy form is contingent upon the issuance of a certificate                                 
04 of authority under AS 21.09.120.                                                                                        
05  (h)  The director may adopt regulations detailing the format and content of the                                       
06 filing of a policy form under this section.                                                                             
07    * Sec. 73.  AS 21.42.345 is amended by adding a new subsection to read:                                              
08  (b)  An insurer authorized under AS 21.09 to offer, issue for delivery, deliver,                                      
09 or renew an individual or group disability insurance policy for medical coverage on                                     
10 an expense incurred basis in the state, a hospital or medical service corporation                                       
11 authorized under AS 21.87 to offer or renew an individual or group subscriber's                                         
12 contract for medical coverage in the state, or a health maintenance organization                                        
13 authorized under AS 21.86 to offer an enrollee contract to provide health care services                                 
14 on a prepaid basis shall offer coverage for family members, including newly born                                        
15 children, adopted children, or children placed for adoption and is subject to the                                       
16 conditions in (a) of this section, regardless of the marital status of the covered person.                              
17    * Sec. 74.  AS 21.42.353 is amended to read:                                                                         
18  Sec. 21.42.353.  COVERAGE FOR COSTS OF ACUPUNCTURE                                                                    
19 TREATMENT.  An insurer authorized under AS 21.09 to offer, issue for delivery,                                          
20 deliver, or renew a disability insurance policy in the state, [OR] a hospital or medical                                
21 service corporation authorized under AS 21.87 to offer or renew a subscriber's                                          
22 contract, or a health maintenance organization authorized under AS 21.86 to offer                                      
23 an enrollee contract to provide health care services on a prepaid basis may offer                                      
24 coverage for services of an acupuncturist licensed under AS 08.06 if the policy or                                      
25 contract covers acupuncture treatment by a health care provider who is subject to other                                 
26 provisions of AS 08.                                                                                                    
27    * Sec. 75.  AS 21.42.355 is amended to read:                                                                         
28  Sec. 21.42.355.  COVERAGE FOR COST OF SERVICES PROVIDED BY                                                            
29 NURSE MIDWIVES.  (a)  If an individual or group disability insurance policy,                                            
30 subscriber's contract, enrollee contract, or fraternal benefit society certificate provides                           
31 indemnity for the cost of services of a physician provided to women during pregnancy,                                   
01 childbirth, and the period after childbirth, indemnity in a reasonable amount shall also                                
02 be provided for the cost of an advanced nurse practitioner who provides the same                                        
03 services.  Indemnity may be provided under this subsection only if the advanced nurse                                   
04 practitioner is certified to practice as a nurse midwife in accordance with regulations                                 
05 adopted under AS 08.68.100(a), and the services provided are within the scope of                                        
06 practice authorized by that certification.                                                                              
07  (b)  If an individual or group disability insurance policy, [A] subscriber's                                        
08 contract, enrollee contract, or fraternal benefit society certificate provides for                                    
09 furnishing those services required of a physician in the care of women during                                           
10 pregnancy, childbirth, and the period after childbirth, the contract shall also provide                                 
11 that an advanced nurse practitioner may furnish those same services instead of a                                        
12 physician.  Services may be provided under this subsection only if the advanced nurse                                   
13 practitioner is certified to practice as a nurse midwife in accordance with regulations                                 
14 adopted under AS 08.68.100(a), and the services provided are within the scope of                                        
15 practice authorized by that certification.                                                                              
16    * Sec. 76.  AS 21.42.375(a) is amended to read:                                                                      
17  (a)  An insurer authorized under AS 21.09 to offer, issue for delivery, deliver,                                      
18 or renew an individual or group disability insurance policy for medical coverage on                                     
19 an expense incurred basis in the state, [OR] a hospital or medical service corporation                                  
20 authorized under AS 21.87 to offer or renew a subscriber's contract for medical                                         
21 coverage in the state, or a health maintenance organization authorized under                                           
22 AS 21.86 to offer an enrollee contract to provide health care services on a prepaid                                     
23 basis shall provide coverage for low-dose mammography screening under the schedule                                     
24 described in (b) of this section if the policy or contract covers mastectomies and                                      
25 prosthetic devices and reconstructive surgery incident to mastectomies.                                                 
26    * Sec. 77.  AS 21.42.380 is amended to read:                                                                         
27  Sec. 21.42.380.  COVERAGE FOR TREATMENT OF PHENYLKETONURIA.                                                           
28 (a)  An insurer authorized under AS 21.09 to offer, issue for delivery, deliver, or                                     
29 renew an individual or a group disability insurance policy for major medical coverage                                   
30 on an expense-incurred basis in the state, [OR] a hospital or medical service                                           
31 corporation authorized under AS 21.87 to offer or renew a group contract for major                                      
01 medical coverage in the state, or a health maintenance organization authorized                                         
02 under AS 21.86 to offer an enrollee contract to provide health care services on a                                       
03 prepaid basis shall [MUST] provide coverage for the formulas necessary for the                                         
04 treatment of phenylketonuria. This subsection does not apply to                                                         
05   (1)  a Medicare supplement insurance policy;                                                                         
06   (2)  long-term care insurance;                                                                                       
07   (3)  an insurance policy regulated under 5 U.S.C. 8901 - 8914 or 42                                                  
08 U.S.C. 1395mm;                                                                                                          
09   (4)  an insurance policy that provides services or reimbursement                                                     
10 exclusively for optometric or vision care, dental or orthodontic care, podiatric,                                       
11 ambulance, mental health, or chiropractic care;                                                                         
12   (5)  an insurance policy that the director has, in writing, determined                                               
13 should be excluded from this subsection.                                                                                
14  (b)  The insurer, hospital or medical service corporation, or health                                             
15 maintenance organization providing coverage under this section may impose                                              
16 reasonable contract limitations but may not refuse coverage based on a preexisting                                      
17 condition of phenylketonuria or require that the insured or subscriber pay a higher                                     
18 deductible or copayment for the cost of treating phenylketonuria than for the cost of                                   
19 treating another condition or illness.                                                                                  
20  (c)  In this section,                                                                                               
21   (1)  "copayment" means the portion of the cost to be paid by the                                                     
22 insured, [OR] subscriber, or enrollee in excess of the deductible;                                                  
23   (2)  "cost" means the lowest of the following:                                                                       
24   (A)  the actual charge for the treatment received for                                                               
25 phenylketonuria;                                                                                                        
26   (B)  the usual, customary, and reasonable charge for the                                                            
27 treatment as determined by the contract of coverage; or                                                                 
28   (C)  the charge agreed to by contract between the provider and                                                      
29 the insurer, hospital [SERVICE CORPORATION,] or medical service                                                         
30 corporation, or health maintenance organization;                                                                      
31   (3)  "deductible" means the portion of covered costs that must be                                                    
01 incurred before benefits become payable;                                                                                
02   (4)  "long-term care insurance" has the meaning given in AS 21.53.200;                                               
03   (5)  "major medical coverage" means a disability insurance contract,                                                 
04 [OR] a subscriber contract, or an enrollee contract that provides benefits for hospital                               
05 and medical care with potential lifetime maximum benefits for the insured, [OR]                                       
