Alabama Administrative Code

In place of the mediation required by this Chapter, an insurer may submit its own alternative dispute resolution program to the Commissioner for approval. If approved the insurer would not otherwise be subject to this Chapter. Author: Commissioner of Insurance Notes Ala. Admin. C…

If a court holds any paragraph or portion of a paragraph of this chapter or the applicability thereof to any person or circumstance invalid, the remainder of the chapter shall not be affected thereby. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-135-.10 New R…

This chapter shall become effective ten (10) days from the date of certification that the properly executed chapter was delivered to the Secretary of State. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-135-.11 New Rule: December 21, 2005; effective December 3…

This chapter is adopted pursuant to Section 27-2-17, Code of Ala. 1975. Notes Ala. Admin. Code r. 482-1-136-.01 New Rule: December 21, 2005; effective December 31, 2005. Filed with LRS December 21, 2005. Rule is not subject to the Alabama Administrative Procedure Act. Amended: Ma…

The purpose of this chapter is to require insurers, under certain circumstances, to provide notice of a proposed coverage restriction to be imposed at renewal, or a non-renewal of coverage, as defined herein, so that policyholders have time to shop for alternative coverage if so …

This chapter applies to all authorized insurers providing property insurance in the state of Alabama for residential and/or commercial properties. Notes Ala. Admin. Code r. 482-1-136-.03 New Rule: December 21, 2005; effective December 31, 2005. Filed with LRS December 21, 2005. R…

As used in this chapter, these words and terms have the following meanings, unless the context clearly indicates otherwise. (a) COMMISSIONER. The Alabama Commissioner of Insurance. (b) COVERAGE RESTRICTION. Any imposition of a wind exclusion or hurricane deductible, or increasing…

(1) Every insurer shall provide written notice of a coverage restriction and of a non-renewal of coverage, as defined herein, to the Commissioner no less than one hundred and fifty (150) days prior to the effective date of the proposed coverage restriction or non-renewal of cover…

If any portion of this chapter or its applicability to any person or circumstance is held invalid by a court, the remainder of the chapter or the applicability of the provision to other persons or circumstances shall not be affected. Notes Ala. Admin. Code r. 482-1-136-.06 New Ru…

This chapter shall be 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. 482-1-136-.07 New Rule: December 21, 2005; effective December 3…

This chapter is issued under the authority of Sections 27-2-17 and 27-12-1, et seq., Code of Ala. 1975. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-137-.01 New Rule: May 19, 2006; effective January 1, 2007. Filed with LRS May 22, 2006. Rule is not subject to…

(1) The purpose of this chapter is to require producers, as defined in this chapter, to act in the best interest of the consumer when making a recommendation of an annuity and to require insurers to establish and maintain a system to supervise recommendations so that the insuranc…

This chapter shall apply to any sale or recommendation of an annuity. Notes Ala. Admin. Code r. 482-1-137-.03 New Rule: May 19, 2006; effective January 1, 2007. Filed with LRS May 22, 2006. Rule is not subject to the Alabama Administrative Procedure Act. Amended by Alabama Admini…

Unless otherwise specifically included, this chapter shall not apply to transactions involving: (a) Direct response solicitations where there is no recommendation based on information collected from the consumer pursuant to this chapter. (b) Contracts used to fund any of the foll…

The following definitions shall also apply in this chapter: (a) ANNUITY. An annuity that is an insurance product under state law that is individually solicited, whether the product is classified as an individual or group annuity. (b) CASH COMPENSATION. Any discount, concession, f…

(1) Best Interest Obligations. A producer, when making a recommendation of an annuity, shall act in the best interest of the consumer under the circumstances known at the time the recommendation is made, without placing the producer's or the insurer's financial interest ahead of …

(1) A producer shall not solicit the sale of an annuity product unless the producer has adequate knowledge of the product to recommend the annuity and the producer is in compliance with the insurer's standards for product training. A producer may rely on insurer-provided product-…

(1) An insurer is responsible for compliance with this chapter. If a violation occurs, either because of the action or inaction of the insurer or its producer, the commissioner may order any of the following: (a) An insurer to take reasonably appropriate corrective action for any…

(1) Insurers, general agents, independent agencies and producers shall maintain or be able to make available to the commissioner records of the information collected from the consumer, disclosures made to the consumer, including summaries of oral disclosures, and other informatio…

If any portion of this chapter or its applicability to any person or circumstance is held invalid by a court, the remainder of the chapter or the applicability of the provision to other persons or circumstances shall not be affected. Author: Commissioner of Insurance Notes Ala. A…

This chapter shall be effective January 1, 2022, 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. 482-1-137-.10 New Rule: May 19, 2006; effectiv…

This chapter is promulgated by the Commissioner of Insurance pursuant to Sections 27-2-17, and 27-31B-17, Code of Ala. 1975. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-138-.01 New Rule: August 1, 2006; effective August 11, 2006. Filed with LRS August 1, 200…

The purpose of this chapter is to set forth the financial and reporting requirements which the Commissioner deems necessary for the regulation of captive insurance companies, as authorized by Sections 27-31B-1, et seq., Code of Ala. 1975. Reference hereunder to "company" shall me…

(1) An association captive insurance company doing business in this state shall annually submit to the commissioner a report of its financial condition, verified by oath of two of its executive officers. The report shall be that required by Section 27-31B-9, Code of Ala. 1975. (2…

