AS 21.09.010. Certificate of Authority Required.
(a) A person may not act as an insurer and an insurer may not transact insurance in this state except as authorized by a subsisting certificate of authority issued to it by the director, except as to transactions which are expressly otherwise provided for in this title.
(b) An insurer may not have or maintain in this state an office, representative, or other facility for the solicitation or servicing of any kind of insurance in another state unless the insurer is authorized to transact the same kind of insurance in this state.

AS 21.09.020. Exceptions, Certificate of Authority Requirement.
A certificate of authority is not required of an insurer, not otherwise authorized in this state, in regard to
(1) transactions relative to its policies lawfully written in the state, or liquidation of assets and liabilities of the insurer (other than collection of new premiums), all as resulting from its former authorized operations in the state;
(2) related transactions subsequent to issuance of a policy covering only subjects of insurance not resident, located, or expressly to be performed in the state at time of issuance, and which coverage was lawfully solicited, written, and delivered outside the state;
(3) transactions under surplus lines coverages lawfully written under AS 21.34; or
(4) reinsurance, except as to domestic reinsurers.

Is the Muni registered as an insurance provider with the state? If not, is any insurance issued by the Muni valid? What are the penalties for issuing insurance when not a registered insurance provider?

Hey Toni. Yeah, I think you’re right. I don’t know if there’s the political will to do a real investigation, though — not unless the public puts a lot of pressure out for it. It’s interesting that Deputy City Attorney Rhonda Westover is the person who’s been tasked with figuring out & explaining how this thing came about (per the article), rather than Dennis Wheeler. But I think an independent investigation would be better. This whole thing stinks to me of lots of behind-closed-doors dealing.

Two votes for you for Muckracker of the Year in 2010 !