Alaska § 21.75.170 - Subscriber's advisory committee.

§ 21.75.170. Subscriber's advisory committee.

 (a) The subscriber's advisory committee shall meet at least annually and shall consist of not less than nine individuals elected by the subscribers, at least two-thirds of whom are subscribers or officers or directors of subscriber corporations and, except for a reciprocal insurer that wholly owns its attorney-in-fact, not more than one-third of whom may be        (1) the attorney-in-fact or an employee, officer, director, affiliate, or a person having a financial interest in the attorney-in-fact; or

 (2) a person representing the attorney-in-fact or an employee, officer, director, affiliate, or other person having a financial interest in the attorney-in-fact; a person shall be treated as having a financial interest in the attorney-in-fact if the person             (A) owns, directly or indirectly, more than one percent of the outstanding stock in the attorney-in-fact;

 (B) has an outstanding loan from the attorney-in-fact; or

 (C) earns a commission or other compensation as a producer for the reciprocal insurer.

 (b) A member of the subscriber's advisory committee may be elected to a term of office of not less than one year nor more than four years. A member may be reelected for an unlimited number of terms. Terms of office may be staggered to provide for continuity.

 (c) The chair of the committee shall be elected by the members of the committee and the committee shall adopt rules consistent with the purposes of the committee.

 (d) The attorney-in-fact shall appoint a secretary.

 (e) Special meetings of the committee may be called by the attorney-in-fact, the chair of the committee, three members of the committee, or a signed petition of at least one percent of the subscribers or three individual subscribers, whichever is greater, as of the most recent annual report of the reciprocal insurer.

 (f) The committee shall        (1) supervise the finances of the reciprocal insurer;

 (2) supervise the reciprocal insurer's operations to assure conformity with the subscriber's agreement;

 (3) procure the audit of the accounts and records of the reciprocal insurer and of the attorney-in-fact at the expense of the reciprocal insurer; and

 (4) have additional powers and functions that may be conferred by the subscriber's agreement.

 (g) Notwithstanding (a) of this section, a domestic reciprocal insurer transacting all of its insurance activities on a subject resident, located, or to be performed in this state may, with the prior written approval of the director, have a subscriber's advisory committee that consists of not less than five individuals who are elected by the subscribers, and who otherwise meet the requirements of (a) of this section.