06 subscriber, or enrollee of at least $10,000.                                                                          
07    * Sec. 78.  AS 21.56.180(c) is amended to read:                                                                      
08  (c)  Except as provided in this subsection, a small employer insurer may not,                                         
09 directly or indirectly, enter into a contract, agreement, or arrangement with an                                       
10 insurance producer [AGENT, BROKER], managing general agent, or third-party                                             
11 administrator that provides for or results in the compensation paid to an insurance                                    
12 producer [AGENT OR BROKER] for the sale of a health benefit plan to be varied                                          
13 because of the health status, claims experience, industry, occupation, or geographic                                    
14 location of the small employer.  This subsection does not apply to a compensation                                       
15 arrangement that provides compensation to an insurance producer [AGENT,                                               
16 BROKER], managing general agent, or third-party administrator on the basis of a                                         
17 percentage of premium, provided that the percentage does not vary because of the                                        
18 health status, claims experience, industry, occupation, or geographic area of the small                                 
19 employer.                                                                                                               
20    * Sec. 79.  AS 21.56.180(d) is amended to read:                                                                      
21  (d)  A small employer insurer                                                                                         
22   (1)  shall provide reasonable compensation, as provided under the plan                                               
23 of operation of the program, to an insurance producer [AGENT, BROKER],                                                
24 managing general agent, or third-party administrator, if any, for the sale of a basic or                                
25 standard health benefit plan;                                                                                           
26   (2)  or insurance producer [AGENT, BROKER], managing general                                                       
27 agent, or third-party administrator may not induce or otherwise encourage a small                                       
28 employer to separate or otherwise exclude an employee from health coverage or                                           
29 benefits provided in connection with the employee's employment;                                                         
30   (3)  may only deny an application for coverage from a small employer                                                 
31 in writing and if the reasons for the denial are stated.                                                                
01    * Sec. 80.  AS 21.57.010 is amended to read:                                                                         
02  Sec. 21.57.010.  PURPOSE.  The purpose of this chapter is to promote the                                              
03 public welfare by regulating consumer credit [LIFE INSURANCE AND CREDIT                                               
04 DISABILITY] insurance.  Nothing in this chapter is intended to prohibit or discourage                                   
05 reasonable competition.  The provisions of this chapter shall be liberally construed.                                   
06    * Sec. 81.  AS 21.57.020 is repealed and reenacted to read:                                                          
07  Sec. 21.57.020.  APPLICABILITY.  Consumer credit insurance transacted in                                              
08 connection with a credit transaction for a personal, household, or family purpose is                                    
09 subject to the provisions of this chapter except                                                                        
10   (1)  insurance written in connection with a credit transaction that is                                               
11   (A)  secured by a first mortgage or first deed of trust; and                                                        
12   (B)  made to finance the purchase of real property, the                                                             
13 construction of a dwelling, or to refinance a prior credit transaction made for                                         
14 that purpose;                                                                                                           
15   (2)  an isolated insurance transaction by the insurer not related to an                                              
16 agreement or a plan for insuring debtors of the creditor;                                                               
17   (3)  insurance for which no identifiable charge is made to the debtor;                                               
18 or                                                                                                                      
19   (4)  a loan or other credit transaction that exceeds $30,000.                                                        
20    * Sec. 82.  AS 21.57.030 is repealed and reenacted to read:                                                          
21  Sec. 21.57.030.  AUTHORIZED TYPES OF CONSUMER CREDIT                                                                  
22 INSURANCE.  A type of consumer credit insurance defined in AS 21.57.160 may be                                          
23 written separately or in combination with other types of consumer credit insurance on                                   
24 an individual or group basis.                                                                                           
25    * Sec. 83.  AS 21.57.040 is repealed and reenacted to read:                                                          
26  Sec. 21.57.040.  AMOUNT OF CONSUMER CREDIT INSURANCE.  (a)  The                                                       
27 amount of coverage for credit life insurance payable at the time of loss                                                
28   (1)  may not exceed the greater of the actual net debt or the scheduled                                              
29 net debt, except insurance on an                                                                                        
30   (A)  agricultural credit transaction commitment, not exceeding                                                      
31 one year in duration, may be written up to the amount of the loan commitment                                            
01 on a nondecreasing or level term plan; and                                                                              
02   (B)  educational credit transaction commitment may be written                                                       
03 for the net outstanding balance plus any unused commitment;                                                             
04   (2)  may not be less than the actual net debt less any payments more                                                 
05 than two months overdue if the coverage is written on the actual outstanding net debt;                                  
06   (3)  may not exceed the following if the coverage is written on the                                                  
07 scheduled outstanding net debt:                                                                                         
08   (A)  the scheduled net debt if the actual net debt is less than or                                                  
09 equal to the scheduled net debt;                                                                                        
10   (B)  the actual net debt if the actual net debt is greater than the                                                 
11 scheduled net debt but less than or equal to the scheduled net debt plus two                                            
12 months of payments; or                                                                                                  
13   (C)  the scheduled net debt plus two months of payments if the                                                      
14 actual net debt is greater than the scheduled net debt plus two months of                                               
15 payments;                                                                                                               
16   (4)  must equal the actual net debt on the date of death if a premium is                                             
17 assessed to the debtor on a monthly basis and is based on the actual net debt; and                                      
18   (5)  may be less than the net debt when the partial coverage is                                                      
19 calculated using one of the following:                                                                                  
20   (A)  the amount of insurance is the lesser of a stated amount and                                                   
21 the amount is determined by (2) of this subsection;                                                                     
22   (B)  the amount of insurance is the lesser of a stated amount and                                                   
23 the amount is determined by (3) of this subsection;                                                                     
24   (C)  the amount of insurance is a constant percentage of the                                                        
25 amount determined by (2) or (3) of this subsection; or                                                                  
26   (D)  in the absence of any preexisting condition exclusion, the                                                     
27 amount of insurance payable in the event of death due to natural causes is                                              
28 limited to the balance as it existed six months before the date of death if                                             
29   (i)  there has been at least one increase in the outstanding                                                       
30 balance during that six-month period, other than an increase due to the                                                 
31 accrual of interest or late charges; and                                                                                
01   (ii)  evidence of individual insurability has not been                                                             
02 required during that six-month period.                                                                                  
03  (b)  The director may provide for other patterns of insurance consistent with                                         
04 (a) of this section by regulation.                                                                                      
05  (c)  The total amount of periodic indemnity payable in the event of disability                                        
06 or unemployment, as defined in the policy, may not exceed the sum of the periodic                                       
07 scheduled unpaid installments of the gross debt.  The amount of a periodic indemnity                                    
08 payment may not exceed the original gross debt divided by the number of periodic                                        
