ALASKA INSURANCE GUARANTY ASSOCIATION ASSESSMENTS

BULLETIN B20-14

 

TO:     INSURERS AUTHORIZED TO TRANSACT PROPERTY AND CASUALTY BUSINESS IN THE STATE OF ALASKA AND OTHER INTERESTED PARTIES

 

RE:     ALASKA INSURANCE GUARANTY ASSOCIATION ASSESSMENTS

 

Chapter 80 of the Alaska Insurance Code (AS 21.80) establishes the Alaska Insurance Guaranty Association (AIGA) as a mechanism to pay covered claims under certain insurance policies to minimize loss to policyholders in the event of the insolvency of an insurer.  AS 21.80.060(a)(3) describes the assessment process, and AS 21.80.140 explains that insurers may include surcharge rates sufficient to offset the adjusted assessments paid to the AIGA by a member insurer.

 

Bulletin B04-10 instructs insurers to submit a rate filing if the assessment will be passed on to policyholders through a policyholder surcharge.  This bulletin is to notify insurers that rate filings are no longer required unless an insurer seeks to impose a policyholder surcharge rate that exceeds the amount necessary to offset the adjusted assessments made by the AIGA for the applicable period. 

 

It is expected that insurers electing to pass AIGA assessments on to policyholders through a policyholder surcharge will continue to do so in a fair and consistent manner, even in the absence of a rate filing requirement.

 

If you have questions regarding this bulletin, please contact the Division of Insurance, P.O. Box 110805, Juneau, AK 99811-0805; (907) 465-2515; or via email at insurance@alaska.gov.

 

To the extent there is a conflict, bulletin B20-14 supersedes bulletin B04-10.

 

 

Dated: August, 7, 2020

 

                    Lori Wing-Heier

                                                                                    Director

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