Changes to Exempt Commercial Purchaser Minimum Qualifying Amounts

THE STATE 0tALASKA Department of Commerce, Community, and Economic Development DfVISION OF fNSURAi'JCE GOVERNOR BILL WALKER 550 West Seventh Avenue. Suite 1560 Anchorage, Alaska 99501-3567 Main: 907.269.7900 Fax: 907.269.7910 BULLETIN B 15-01 TO: SURPLUS LINES BROKERS AND OTHER INTERESTED PARTIES RE: CHANGES TO EXEMPT COMMERCIAL PURCHASER MINIMUM QUALIFYING AMOUNTS Under Alaska Statute (AS) 21.34.900, the definition of "exempt commercial purchaser" has the meaning given under 15 U.S.C. 8206 (Nonadmitted and Reinsurance Reform Act of2010). Under 15 U.S.C. 8206(5)(C)(ii), the definition of exempt commercial purchaser with regard to the minimum qualifying amounts for three categories of exempt commercial purchaser are to increase on January 1, 2015. As prescribed in 15 U.S.C.(5)(C)(ii), "the amounts in subclauses (I), (II), and (IV) of clause (C)(i) shall be adjusted to reflect the percentage change for such five-year period in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the U.S. Department of Labor (CPI-U). The National Association of lnsurance Commissioners has adopted the following updates to the CPI-U and Alaska will be using these amounts as set forth herein. The percentage change calculation and adjusted minimum amounts for the affected categories are shown below: Change Calculation CPI-U September 2009 CPI-U September 2014 Adjustment Calculation: Percentage Change 215.969* 238.031 * = (238.031 - 215.969) I 215.969 = .102 or 10.2% Subclause Categorv Previous Minimum Adjusted Minimum (I) Net Worth (II) Annual Revenues (IV) Annual Budgeted Expenditures $20,000,000 $50,000,000 $30,000,000 (Effective 1/112015) $22,040,000 $55, 100,000 $33,060,000 Page 2 If you have any questions regarding this bulletin, contact Rebecca Nesheim at (907) 465-2584 or rebecca.nesheim@alaska.1wv. Dated January r, 2015