2017 Alaska Statutes
Title 21. Insurance
Chapter 22. Insurance Holding Companies
Sec. 21.23.030. Own risk and solvency assessment summary report.

(a) If requested by the director, an insurer shall submit an own risk and solvency assessment summary report or any combination of reports that together contain the information described in the own risk and solvency assessment guidance manual that is applicable to the insurer or the insurance group of which the insurer is a member. The director may not request more than one report a year. The insurer shall submit the report to the director within 30 days after the request, unless the insurer requests an extension in writing and the director grants the request. If an insurer is a member of an insurance group, the insurer shall submit the report required by this subsection at least annually if the director is the lead state regulator of the insurance group as determined by the procedures in the Financial Analysis Handbook adopted by the National Association of Insurance Commissioners.

(b) For a report submitted under this section, an insurer's or insurance group's chief risk officer or other executive having responsibility for the oversight of the insurer's enterprise risk management process shall sign the report and attest, to the best of the officer's or executive's belief and knowledge, that the insurer applies the enterprise risk management process described in the report and that a copy of the report has been provided to the insurer's board of directors or the appropriate committee of the board.

(c) An insurer may comply with (a) of this section by providing the most recent and substantially similar report or reports provided by the insurer or another member of the insurance group of which the insurer is a member to the insurance regulator of another state or a foreign jurisdiction, if that report provides information that is comparable to the information described in the own risk and solvency assessment guidance manual. A report in a language other than English must be accompanied by a translation of that report into the English language.

(a) The director shall approve a merger or other acquisition of control referred to in AS 21.22.010 unless, after a public hearing, the director finds that

(1) after the change of control, the domestic insurer referred to in AS 21.22.010 would not be able to satisfy the requirements for the issuance of a license to write the line or lines of insurance for which it is presently licensed;

(2) the effect of the merger or other acquisitions of control would be substantially to lessen competition in insurance in this state or tend to create a monopoly in this state;

(3) the financial condition of an acquiring party is such that it might jeopardize the financial stability of the insurer or prejudice the interest of its policyholders or the interests of any remaining securityholders who are unaffiliated with the acquiring party;

(4) the terms of the offer, request, invitation, agreement, or acquisition referred to in AS 21.22.010 are unfair and unreasonable to the securityholders of the insurer;

(5) the plans or proposals that the acquiring party has to liquidate the insurer, sell its assets, or consolidate or merge it with any person, or to make any other material change in its business or corporate structure or management, are unfair and unreasonable to policyholders of the insurer and not in the public interest;

(6) the competence, experience, and integrity of those persons who would control the operation of the insurer are such that it would not be in the interest of policyholders of the insurer and of the public to permit the merger or other acquisition of control; or

(7) the acquisition is likely to be hazardous or prejudicial to the insurance-buying public.

(b) The public hearing referred to in (a) of this section must be held within 60 days after the statement required by AS 21.22.010 is filed and determined to be complete by the director. The director shall give notice of at least 20 days of the hearing to the person filing the statement. The person filing the statement shall give notice of at least seven days of the hearing to the insurer and to other persons as may be designated by the director. The director shall issue a decision within the 60-day period preceding the effective date of the proposed transaction. The procedure in AS 21.06.210 applies to a public hearing under this section.

(c) In evaluating the effect of a merger or other acquisition under (a)(2) of this section, the

(1) information requirements of AS 21.22.065(c)(1) and the standards of AS 21.22.065(d)(1), (2), and (e) apply;

(2) merger or other acquisition may not be disapproved if the director finds that a situation meeting the criteria in AS 21.22.065(g) exists; and

(3) director may condition the approval of the merger or other acquisition on the removal of a basis for disapproval within a specified period.

(d) The director may retain at the acquiring person's expense an attorney, actuary, accountant, or other expert not otherwise a part of the director's staff, if reasonably necessary to assist the director in reviewing the proposed acquisition of control.

(e) If the proposed acquisition of control would require the approval of more than one insurance regulator, the public hearing referred to under (a) and (b) of this section may be held on a consolidated basis upon request of the person filing the statement referred to in AS 21.22.010. That person shall file the statement referred to in AS 21.22.010 with the National Association of Insurance Commissioners within five days after making the request for a public hearing. The director may opt out of a consolidated hearing and shall provide notice to the applicant of the opt-out within 10 days after receipt of the statement referred to in AS 21.22.010. A hearing conducted on a consolidated basis must be public and must be held within the United States before the insurance regulators of the states in which the insurers are domiciled. The director may attend the hearing in person or telephonically.