09 installments.                                                                                                           
10  (d)  If credit disability insurance or credit unemployment insurance is written                                       
11 in connection with an open-end consumer credit agreement, the amount of insurance                                       
12 may not exceed the gross debt that would accrue on the amount using the creditor's                                      
13 minimum repayment schedule.  The periodic indemnity need not relate to the creditor's                                   
14 minimum repayment schedule.                                                                                             
15    * Sec. 84.  AS 21.57.050 is repealed and reenacted to read:                                                          
16  Sec. 21.57.050.  DURATION OF COVERAGE.  (a)  The effective date of                                                    
17 coverage for                                                                                                            
18   (1)  consumer credit insurance that is elected by the debtor before or                                               
19 contemporaneous with a credit transaction is the date when the debtor becomes                                           
20 obligated to the creditor, except that when evidence of individual insurability is                                      
21 required and the evidence is furnished more than 30 days after the date when the                                        
22 debtor becomes obligated to the creditor, the effective date may be the date on which                                   
23 the insurance company determines the evidence to be satisfactory;                                                       
24   (2)  insurance coverage that is elected by the debtor on a date                                                      
25 subsequent to the date of the credit transaction is, subject to acceptance by the insurer,                              
26 a date not earlier than the date the election is made by the debtor or later than 30 days                               
27 following the date on which the insurer accepts the risk for coverage; an insurer shall                                 
28 determine if a risk is acceptable by an objective method, including one related to a                                    
29 particular date within a billing or repayment cycle or a calendar month; and                                            
30   (3)  a group policy that provides coverage with respect to a debt existing                                           
31 on the policy effective date, must be on or after the effective date of the group policy.                               
01  (b)  A charge for insurance may not be made to the debtor and retained by the                                         
02 creditor or insurer for a time before commencement of the consumer credit insurance                                     
03 to which the charge is related.                                                                                         
04  (c)  The duration of coverage for consumer credit insurance may not extend                                            
05   (1)  beyond the termination date specified in the policy; the termination                                            
06 date of insurance may precede, coincide with, or follow the scheduled maturity date                                     
07 of the debt to which it relates, subject to any other requirements and restrictions of this                             
08 chapter; and                                                                                                            
09   (2)  more than 15 days beyond the scheduled maturity date of the debt                                                
10 except when extended                                                                                                    
11   (A)  without additional cost to the debtor; or                                                                      
12   (B)  under a written agreement signed by the debtor, in                                                             
13 connection with a variable interest rate credit transaction or a deferral, renewal,                                     
14 refinancing, or consolidation of debt.                                                                                  
15  (d)  If the debt is discharged due to renewal, refinancing, or consolidation                                          
16 before the scheduled termination date of the insurance, insurance in force must be                                      
17 terminated before new insurance may be written in connection with the renewed,                                          
18 refinanced, or consolidated debt.                                                                                       
19  (e)  If insurance coverage terminates before the scheduled termination of the                                         
20 insurance, the insurer shall make an appropriate refund or credit to the debtor.  The                                   
21 refund or credit must consist of the unearned insurance charge paid by the debtor for                                   
22 insurance after the date of the termination, except that a refund is not required of a                                  
23 charge made for insurance if the insurance is terminated by performance of the                                          
24 insurer's obligation with respect to the insurance.                                                                     
25  (f)  An insured debtor may terminate consumer credit insurance at any time by                                         
26 providing advance notice to the insurer.  The individual policy or group certificate may                                
27 require that the notice be in writing or that the debtor surrender the individual policy                                
28 or group certificate, or both.  The debtor's right to terminate coverage may also be                                    
29 subject to the terms of the credit transaction contract.                                                                
30    * Sec. 85.  AS 21.57 is amended by adding a new section to read:                                                     
31  Sec. 21.57.055.  DISCLOSURE TO DEBTORS.  (a)  Before a debtor elects to                                               
01 purchase consumer credit insurance in connection with a credit transaction, the insurer                                 
02 shall disclose the following in writing to the debtor:                                                                  
03   (1)  the purchase of consumer credit insurance is optional and not a                                                 
04 condition of obtaining credit approval;                                                                                 
05   (2)  if more than one kind of consumer credit insurance is being made                                                
06 available to the debtor, whether the debtor can purchase the insurance separately or the                                
07 multiple coverage only as a package;                                                                                    
08   (3)  the conditions of eligibility;                                                                                  
09   (4)  if the debtor has other insurance that covers the risk, the debtor may                                          
10 not want or need credit insurance;                                                                                      
11   (5)  if the creditor requires consumer credit insurance as additional                                                
12 security for a debt, the debtor has the option of furnishing the required amount of                                     
13 insurance through existing policies owned or procured by the debtor or of procuring                                     
14 and furnishing the required insurance through an insurer authorized to transact                                         
15 insurance business in this state;                                                                                       
16   (6)  the effective date of the coverage;                                                                             
17   (7)  the debtor may cancel the coverage within the first 30 days after                                               
18 receiving the individual policy or group certificate and have a premium paid by the                                     
19 debtor refunded or credited; thereafter, the debtor may cancel the policy at any time                                   
20 during the term of the loan and receive a refund of unearned premium;                                                   
21   (8)  a brief description of the coverage, including                                                                  
22   (A)  the amount;                                                                                                    
23   (B)  the term;                                                                                                      
24   (C)  any exceptions, limitations, or exclusions;                                                                    
25   (D)  the insured event;                                                                                             
26   (E)  any waiting or elimination period;                                                                             
27   (F)  any deductible;                                                                                                
28   (G)  any applicable waiver of premium provision;                                                                    
29   (H)  to whom the benefits would be paid; and                                                                        
30   (I)  the premium rate for a coverage or for multiple coverage in                                                    
31 a package;                                                                                                              
01   (9)  if the premium or insurance charge is financed, it is subject to                                                
02 finance charges at the rate applicable to the credit transaction or at another specified                                
03 rate; and                                                                                                               
04   (10)  whether or not the benefits provided are sufficient to pay off the                                             
05 debt in full, including finance charges unearned at the time of the claim.                                              
06  (b)  The disclosure required in (a) of this section shall be provided in the                                          
07 following manner:                                                                                                       
08   (1)  in connection with consumer credit insurance offered                                                            
09 contemporaneously with the extension of credit or offered through direct mail                                           
10 advertisements, the disclosure shall be presented to the consumer in a clear and                                        
11 conspicuous manner; or                                                                                                  
