(a) If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under the order has a right to recover on behalf of the insurer (1) from a parent corporation or holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions, other than a distribution of shares of the same class of stock, paid by the insurer on the insurer's capital stock; or (2) a payment in the form of a bonus, termination settlement, or extraordinary lump sum salary adjustment made by the insurer or the insurer's subsidiary to a director, officer, or employee. If the distribution or payment is made during the 12 months preceding the petition for liquidation, conservation, or rehabilitation, the distribution or payment is subject to the limitations of (b) - (d) of this section.
(b) A distribution may not be recovered if the parent or affiliate shows that when paid the distribution was lawful and reasonable and that the insurer did not know and could not reasonably have known that the distribution might adversely affect the ability of the insurer to fulfill its contractual obligations.
(c) A person who was a parent corporation or holding company or a person who otherwise controlled the insurer or affiliate at the time the distribution was paid is liable up to the amount of the distribution or payment that the person received. If two or more persons are liable with respect to the same distribution, the persons are jointly and severally liable.
(d) The maximum amount recoverable under this section is the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse any guaranty funds that expended funds or incurred expenses or may expend funds or may incur expenses in connection with the impaired or insolvent insurer.
(e) To the extent that a person liable under (c) of this section is insolvent or otherwise fails to pay a claim due under (c) of this section, the person's parent corporation or holding company or person who otherwise controlled the parent corporation or holding company at the time the distribution was paid is jointly and severally liable for the resulting deficiency in the amount recovered from the parent corporation or holding company or the person who otherwise controlled the parent corporation or holding company.
Structure Alaska Statutes
Chapter 78. Rehabilitation and Liquidation
Sec. 21.78.010. Jurisdiction of delinquency proceedings.
Sec. 21.78.020. Commencement of delinquency proceedings.
Sec. 21.78.030. Injunctions and orders.
Sec. 21.78.040. Grounds for rehabilitation.
Sec. 21.78.050. Grounds for liquidation.
Sec. 21.78.060. Grounds for conservation, foreign insurers.
Sec. 21.78.070. Grounds for conservation, alien insurers.
Sec. 21.78.080. Grounds for ancillary liquidation.
Sec. 21.78.090. Order of rehabilitation.
Sec. 21.78.100. Order of liquidation, domestic insurers.
Sec. 21.78.110. Order of liquidation, alien insurers.
Sec. 21.78.120. Order of conservation or ancillary liquidation of foreign or alien insurers.
Sec. 21.78.130. Conduct of delinquency proceedings against domestic and alien insurers.
Sec. 21.78.140. Conduct of delinquency proceedings against foreign insurers.
Sec. 21.78.150. Claims of nonresidents against domestic insurers.
Sec. 21.78.160. Claims against foreign insurers.
Sec. 21.78.170. Form of claim.
Sec. 21.78.180. Priority of certain claims.
Sec. 21.78.190. Attachment and garnishment of assets.
Sec. 21.78.200. Uniform Insurers Liquidation Act.
Sec. 21.78.210. Deposit of money collected.
Sec. 21.78.220. Exemption from fees.
Sec. 21.78.230. Borrowing on pledge of assets.
Sec. 21.78.240. Date rights fixed on liquidation.
Sec. 21.78.250. Fraudulent transfers before petition.
Sec. 21.78.251. Fraudulent transfer after petition.
Sec. 21.78.252. Voidable preferences and liens.
Sec. 21.78.253. Claims of holders of void or voidable rights.
Sec. 21.78.260. Priority of distribution.
Sec. 21.78.270. Setoffs and counterclaims.
Sec. 21.78.271. Recovery of premiums owed.
Sec. 21.78.272. Reinsurer's liability.
Sec. 21.78.280. Special claims.
Sec. 21.78.281. Special provisions for third-party claims.
Sec. 21.78.290. Notice to creditors and others.
Sec. 21.78.291. Duties of agents.
Sec. 21.78.292. Filing of claims.
Sec. 21.78.293. Receiver's recommendation to the court.
Sec. 21.78.294. Distribution of assets.
Sec. 21.78.295. Unclaimed and withheld money.
Sec. 21.78.296. Termination of proceedings.
Sec. 21.78.297. Reopening liquidation.
Sec. 21.78.298. Disposition of records during and after termination of liquidation.
Sec. 21.78.300. Report and petition for assessment.
Sec. 21.78.310. Order and levy of assessment.
Sec. 21.78.320. Assessment prima facie correct.