1996 Alaska Statutes
TITLE 21 INSURANCE
Chapter 21.79. ALASKA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT
Sec. 21.79.100. Prevention of insolvencies.

(a) The director shall notify, by mail, the commissioner, director, or superintendent of insurance of the other states, territories of the United States, and the District of Columbia, within 30 days after the date on which the following actions are taken against a member insurer:

(1) revocation of a license;

(2) suspension of a license; or

(3) a formal order that a member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of policyholders or creditors.

(b) The director shall report to the board if an action set out in (a) of this section is taken or a report is received from a state insurance regulator that similar action has been taken in another state. The report to the board must contain all significant details of the action taken or the report received from another insurance regulator.

(c) The director shall report to the board if there is reasonable cause to believe, during or after an examination of a member insurer, that the company may be impaired or insolvent.

(d) The director shall furnish the board with the NAIC Insurance Regulatory Information System (IRIS) ratios and a listing of companies not included in the ratios developed by the NAIC, and the board may use that information to carry out its duties and responsibilities under this section. The information shall be kept confidential by the board until it is made public by the director.

(e) The director may seek the board's advice and recommendations concerning the financial condition of member insurers and insurers who apply for admission to transact insurance business in the state.

(f) The board shall

(1) make reports and recommendations to the director relating to the solvency, liquidation, rehabilitation, or conservation of a member insurer or the solvency of insurers who apply to transact insurance business in the state; the director and the board shall keep the reports and recommendations confidential;

(2) notify the director of any information that indicates that a member insurer may be impaired or insolvent.

(g) The board may request the director to examine a member insurer that the board believes may be an impaired or insolvent insurer. Within 30 days after receipt of the request, the director shall begin the examination. The examination may be conducted as a NAIC examination or may be conducted by persons the director designates. The cost of examination shall be paid by the association, and the examination report shall be treated in the same manner as other examination reports under AS 21.06. The completed examination report may not be released to the board before it is released to the public, but this does not preclude the director from complying with (c) of this section. The director shall notify the board when the examination is completed. The request for an examination shall be kept on file by the director and may not be released to the public before the release of the examination report to the public.

(h) The board may make recommendations to the director for detecting and preventing insurer insolvencies.

(i) The board shall, at the conclusion of an insurer insolvency in which the association was required to pay covered claims, prepare a report to the director that sets out information concerning the history and cause of the insolvency. The board shall cooperate with the boards of guaranty associations in other states in preparing a report on the history and causes of insolvency of an insurer, and may adopt by reference a report prepared by other associations.