12   (2)  in conjunction with the offer of credit insurance subsequent to the                                             
13 extension of credit by other than direct mail advertisements, the initial disclosure may                                
14 be provided orally as long as written disclosure is provided to the debtor not later than                               
15 10 days after the offer or the date any other written material is provided to the debtor,                               
16 whichever occurs first.                                                                                                 
17  (c)  If the debtor elects to purchase coverage, the delivery of the disclosure                                        
18 required in (b) of this section shall be acknowledged by the debtor at the time of                                      
19 delivery, and the insurer shall maintain the debtor's written acknowledgement for at                                    
20 least five years.                                                                                                       
21    * Sec. 86.  AS 21.57.060 is repealed and reenacted to read:                                                          
22  Sec. 21.57.060.  PROVISIONS OF POLICIES AND CERTIFICATES OF                                                           
23 INSURANCE.  (a)  Consumer credit insurance shall be evidenced by an individual                                          
24 policy or a group certificate of insurance.                                                                             
25  (b)  The individual policy or group certificate must, in addition to other                                            
26 requirements of law, set out                                                                                            
27   (1)  the name and home office address of the insurer;                                                                
28   (2)  the name of the debtor;                                                                                         
29   (3)  the premium to be paid by the debtor disclosed separately for each                                              
30 kind of coverage or for all coverage in a package, except that for open-ended loans,                                    
31 the premium rate and the basis of premium calculation must be specified;                                                
01   (4)  a full description of the coverage including the amount, the term,                                              
02 and any exceptions, limitations, or exclusions;                                                                         
03   (5)  a statement that the benefits shall be paid to the creditor to reduce                                           
04 or extinguish the unpaid debt and that, whenever the amount of insurance benefit                                        
05 exceeds the unpaid debt, the excess is payable to the debtor, a beneficiary other than                                  
06 the creditor named by the debtor, or the debtor's estate;                                                               
07   (6)  an explanation of how refunds are calculated in the event of policy                                             
08 termination; and                                                                                                        
09   (7)  if the benefit is not adequate to completely pay off the debt existing                                          
10 on the date of death or disability, a statement to that effect on the face of the                                       
11 individual policy or group certificate in not smaller than 10 point, bold face type.                                    
12    * Sec. 87.  AS 21.57.070 is repealed and reenacted to read:                                                          
13  Sec. 21.57.070.  REQUIREMENTS FOR EVIDENCE OF INSURANCE.  (a)                                                         
14 Unless the individual policy or group certificate of insurance is delivered to the debtor                               
15 at the time the debt is incurred or when the debtor elects to purchase coverage, a copy                                 
16 of the application for the policy or a notice of proposed insurance, signed by the                                      
17 debtor and setting out (1) the name and home office address of the insurer, (2) the                                     
18 name of the debtor, (3) the premium rate to be paid by the debtor for the insurance,                                    
19 and (4) the amount, term, and a brief description of the coverage provided, shall be                                    
20 delivered to the debtor at the time the debt is incurred or the election to purchase                                    
21 coverage is made.  The copy of the application for or notice of proposed insurance                                      
22 must refer exclusively to insurance coverage and must be separate and apart from the                                    
23 loan, sale, other credit statement of account, instrument, or agreement, unless the                                     
24 information required by this subsection is prominently set out in it.  Upon acceptance                                  
25 of the insurance by the insurer and within 30 days of the date upon which the debt is                                   
26 incurred or the election to purchase coverage is made, the insurer shall deliver the                                    
27 individual policy or group certificate of insurance to the debtor.  The application or                                  
28 notice of proposed insurance must state that upon acceptance by the insurer, the                                        
29 insurance shall become effective as provided in AS 21.57.050(a).                                                        
30  (b)  The application or notice of proposed insurance may be used to fulfill all                                       
31 of the requirements of AS 21.57.055(a) and 21.57.060(b) if it contains all of the                                       
01 information required by those subsections.                                                                              
02  (c)  A debtor has 30 days from the date the debtor receives the individual                                            
03 policy or the group certificate to review the coverage purchased.  At any time within                                   
04 the 30-day period, the debtor may contact the creditor or insurer issuing the policy or                                 
05 certificate and request that the coverage be cancelled.  An individual policy or group                                  
06 certificate may require the request be in writing, that the policy or certificate be                                    
07 returned to the insurer, or both.  If a policy is cancelled, the insurer shall return a full                            
08 refund or credit of all premiums or insurance charges to the debtor within 30 days.                                     
09  (d)  If the named insurer does not accept the risk, the debtor shall receive a                                        
10 policy or certificate of insurance listing the name and home office address of the                                      
11 substituted insurer and the amount of the premium to be charged.  If the amount of                                      
12 premium is less than the amount in the notice of proposed insurance, the insurer shall                                  
13 issue an appropriate refund within 30 days.  If the risk is not accepted by an insurer,                                 
14 a premium paid by the debtor shall be refunded or credited to the debtor within 30                                      
15 days of the date of application.                                                                                        
16  (e)  For the purposes of (a) of this section, an individual policy or group                                           
17 certificate delivered in conjunction with an open-end consumer credit agreement or                                      
18 consumer credit insurance requested by the debtor after the date of the debt is                                         
19 considered to be delivered at the time the debt is incurred or election to purchase                                     
20 coverage is made if the delivery occurs within 30 days of the date the insurance is                                     
21 effective.                                                                                                              
22  (f)  An individual policy or group certificate delivered in conjunction with an                                       
23 open-end consumer credit agreement shall continue from its effective date through the                                   
24 term of the agreement unless the individual policy or group certificate is terminated                                   
25 under its terms at an earlier date.                                                                                     
26    * Sec. 88.  AS 21.57.080 is repealed and reenacted to read:                                                          
27  Sec. 21.57.080.  FILING OF FORMS AND RATES.  (a)  An insurance policy,                                                
28 certificate of insurance, notice of proposed insurance, insurance disclosure notice,                                    
29 insurance advertisement, application for insurance, endorsement, and rider delivered                                    
30 or issued for delivery in this state, and the applicable schedules of premium rates shall                               
31 be filed with the director before being used.                                                                           
01  (b)  A document required to be filed under (a) of this section must be on file                                        
02 for a waiting period of 30 days before it is used or becomes effective, unless the                                      
03 director gives prior written approval.  This period may be extended for an additional                                   
04 30 days if the director gives written notice within the waiting period to the insurer                                   
05 making the filing.  The director shall disapprove a filing if the premium rate charged                                  
06 is not reasonable in relation to benefits or if it contains provisions that are unjust,                                 
07 unfair, inequitable, misleading, deceptive, encourage misrepresentation of the policy,                                  
08 or are contrary to a provision of this title or a regulation adopted under this title.  A                               
09 filing is considered to be approved unless it is disapproved by the director within the                                 
10 waiting period.                                                                                                         
11  (c)  If the director notifies the insurer that a document required to be filed                                        
12 under (a) of this section is disapproved, the insurer may not issue or use any part of                                  
13 the document.  In providing notice of disapproval to the insurer, the director shall                                    
14 specify the reason for disapproval and indicate that the insurer is entitled to a hearing.                              
