Alabama Administrative Code

(1) (a) Licensees Born in Odd-numbered Years, Renewal in 2009 and thereafter. Along with the renewal of license due to be completed in accordance with Paragraph (2) of Rule 482-1-110-.04 in the year 2009 and in every other year thereafter, every insurance representative born in a…

(1) The Commissioner shall, with the advice of the Continuing Education Advisory Committee, approve and authorize providers of continuing education courses and programs, and will designate any such course as being acceptable for the purposes of this chapter. Each such authority h…

(1) (a) Every producer and service representative subject to this chapter shall complete an application for license renewal in accordance with Rule 482-1-110-.04. (b) The license of any individual or business entity failing to complete the application for license renewal within t…

If any provision of this chapter, or the application thereof to any person or circumstance, is held invalid, such determination shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to that en…

This chapter shall become effective upon its approval by the Commissioner of Insurance, and upon its having been on file as a public document in the office of the Secretary of State for ten days. Notes Ala. Admin. Code r. 482-1-110-.09 New Rule: September 15, 1994; effective Octo…

The purpose of this chapter is to set forth the rules and requirements which the Commissioner deems necessary to apply to producers marketing credit insurance coverage, as described in the Alabama Consumer Credit Act, Title 5, Chapter 19, Code of Ala. 1975, (commonly referred to …

This chapter is adopted pursuant to Sections 27-2-17 and 27-7-43, Code of Ala. 1975. Author: Reyn Norman, Associate Counsel Notes Ala. Admin. Code r. 482-1-111-.02 New Rule: April 19, 1995; effective May 1, 1995. Amended: February 28, 2000; effective March 9, 2000. Amended: Septe…

The following definitions shall apply for purposes of this chapter: (a) ACTUAL CASH VALUE. In a GAP insurance policy, this term shall have the same meaning as under the physical damage insurance policy covering the leased property or collateral, but may be reduced by all or part …

Commissions may be paid only to licensed insurance producers. A business entity must have at least one individual who is licensed as an insurance producer for a particular line of authority who has been designated responsible for the business entity's compliance with the insuranc…

(1) In this state, no person shall be, act as, or claim to be a limited line credit insurance producer unless licensed in this state as an insurance producer under the provisions of Chapter 7 of Title 27, Code of Ala. 1975. A limited line credit insurance producer may only market…

(1) Business Entities. To be licensed as a producer, business entities shall comply with the requirements set forth in Chapter 482-1-147. To renew a producer license, business entities shall comply with the requirements set forth in Chapter 482-1-110. (2) Individuals. To be licen…

If any provisions of this chapter, or the application thereof to any person or circumstance, is held invalid, such determination shall not affect other provisions or applications or sections of this chapter which can be given effect without the invalid provision or application, a…

This chapter shall become effective upon its approval by the Commissioner of Insurance, and upon its having been on file as a public document in the office of the Secretary of State for ten days. Author: Reyn Norman, Associate Counsel Notes Ala. Admin. Code r. 482-1-111-.08 New R…

The purpose of this chapter is to prescribe: (a) Requirements for statements of actuarial opinion that are to be submitted in accordance with Section 27-36A-4, Code of Ala. 1975, and for memoranda in support thereof. (b) Rules applicable to the appointment of an appointed actuary…

This chapter is adopted pursuant to Sections 27-2-17 and 27-36A-1 to 27-36A-20, Code of Ala. 1975. Notes Ala. Admin. Code r. 482-1-112-.02 New: September 23, 1996; effective October 3, 1996. Revised: November 25, 2003; effective January 1, 2004. Filed with LRS November 25, 2003. …

(1) This chapter shall apply to all life insurance companies and fraternal benefit societies doing business in this State and to all life insurance companies and fraternal benefit societies that are authorized to reinsure life insurance, annuities, or accident and health insuranc…

The following definitions shall apply for purposes of this chapter: (a) ACTUARIAL OPINION. The opinion of an Appointed Actuary regarding the adequacy of the reserves and related actuarial items based on an asset adequacy analysis in accordance with Rule 482-1-112-.06 and with app…

(1) Submission of Statement of Actuarial Opinion. (a) There is to be included on or attached to Page 1 of the annual statement for each year beginning with the year in which this chapter becomes effective the statement of an appointed actuary, entitled "Statement of Actuarial Opi…

(1) General Description. The statement of actuarial opinion submitted in accordance with this rule shall consist of all of the following: (a) A paragraph identifying the appointed actuary and his or her qualifications (see subparagraph (a) of paragraph (2) this rule). (b) A scope…

(1) General. (a) In accordance with of Section 27-36A-4, Code of Ala. 1975, the appointed actuary shall prepare a memorandum to the company describing the analysis done in support of his or her opinion regarding the reserves. The memorandum shall be made available for examination…

If any provision of this chapter, or the application thereof to any person or circumstance, is held invalid, such determination shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to that en…

This chapter shall become effective January 1, 2004, upon its approval by the Commissioner of Insurance and upon its having been on file as a public document in the office of the Secretary of State for ten days and shall apply to annual statements for the year 2004 and thereafter…

The purpose of this chapter is to regulate accelerated benefit provisions of individual and group life insurance policies and to provide required standards of disclosure. This chapter shall apply to all accelerated benefits provisions of individual and group life insurance polici…

