Section 3.21.870. Requirements for deposits with affiliates.

	(a)  An insurer may deposit securities with an affiliated insurer if the securities are deposited in accordance with a written agreement authorized by the board of directors of the depositing insurer, or by an authorized committee of the board of directors of the depositing insurer, and if the affiliated insurer is organized under the laws of a state of the United States. If the states of domicile of the depositing insurer and the affiliated insurer are different, the depositing insurer shall give notice of the proposed deposit 30 days before the effective date of the deposit to the insurance regulatory official in the domiciliary state of the depositing insurer. If within 30 days after the receipt of the notice the insurance regulatory official objects to the deposit, the depositing insurer may not make the proposed deposit.  
	(b)  The written agreement between the depositing insurer and the affiliated insurer must require the affiliated insurer receiving the deposit to  
		(1) maintain records adequate to identify and verify the securities belonging to the depositing insurer; and  
		(2) allow representatives of an appropriate regulatory body to examine records relating to securities held under the agreement.  
	(c)  If the authorization is included in the written agreement with the affiliated insurer, the depositing insurer may authorize the affiliated insurer to  
		(1) hold the securities of the depositing insurer in bulk, in certificates issued in the name of the affiliated insurer or its nominee, and to commingle them with securities owned by other affiliates of the affiliated insurer receiving the deposit; and  
		(2) provide for the securities to be held by a custodian, including the custodian of securities of the affiliated insurer, or in a clearing corporation.   

Authorities

21.06.090;21.21.410

Notes

Authority

AS 21.06.090 AS 21.21.410

History

Eff. 8/31/2008, Register 187