HB 401 - Insurance, Reinsurance, and Valuation Summary

• Modernizes Alaska insurance reserve valuation standards by establishing a new "valuation manual" framework aligned with National Association of Insurance Commissioners standards, effective January 1 following the bill's enactment

• Expands reinsurance credit options by establishing a new "certified reinsurer" category with reduced security requirements for well-capitalized, highly-rated reinsurers, while maintaining existing accreditation and licensing pathways

• Adds new subsections to insurance law establishing procedures for trust agreements, suspension/revocation of reinsurer status, and management of reinsurance recoverables with 50 percent concentration limits

• Requires appointed actuaries to submit annual opinions on reserve adequacy using principle-based valuation methods that incorporate risk analysis and margins for uncertainty for specified policy types

• Allows the director to adopt regulations governing reinsurance arrangements for certain life insurance, health insurance, and annuity products with guaranteed benefits or nonlevel premiums