This chapter is promulgated by the Commissioner of Insurance pursuant to Section 27-2-17, Code of Alabama 1975. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-113-.02 New: September 23, 1996; effective January 1, 1997. Filed for codification in the Alabama Admi…

(1) ACCELERATED BENEFITS. Benefits payable under a life insurance contract: (a) To a policyowner or certificateholder, during the lifetime of the insured, in anticipation of death or upon the occurrence of specified life-threatening or catastrophic conditions as defined by the po…

Accelerated benefit riders and life insurance policies with accelerated benefit provisions are primarily mortality risks rather than morbidity risks. They are life insurance benefits subject to Chapter 15 of the Insurance Code. Author: Commissioner of Insurance Notes Ala. Admin. …

Prior to the payment of the accelerated benefit, the insurer is required to obtain from any assignee or irrevocable beneficiary a signed acknowledgement of concurrence for payout. If the insurer making the accelerated benefit is itself the assignee under the policy, no such ackno…

(1) Lump Sum Settlement Option Required. Contract payment options shall include the option to take the benefit as a lump sum. The benefit shall not be made available as an annuity contingent upon the life of the insured. (2) Restrictions on Use of Proceeds. No restrictions are pe…

(1) Descriptive Title. The terminology "accelerated benefit" shall be included in the descriptive title. Products regulated under this chapter shall not be described or marketed as long-term care insurance or as providing long-term care benefits. (2) Tax Consequences. A disclosur…

The accelerated benefit provision shall be effective for accidents on the effective date of the policy or rider. The accelerated benefit provision shall be effective for illness no more than thirty (30) days following the effective date of the policy or rider. Author: Commissione…

The insurer may offer a waiver of premium for the accelerated benefit provision in the absence of a regular waiver of premium provision being in effect. At the time the benefit is claimed, the insurer shall explain any continuing premium requirement to keep the policy in force. A…

Insurers shall not unfairly discriminate among insureds with differing qualifying events covered under the policy or among insureds with similar qualifying events covered under the policy. Insurers shall not apply further conditions on the payment of the accelerated benefits othe…

(1) Financing Options (a) The insurer may require a premium charge or cost of insurance charge for the accelerated benefit. These charges shall be based on sound actuarial principles. In the case of group insurance, the additional cost may also be reflected in the experience rati…

(1) Actuarial Memorandum. A qualified actuary should describe the accelerated benefits, the risks, the expected costs and the calculation of statutory reserves in an actuarial memorandum accompanying each state filing. The insurer shall maintain in its files descriptions of the b…

The filing of forms containing an accelerated benefit is required. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-113-.13 New: September 23, 1996; effective January 1, 1997. Filed for codification in the Alabama Administrative Code by the Department of Insuranc…

If any provision of this chapter, or the application thereof to any person or circumstance, is held invalid, such determination shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to that en…

This chapter shall be effective on January 1, 1997. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-113-.15 New: September 23, 1996; effective January 1, 1997. Filed for codification in the Alabama Administrative Code by the Department of Insurance on November 1…

The purpose of this chapter is to provide rules for life insurance policy illustrations that will protect consumers and foster consumer education. The chapter provides illustration formats, prescribes standards to be followed when illustrations are used, and specifies the disclos…

This chapter is promulgated by the Commissioner of Insurance pursuant to Section 27-2-17, Code of Ala. 1975. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-114-.02 New Rule: Filed October 15, 1996; effective January 1, 1998. Filed for codification in the Alabam…

This chapter applies to all group and individual life insurance policies and certificates except: A. Variable life insurance; B. Individual and group annuity contracts; C. Credit life insurance; or D. Life insurance policies with no illustrated death benefits on any individual ex…

For the purposes of this chapter: A. "Actuarial Standards Board" means the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice. B. "Contract premium" means the gross premium that is required to be paid under a fixed pre…

A. Each insurer marketing policies to which this chapter is applicable shall notify the commissioner whether a policy form is to be marketed with or without an illustration. For all policy forms being actively marketed on the effective date of this chapter, the insurer shall iden…

A. An illustration used in the sale of a life insurance policy shall satisfy the applicable requirements of this chapter, be clearly labeled "life insurance illustration" and contain the following basic information: (1) Name of insurer; (2) Name and business address of producer o…

A. Format. A basic illustration shall conform with the following requirements: (1) The illustration shall be labeled with the date on which it was prepared. (2) Each page, including any explanatory notes or pages, shall be numbered and show its relationship to the total number of…

A. A supplemental illustration may be provided so long as: (1) It is appended to, accompanied by or preceded by a basic illustration that complies with this chapter; (2) The non-guaranteed elements shown are not more favorable to the policy owner than the corresponding elements b…

A. (1) If a basic illustration is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustration, signed in accordance with this chapter, shall be sub…

A. In the case of a policy designated as one for which illustrations will be used, the insurer shall provide each policy owner with an annual report on the status of the policy that shall contain at least the following information: (1) For universal life policies, the report shal…

A. The board of directors of each insurer shall appoint one or more illustration actuaries. B. The illustration actuary shall certify that the disciplined current scale used in illustrations is in conformity with the Actuarial Standard of Practice for Compliance with the NAIC Mod…

In addition to any other penalties provided by the laws of this state, an insurer or producer that violates a requirement of this chapter shall be guilty of a violation of Section 27-12-6, Code of Ala. 1975. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-114-.1…

If any provision of this chapter, or the application thereof to any person or circumstance, is held invalid, such determination shall not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to that en…