Alaska Stat. § 21.59.050 – Reserves

(a) An automobile service corporation shall establish and maintain unimpaired reserves as follows:
1. (1) a reserve in an amount not less than all legal obligations of the corporation, other than claims originating under subscriber's contracts, due but unpaid;
2. (2) a reserve equal to not less than the amount necessary by reasonable estimate to pay all claims incurred under subscriber's contracts but currently unpaid, and including a reasonable additional amount to cover claims incurred but not reported to the corporation at the time of determination of the corporation's financial condition; and
3. (3) a reserve equal to 50 percent of all sums charged and received by the corporation during the calendar period covered by the financial statement, on account of indemnity benefits provided in subscriber's contracts for terms for which premium was last paid and unexpired at the date of the financial statement.
(b) The reserves required under (a) of this section constitute a liability of the corporation in a determination of its financial condition.
(c) Instead of the reserves required by (a) of this section and the bond required by AS 21.59.030(2), the automobile service corporation may file a bond in the amount of $250,000.