SB 213 Summary

• Comprehensively revises Alaska's reinsurance credit requirements by establishing multiple tiers of allowable credit based on reinsurer licensing, accreditation, or certification status, with varying security requirements.

• Creates new framework for certified reinsurers including requirements for minimum capital and surplus ($250 million), financial strength ratings, and jurisdiction qualification standards determined by the director.

• Establishes AS 21.18.112 as new standard valuation law for insurance policies and contracts issued on or after the operative date of the National Association of Insurance Commissioners' valuation manual, requiring appointed actuaries to provide annual opinions on reserve adequacy.

• Implements principle-based valuation methodology allowing insurers to establish reserves using their own assumptions and methods subject to margin and conservatism requirements, rather than relying solely on prescribed formulas.

• Updates nonforfeiture interest rates and mortality tables for life insurance policies to align with valuation manual standards while maintaining transitional provisions for policies issued before the valuation manual's effective date.