AI-assisted research summary: This chapter limits insurer investments to eligible investments, sets custody and recordkeeping rules, and requires the director to adopt consistent investment regulations.
Chapter 21. Investments. Sec. 21.21.010. Scope. This chapter applies only to an investment and investment practice of a domestic insurer and a United States branch of an alien insurer entered through this state. This chapter does not apply to separate accounts of a life insurer. Sec. 21.21.020. Eligible investments. (a) Insurers shall invest in or lend their funds on the security of, and shall hold as invested assets, only the eligible investments prescribed in this chapter. (b) [Repealed, § 85 ch 50 SLA 1990.] (c) Eligibility of an investment shall be determined as of the date of its making or acquisition. (d) An investment limitation based upon the amount of the insurer's assets or particular funds shall relate to the assets or funds shown by the insurer's annual statement most recently required to be filed with the director. (e) For purposes of determining compliance with investment limitations imposed under this chapter, the director or an insurer shall use admitted asset values. Secs. 21.21.030 21.21.250. [Repealed, § 84 ch 81 SLA 2001.] Sec. 21.21.255. Regulation of securities held by insurers. As provided under 15 U.S.C. 77r-1(b) and (c) (Secondary Mortgage Market Enhancement Act of 1984), securities that are purchased, held, or invested in by an insurer are subject to AS 21.18.170 and regulations adopted under AS 21.21.420 , and other applicable provisions of this title. Secs. 21.21.260 21.21.310. [Repealed, § 84 ch 81 SLA 2001.] Sec. 21.21.320. [Repealed, § 3 ch 69 SLA 1980.] Secs. 21.21.321 21.21.400. [Repealed, § 84 ch 81 SLA 2001.] Sec. 21.21.410. Custodian of insurer assets. (a) The custodian for assets, securities, or investments of the insurer may be only a bank, trust company, securities firm, or clearing corporation that is properly authorized by the insurer and approved by the director. (b) When securities are deposited with a clearing corporation, certificates representing securities of the same class of the same issuer may be merged and held in bulk in the name of the nominee of the clearing corporation with any other securities deposited with the clearing corporation by any person, regardless of the ownership of the securities, and certificates representing securities of small denominations may be merged into one or more certificates of larger denominations. The records of any custodian through which an insurer holds securities in a clearing corporation must show that the securities are held for the insurer and for which accounts of the insurer. Ownership of, and other interest in, the securities may be transferred by bookkeeping entry on the books of the clearing corporation without physical delivery of certificates representing the securities. (c) A custodial agreement between an insurer and an institution holding the assets, securities, or investments of the insurer must be in writing and must be authorized by a resolution of the board of directors of the insurance company or of an authorized committee of the board. The terms of the custodial agreement must comply with the requirements of the director. Sec. 21.21.420. Regulations. The director shall adopt regulations regarding insurance company investments that are consistent with the defined limits standards for investments of the National Association of Insurance Commissioners. Sec. 21.21.600. Definitions. [Repealed, § 84 ch 81 SLA 2001.]