15  (d)  The director may, at any time after a hearing, withdraw approval of a filing                                     
16 on the grounds specified under (b) of this section.  The director shall provide the                                     
17 insurer at least 20 days' prior written notice of a hearing scheduled by the director, and                              
18 the notice of the hearing must state the reason for the proposed withdrawal.                                            
19  (e)  An insurer may not issue or use a document required to be filed under (a)                                        
20 of this section after the effective date of a withdrawal of approval under (d) of this                                  
21 section.                                                                                                                
22  (f)  If a group policy of consumer credit insurance (1) has been delivered in                                         
23 this state before July 1, 1995, or (2) has been or is delivered in another state before                                 
24 or after July 1, 1995, the insurer shall be required to file only the group certificate and                             
25 notice of proposed insurance delivered or issued for delivery in this state as specified                                
26 in AS 21.57.060(b) and 21.57.070(a).                                                                                    
27  (g)  Consumer credit insurance forms used for insurance described under (f) of                                        
28 this section shall be approved by the director if they conform with the requirements                                    
29 specified in this section and if the schedules of premium rates applicable to the                                       
30 insurance evidenced by the certificate or notice are in accordance with the insurer's                                   
31 schedules of premium rates filed with the director.  An item required to be filed under                                 
01 (a) of this section shall also be filed as specified in this chapter unless the item relates                            
02 to a group policy that is delivered in another state and the director has determined that                               
03 the other state has substantially similar statutes or regulations to this chapter.  Upon                                
04 this determination, the items required to be filed under (a) of this section shall be filed                             
05 for informational purposes.  If the director subsequently determines that the                                           
06 informational filing is not in compliance with the requirements of this chapter, the                                    
07 insurer may not use the insurance policy, form, certificate, notice of proposed                                         
08 insurance, disclosure notice, advertisement, application for insurance, endorsement, or                                 
09 rider.                                                                                                                  
10    * Sec. 89.  AS 21.57.090 is amended to read:                                                                         
11  Sec. 21.57.090.  PREMIUMS AND REFUNDS.  (a)  An insurer may revise its                                                
12 schedules of premium rates from time to time, and file the revised schedules with the                                   
13 director.  An insurer may not issue a consumer credit [LIFE INSURANCE POLICY                                          
14 OR CREDIT DISABILITY] insurance policy for which the premium rate differs from                                        
15 [EXCEEDS] that determined by the schedules of the insurer then approved by [ON                                        
16 FILE WITH] the director.                                                                                                
17  (b)  An [EACH] individual policy or group certificate must provide for a                                           
18 refund in the event of termination of [THAT IF] the insurance [IS TERMINATED]                                          
19 before the scheduled maturity date of the insurance and upon notice to the insurer.                                    
20 The [INDEBTEDNESS, ANY] refund of an amount paid by the debtor for insurance                                           
21 shall be paid or credited promptly to the person entitled to it; provided, however, that                                
22 the director shall prescribe a minimum refund and a [NO] refund that would be less                                    
23 than the minimum need not be made.  A refund formula that an insurer desires to                                      
24 use must provide refunds that are at least as favorable to the debtor as refunds                                        
25 based on the rule of anticipation.  The formula to be used in computing refunds shall                                  
26 be filed with and approved by the director.                                                                             
27  (c)  If a creditor requires a debtor to make a payment for consumer credit                                          
28 [LIFE INSURANCE OR CREDIT DISABILITY] insurance and an individual policy                                                
29 or group certificate of insurance is not issued, the creditor shall immediately give                                    
30 written notice to the debtor and shall promptly make an appropriate credit to the                                       
31 account or issue a refund.                                                                                            
01  (d)  The amount charged to a debtor for consumer credit [LIFE OR CREDIT                                             
02 DISABILITY] insurance may not exceed the premium charged by the insurer, as                                             
03 computed at the time the charge to the debtor is determined.                                                            
04    * Sec. 90.  AS 21.57.090 is amended by adding a new subsection to read:                                              
05  (e)  Nothing in this chapter may be construed to authorize a payment for                                              
06 insurance prohibited under other provisions of law governing credit transactions.                                       
07    * Sec. 91.  AS 21.57.120 is amended to read:                                                                         
08  Sec. 21.57.120.  SELECTION RIGHTS OF INSURED [EXISTING                                                              
09 INSURANCE].  When consumer credit [LIFE INSURANCE OR CREDIT                                                           
10 DISABILITY] insurance is required as additional security for a debt [AN                                               
11 INDEBTEDNESS], the debtor shall, upon request to the creditor, have the option of                                       
12 furnishing the required amount of insurance through existing policies of insurance                                      
13 owned or controlled by the debtor or of procuring and furnishing the required coverage                                  
14 through an insurer authorized to transact an insurance business in this state.                                          
15    * Sec. 92.  AS 21.57 is amended by adding a new section to read:                                                     
16  Sec. 21.57.125.  DUTIES OF AN INSURER.  Except as otherwise prohibited                                                
17 by law, duties imposed upon an insurer by this chapter may be carried out by a                                          
18 creditor if the creditor is licensed under AS 21.27 as an insurance producer, a                                         
19 managing general agent, or a third-party administrator, and transacts business within                                   
20 the scope of its license on behalf of the insurer.                                                                      
21    * Sec. 93.  AS 21.57.150 is repealed and reenacted to read:                                                          
22  Sec. 21.57.150.  PENALTIES.  (a) In addition to any other penalty provided                                            
23 by law, a person licensed under AS 21.27 that the director determines under                                             
24 AS 21.06.170 - 21.06.240 has violated the provisions of this chapter is subject to                                      
25   (1)  a civil penalty equal to the compensation promised, paid, or to be                                              
26 paid, directly or indirectly, to the licensee in regard to a violation;                                                 
27   (2)  either a civil penalty of not more than $10,000 for a violation or,                                             
28 if the director determines that the person wilfully violated the provisions of this                                     
29 chapter, a civil penalty of not more than $25,000 for a violation; and                                                  
30   (3)  denial, nonrenewal, suspension, or revocation of a license.                                                     
31  (b)  In addition to any other penalty provided by law, an insurer that the                                            
01 director determines under AS 21.06.170 - 21.06.240 has violated the provisions of this                                  
02 chapter is subject to                                                                                                   
03    (1)  a civil penalty equal to the premium earned, directly or indirectly,                                           
04 by the insurer in regard to a violation;                                                                                