(1) All companies shall have an annual audit by an independent certified public accountant, authorized by the commissioner and shall file such audited financial report with the commissioner on or before June 30 for the year ending December 31 immediately preceding. The annual aud…

Companies, after becoming subject to this chapter, shall within ninety (90) days provide a written report to the commissioner indicating the name and address of the independent certified public accountant retained to conduct the annual audit set forth in this chapter. Author: Com…

A company shall require the certified public accountant to immediately notify in writing an officer and all members of the Board of Directors of the company of any determination by the independent certified public accountant that the company has materially misstated its financial…

Each company shall require the independent certified public accountant to make available for review by the commissioner or his appointed agent the work papers prepared in the conduct of the audit of the company. The company shall require that the accountant retain the audit work …

Whenever the commissioner deems that the financial condition of the company warrants additional security, the commissioner may require a company to deposit with the Treasurer of this state cash or securities approved by the commissioner or, alternatively, to furnish the commissio…

In addition to processing of the application, an organizational investigation or examination may be performed before an applicant is licensed. Such investigation or examination shall consist of a general survey of the company's corporate records, including charter, bylaws and min…

Any captive insurance company authorized to do business in this state may take credit for reserves on risks ceded to a reinsurer subject to the following limitations: (a) No credit shall be allowed for reinsurance where the reinsurance contract does not result in the complete tra…

No person shall, in or from within this state, act as an insurance manager, broker, agent, salesman, or reinsurance intermediary for captive business without the authorization of the commissioner. Application for such authorization must be on a form prescribed by the commissioner…

Every company shall report to the commissioner within thirty (30) days after any change in its executive officers or directors, including in its report a statement of the business and professional affiliations of any new executive officer or director. No director, officer, or emp…

Each company chartered in this state is required to adopt a conflict of interest statement for officers, directors and key employees. The statement shall disclose that the individual has no outside commitments, personal or otherwise, that would divert the individual from his or h…

(1) The commissioner may, subject to the provisions of this rule, by order rescind the license of the company for any of the following: (a) If the company has not commenced business according to its plan of operation within two(2) years of being licensed. (b) If the company cease…

No person other than the issuer shall make a tender offer of or a request or invitation for tenders of, or enter into any agreement to exchange securities for, seek to acquire, or acquire in the open market or otherwise, any voting security of a domestic company if, after the con…

Any change in the nature of the captive business from that stated in the company's plan of operation filed with the commissioner upon application requires prior approval from the commissioner. Any change in any other information filed with the application must be filed with the c…

A captive insurer's initial free surplus is the minimum additional assets required of a captive insurer over and above the minimum required basic surplus for the lines of insurance authorized to be written. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-138-.17…

(1) In addition to any requirements in Code of Ala. 1975, Sections §§ 27-31B-1, et. seq., Alabama domiciled risk retention groups formed as captives are subject to the following chapters and sections of the Alabama Insurance Code, Title 27, Code of Ala. 1975: (a) The following se…

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 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: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-138-.19 New Rule: Augus…

(1) The Commissioner of Insurance hereby sets the following fees as are declared necessary for the administration and enforcement of Chapter 3lB of Title 27, Code of Ala. 1975, relating to the regulation of captive insurers, adjusted according to Code of Ala. 1975, § 41-1-11: (a)…

This chapter is promulgated by the Commissioner of Insurance pursuant to Sections 27-2-17 and 27-36A-1 to 27-36A-20, Code of Ala. 1975. Notes Ala. Admin. Code r. 482-1-139-.01 New Rule: Filed December 20, 2006; effective January 1, 2007. Filed with LRS December 20, 2006. Rule is …

The purpose of this chapter is to recognize, permit and prescribe the use of mortality tables that reflect differences in mortality between preferred and standard lives in determining minimum reserve liabilities in accordance with Section 27-36A-5(b)(1)(c) (Computation of Minimum…

As used in this chapter, these words and terms have the following meanings, unless the context clearly indicates otherwise: (a) "2001 CSO Mortality Table" means that mortality table, consisting of separate rates of mortality for male and female lives, developed by the American Ac…

At the election of the company, for each calendar year of issue, for any one or more specified plans of insurance and subject to satisfying the conditions stated in this chapter, the 2001 CSO Preferred Class Structure Mortality Table may be substituted in place of the 2001 CSO Sm…

(1) For each plan of insurance with separate rates for Preferred and Standard Nonsmoker lives, an insurer may use the Super Preferred Nonsmoker, Preferred Nonsmoker, and Residual Standard Nonsmoker tables to substitute for the Nonsmoker mortality table found in the 2001 CSO Morta…

If any provision of this chapter or its application to any person or circumstance is for any reason held to be invalid, the remainder of the chapter and the application of the provision to other persons or circumstances shall not be affected. Notes Ala. Admin. Code r. 482-1-139-.…

This chapter shall become effective on January 1, 2007, 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. 482-1-139-.07 New Rule: Filed December …

This chapter is issued under the authority of Code of Ala. 1975, §§ 27-2-17 and 27-12-1 et seq. Notes Ala. Admin. Code r. 482-1-140-.01 New Rule: Filed September 5, 2007; effective September 29, 2007. Filed with LRS September 5, 2007. Rule is not subject to the Alabama Administra…