05   (2)  either a civil penalty of not more than $10,000 for a violation or,                                             
06 if the director determines that the insurer wilfully violated the provisions of this                                    
07 chapter, a civil penalty of not more than $25,000 for a violation; and                                                  
08   (3)  denial, suspension, or revocation of a certificate of authority.                                                
09  (c)  In addition to any other penalty provided by law, any person that the                                            
10 director determines under AS 21.06.170 - 21.06.240 has violated the provisions of this                                  
11 chapter is subject to                                                                                                   
12   (1)  either a civil penalty of not more than $10,000 for a violation or,                                             
13 if the director determines that the person wilfully violated the provisions of this                                     
14 chapter, a civil penalty of not more than $25,000 for a violation; and                                                  
15   (2)  denial of a license.                                                                                            
16    * Sec. 94.  AS 21.57.160 is repealed and reenacted to read:                                                          
17  Sec. 21.57.160.  DEFINITIONS.  In this chapter,                                                                       
18   (1)  "agriculture credit transaction commitment" means a binding                                                     
19 agreement to loan money up to a fixed amount as needed for agricultural purposes;                                       
20   (2)  "compensation" means commissions, dividends, retrospective rate                                                 
21 credits, service fees, expense allowances or reimbursements, gifts, furnishing                                          
22 equipment, facilities, goods, or services, or any other form of remuneration resulting                                  
23 directly from the sale of consumer credit insurance;                                                                    
24   (3)  "consumer credit insurance" means credit life insurance, credit                                                 
25 disability insurance, or credit unemployment insurance;                                                                 
26   (4)  "credit disability insurance" means insurance on a debtor to provide                                            
27 indemnity for payments or debt becoming due on a specific loan or other credit                                          
28 transaction while the debtor is disabled;                                                                               
29   (5)  "credit life insurance" means insurance on the life of a debtor under                                           
30 or in connection with all or a part of a specific loan or other credit transaction;                                     
31   (6)  "credit unemployment insurance" means insurance on a debtor to                                                  
01 provide indemnity for payments or debt becoming due on a specific loan or other                                         
02 credit transaction while the debtor is involuntarily unemployed;                                                        
03   (7)  "credit transaction" means a transaction by which the repayment for                                             
04 money loaned or a loan commitment made or payment for goods, services, or                                               
05 properties sold or leased is made at a future date;                                                                     
06   (8)  "creditor" means a person who lends money or who sells or leases                                                
07 goods, services, property, rights, or privileges, for which payment is arranged through                                 
08 a credit transaction, and includes a person who is a successor to the right, title, or                                  
09 interest of the lender, seller, or lessor;                                                                              
10   (9)  "debtor" means a person who borrows money, or purchases or                                                      
11 leases goods, services, property, rights, or privileges for which payment is arranged                                   
12 through a credit transaction;                                                                                           
13   (10)  "educational credit transaction commitment" means a binding                                                    
14 agreement to loan money up to a fixed amount as needed for educational purposes;                                        
15   (11)  "gross debt" means the total of the remaining payments owed to                                                 
16 the creditor by the debtor;                                                                                             
17   (12)  "identifiable charge" means a charge for consumer credit insurance                                             
18 that is made to a debtor having the benefit of the insurance, including a charge for                                    
19 insurance that is disclosed in the consumer credit agreement or other instrument                                        
20 furnished to the debtor, and any difference in the finance, interest, service, or other                                 
21 similar charge made to a debtor in a like circumstance, except for their insured or                                     
22 noninsured status;                                                                                                      
23   (13)  "net debt" means the amount necessary to liquidate the remaining                                               
24 debt in a single lump sum payment, excluding all unearned finance charges;                                              
25   (14)  "open-end consumer credit" means consumer credit extended by                                                   
26 a creditor under an agreement in which                                                                                  
27   (A)  the creditor reasonably contemplates repeated transactions;                                                    
28   (B)  the creditor imposes a periodic finance charge on an                                                           
29 outstanding unpaid balance; and                                                                                         
30   (C)  the amount of consumer credit that may be extended to the                                                      
31 debtor during the term of the agreement, up to any limit set by the creditor, is                                        
01 generally made available to the extent that any outstanding balance is repaid;                                          
02   (15)  "rule of anticipation" means a refund method that results in                                                   
03 refunds equal to the premium cost of scheduled benefits subsequent to the date of                                       
04 cancellation or termination, computed at the schedule of premium rates in effect on the                                 
05 date of issue.                                                                                                          
06    * Sec. 95.  AS 21.69 is amended by adding new sections to read:                                                      
07  Sec. 21.69.645.  REDOMESTICATION.  (a)  An insurer organized under the                                                
08 laws of another state and admitted to do business in this state may become a domestic                                   
09 insurer of this state by complying with the requirements of this title relative to the                                  
10 organization and licensing of a domestic insurer and by designating its principal place                                 
11 of business at a place in this state.                                                                                   
12  (b)  A domestic insurer may, upon approval of the director, transfer its domicile                                     
13 to another state in which it is admitted to transact the business of insurance.  Upon a                                 
14 transfer as described in this subsection, the insurer shall cease to be a domestic insurer                              
15 of this state, but shall be considered admitted to this state.  The insurer shall meet the                              
16 qualifications to remain admitted to this state for a period of three years or, if ordered                              
17 by the director, a longer period.  The director may approve a proposed transfer unless                                  
18 the transfer is not in the interest of the policyholders of the insurer or the insurance                                
19 marketplace of this state.                                                                                              
20  (c)  Upon transfer of domestic status to or from this state, the certificate of                                       
21 authority, appointments under AS 21.27.100, rates, and other items that the director                                    
22 allows, and that are in existence at the time the insurer is licensed to transact the                                   
23 business of insurance in this state, shall continue in full force and effect and the                                    
24 insurer shall remain duly qualified to transact the business of insurance in this state.                                
25 Outstanding policies of a transferring insurer shall remain in full force and effect and                                
26 shall be endorsed with the new name of the company, its new location, and any other                                     
27 information the director may require.  A transferring insurer shall notify the director                                 
28 of the details of the proposed transfer 30 days before the effective date of the transfer                               
29 and shall promptly file any resulting amendments to corporate documents filed or                                        
30 required to be filed with the director.                                                                                 
31  (d)  A transfer of domestic status by merger, consolidation, or any other lawful                                      
01 method of combination must meet the requirements of AS 21.69.590 or 21.69.600.                                          
02 The certificate of authority, appointments under AS 21.27.100, rates, and other items                                   
03 that the director allows, and that are in existence at the time the insurer is licensed to                              
04 transact the business of insurance in this state, shall continue in full force and effect                               
05 and the insurer shall remain duly qualified to transact the business of insurance in this                               
06 state.  Outstanding policies of a domestic insurer being merged, consolidated, or                                       
07 otherwise combined shall remain in full force and effect and shall be endorsed with                                     
08 the new name of the company, its new location, and any other information the director                                   
09 may require.                                                                                                            
10  (e)  An insurer that is transferring its domicile to this state shall file its revised                                
11 policy forms for approval under AS 21.42.                                                                               
12  (f)  A domestic insurer that is transferring its domicile to another state is not                                     
13 required to file policy forms at the time of transfer if the forms have already been                                    
14 approved under AS 21.42.                                                                                                
15  Sec. 21.69.648.  VOLUNTARY SURRENDER OF CERTIFICATE OF                                                                
16 AUTHORITY.  To voluntarily surrender the certificate of authority of a domestic                                         
17 insurer, a request shall be made to the director to extinguish the certificate of authority                             
18 six months before the planned effective date of the extinguishment of the charter.                                      
19 Before the request is granted, the director shall conduct an examination under                                          
20 AS 21.06.120.  The examination shall be completed within 12 months before the                                           
21 effective date of an extinguishment and all issues contained in the examination report                                  
22 must be resolved to the satisfaction of the director.  Insurance business of the domestic                               
23 insurer shall be cancelled or reinsured as required under AS 21.69.610 or 21.69.620.                                    
24    * Sec. 96.  AS 21.72 is amended by adding a new section to read:                                                     
25  Sec. 21.72.125.  QUARTERLY STATEMENTS.  The director may require a                                                    
26 benevolent association to file quarterly financial statements as provided in                                            
27 AS 21.09.205.  The statements must exhibit the items and facts required under                                           
28 AS 21.72.120(a).                                                                                                        
29    * Sec. 97.  AS 21.75 is amended by adding a new section to read:                                                     
30  Sec. 21.75.135.  QUARTERLY STATEMENTS.  (a)  The director may require                                                 
31 a reciprocal insurer's attorney-in-fact to file a quarterly financial statement as provided                             
01 in AS 21.09.205.                                                                                                        
02  (b)  A statement required under (a) of this section shall be supplemented by                                          
03 information that may be required by the director relative to the affairs and transactions                               
04 of the attorney-in-fact that relate to the reciprocal insurer.                                                          
05    * Sec. 98.  AS 21.75.170(e) is amended to read:                                                                      
06  (e)  Special meetings of the committee may be called by the attorney-in-fact,                                         
07 the chair of the committee, three members of the committee, or a signed petition of                                     
08 at least one percent of the subscribers or three individual subscribers, whichever is                                  
09 greater, as of the most recent annual report of the reciprocal insurer.                                                
10    * Sec. 99.  AS 21.75.170 is amended by adding a new subsection to read:                                              
11  (g)  Notwithstanding (a) of this section, a domestic reciprocal insurer                                               
12 transacting all of its insurance activities on a subject resident, located, and to be                                   
13 performed in this state may, with the prior written approval of the director, have a                                    
14 subscriber's advisory committee that consists of not less than five individuals who are                                 
15 elected by the subscribers, and who otherwise meet the requirements of (a) of this                                      
16 section.                                                                                                                
17    * Sec. 100.  AS 21.78.130(g) is amended to read:                                                                     
18  (g)  If it appears to the receiver that there has been a violation of civil or                                        
19 criminal law, or breach of a contractual or fiduciary obligation detrimental to the                                     
20 insurer by an officer, manager, insurance producer [AGENT, BROKER], employee,                                         
21 or other person, the receiver may pursue all appropriate legal remedies on behalf of                                    
22 the insurer.                                                                                                            
23    * Sec. 101.  AS 21.78.271(a) is amended to read:                                                                     
24  (a)  An                                                                                                               
25   (1)  insurance producer [AGENT, BROKER], premium finance                                                           
26 company, or any other person, other than the insured, responsible for the payment of                                    
27 a premium is obligated to pay an unpaid earned premium due the insurer at the time                                      
28 of the declaration of insolvency, as shown on the records of the insurer; neither a                                     
29 credit nor a setoff is allowed to an insurance producer [AGENT, BROKER,] or                                           
30 premium finance company for an amount advanced to the insurer by the insurance                                         
31 producer [AGENT, BROKER,] or premium finance company on behalf of, but in the                                          
01 absence of a payment by, the insured;                                                                                   
02   (2)  insured is obligated to pay an unpaid earned premium due the                                                    
03 insurer at the time of the declaration of insolvency, as shown on the records of the                                    
04 insurer.                                                                                                                
05    * Sec. 102.  AS 21.79.900(6) is amended to read:                                                                     
06   (6)  "member insurer" means an insurer licensed to transact insurance                                                
07 in the state that issues a policy described in AS 21.79.020(a) and (b), or a subscriber                                 
08 contract providing benefits described in AS 21.87.120(a)(2) - (4) or 21.87.130(a)(2)                                    
09 and (3), and includes an insurer whose license or certificate of authority in this state                                
10 may have been suspended, revoked, not renewed, or voluntarily withdrawn; "member                                        
11 insurer" does not include                                                                                               
12   (A)  a health maintenance organization licensed under                                                              
13 AS 21.86;                                                                                                              
14   (B)  a fraternal benefit society licensed under AS 21.84;                                                         
15   (C)  a mandatory state pooling plan;                                                                                
16   (D)  a mutual assessment company or an entity that operates on                                                      
17 an assessment basis;                                                                                                    
18   (E)  an insurance exchange licensed under AS 21.75; or                                                            
19   (F)  a nonprofit hospital or medical service organization                                                        
20 licensed under AS 21.87;                                                                                               
21    * Sec. 103.  AS 21.80.020 is amended by adding a new subsection to read:                                             
22  (b)  This chapter does not apply to a risk retention group formed under 15                                            
23 U.S.C. 3901 - 3906 (Liability Risk Retention Act).                                                                      
24    * Sec. 104.  AS 21.84.340 is amended by adding a new subsection to read:                                             
25  (d)  The director may require a society to file quarterly financial statements.                                       
26 If quarterly financial statements are required, the statements must follow for a given                                  
27 quarter the reporting specified in the quarterly financial statement blank form and                                     
28 instructions most recently approved by the National Association of Insurance                                            
29 Commissioners.                                                                                                          
30    * Sec. 105.  AS 21.86.080 is amended by adding new subsections to read:                                              
31  (b)  The director may require a health maintenance organization to file quarterly                                     
01 financial statements.  If quarterly financial statements are required, the statements must                              
02 follow for a given quarter the reporting specified in the quarterly financial statement                                 
03 blank form and instructions most recently approved by the National Association of                                       
04 Insurance Commissioners.                                                                                                
05  (c)  A filing under this section is subject to AS 21.09.200 and 21.09.205.                                            
06    * Sec. 106.  AS 21.89.030 is amended to read:                                                                        
07  Sec. 21.89.030.  PAYMENT.  An insurance company doing business in this                                                
08 state may not pay a judgment or settlement of a claim in this state for a loss incurred                                 
09 in this state with an instrument other than a negotiable bank check payable on demand                                   
10 and bearing even date with the date of writing or by electronic funds transfer.                                       
11    * Sec. 107.  AS 21.89 is amended by adding new sections to read:                                                     
12  Sec. 21.89.080.  ELECTRONIC DATA TRANSFER.  The director may adopt                                                    
13 regulations to facilitate electronic data transfer.  Electronic data transferred under                                  
14 regulations may, at the discretion of the director, be in place of another method of                                    
15 filing or communication otherwise required under this title.                                                            
16  Sec. 21.89.090.  RISK RETENTION GROUPS AND PURCHASING GROUPS.                                                         
17 (a)  A risk retention group or a purchasing group formed under and in compliance with                                   
18 15 U.S.C. 3901 - 3906 (Liability Risk Retention Act) shall register with the director                                   
19 and shall at all times transact business in compliance with federal law and with the                                    
20 laws of this state that are not preempted by federal law.                                                               
21  (b)  A risk retention group or a purchasing group shall apply for initial                                             
22 registration on forms prescribed by the director.  Payment of a registration fee                                        
23 established under AS 21.06.250 shall be submitted with the application.                                                 
24  (c)  A risk retention group or a purchasing group may continue its registration                                       
25 if it is in compliance with federal law.  Payment of an annual continuation fee                                         
26 established under AS 21.06.250 shall be submitted with the continuation application.                                    
27  (d)  A risk retention group holding a valid certificate of authority as a domestic                                    
28 insurer or a purchasing group duly licensed under AS 21.27 as a resident license is not                                 
29 required to be additionally registered under this section.                                                              
30  (e)  In addition to any other penalty provided by law, a person that the director                                     
31 determines under AS 21.06.170 - 21.06.240 has violated a provision of this title                                        
01 relative to a risk retention group or a purchasing group is subject to a civil penalty of                               
02 not more than $10,000 for a violation or, if the director determines that the person                                    
03 wilfully violated a provision of this title, a civil penalty of not more than $25,000 for                               
04 a violation.                                                                                                            
05  (f)  The director may adopt regulations on the operation and reporting                                                
06 requirements of a risk retention group that are not in conflict with 15 U.S.C. 3901 -                                   
07 3906 (Liability Risk Retention Act).                                                                                    
08    * Sec. 108.  AS 21.90.900(26) is amended to read:                                                                    
09   (26)  "managing general agent" means a person, firm, or corporation that                                             
10   (A)  has authority to exercise general supervision over the                                                         
11 business, or any part of the business, of one or more admitted insurers; and                                            
12   (B)  performs administrative functions normally performed by                                                        
13 the insurer including claims administration and payment, marketing                                                      
14 administration, agent appointment, premium accounting, premium billing,                                                 
15 coverage verification, final underwriting authority, or [AND] certificate                                             
16 issuance;                                                                                                               
17    * Sec. 109.  AS 21.90.900(28) is amended to read:                                                                    
18   (28)  "person" has the meaning given in AS 01.10.060 and includes an                                                 
19 insurer, Lloyd's, fraternal benefit society, medical service, or hospital service plan as                             
20 defined in AS 21.87, reciprocal or interinsurance exchange, syndicate, and any other                                    
21 legal entity engaged in the business of transacting insurance [, INCLUDING AGENTS,                                      
22 BROKERS, AND CLAIMS ADJUSTERS];                                                                                         
23    * Sec. 110.  AS 28.20.580 is amended to read:                                                                        
24  Sec. 28.20.580.  ASSIGNED RISK PLANS.  After consultation with the                                                    
25 insurance companies authorized to issue motor vehicle liability policies in this state,                                 
26 the director of the division of insurance shall approve a reasonable plan, fair to the                                  
27 insurers and equitable to their policyholders, for the apportionment among these                                        
28 companies of applicants for motor vehicle policies and other vehicle coverages who                                      
29 are in good faith entitled to but are unable to procure policies through ordinary                                       
30 methods.  When a plan is approved, all the insurance companies shall subscribe to it                                    
31 and participate in it, except a reciprocal insurer formed by and only insuring a                                       
01 group of municipalities or nonprofit utilities under AS 21.75, or a reciprocal                                          
02 insurer formed under AS 21.75 to provide marine insurance.  An applicant for an                                        
03 assigned risk policy, a person insured under an assigned risk plan, and an insurance                                    
04 company affected may appeal to the commissioner of commerce and economic                                                
05 development from a ruling or decision of the authority designated to operate the plan.                                  
06 Failure to adopt an assigned risk plan does not relieve any person from responsibility                                  
07 under this chapter.                                                                                                     
08    * Sec. 111.  AS 39.25.110 is amended by adding a new paragraph to read:                                              
09   (30)  a person employed as an actuary or assistant actuary by the                                                    
10 division of insurance in the Department of Commerce and Economic Development.                                           
11    * Sec. 112.  AS 21.18.110(b)(3); AS 21.27.650(f)(3); and AS 21.36.420 are repealed.                                  
12    * Sec. 113.  AS 21.57.110 and 21.57.170 are repealed.                                                                
13    * Sec. 114.  AS 21.09.300(c), enacted in sec. 16 of this Act, has the effect of amending                             
14 Alaska Rule of Civil Procedure 45, by providing that certain insurer reports of material                                
15 transactions are not subject to subpoena.                                                                               
16    * Sec. 115.  TRANSITION.  This Act applies to a policy of insurance that is entered into                             
17 or renewed on or after the effective date of the relevant provision of this Act.                                        
18    * Sec. 116.  Sections 71 and 110 of this Act are retroactive to January 1, 1983.                                     
19    * Sec. 117.  Sections 80 - 94 and 113 of this Act take effect October 1, 1995.                                       
20    * Sec. 118.  Except as provided in secs. 116 and 117 of this Act, this Act takes effect                              
21 July 1, 1995.