Alabama Administrative Code

(1) The purpose of this chapter is to set forth standards to protect active duty service members of the United States Armed Forces from dishonest and predatory insurance sales practices by declaring certain identified practices to false, misleading, deceptive or unfair. (2) Nothi…

This chapter shall apply only to the solicitation or sale of any life insurance or annuity product by an insurer or insurance producer to an active duty service member of the United States Armed Forces. Notes Ala. Admin. Code r. 482-1-140-.03 New Rule: Filed September 5, 2007; ef…

(1) This chapter shall not apply to solicitations or sales involving any of the following: (a) Credit insurance. (b) Group life insurance or group annuities where there is no in-person, face-to-face solicitation of individuals by an insurance producer or where the contract or cer…

As used in this chapter, these words and terms have the following meanings, unless the context clearly indicates otherwise: (a) "Active Duty" means full-time duty in the active military service of the United States and includes members of the reserve component (National Guard and…

(1) The following acts or practices when committed on a military installation by an insurer or insurance producer with respect to the in-person, face-to-face solicitation of life insurance are declared to be false, misleading, deceptive or unfair: (a) Knowingly soliciting the pur…

(1) The following acts or practices by an insurer or insurance producer constitute corrupt practices, improper influences or inducements and are declared to be false, misleading, deceptive or unfair: (a) Submitting, processing or assisting in the submission or processing of any a…

If any provision of these rules or the application thereof to any person or circumstance is held invalid for any reason, the invalidity shall not affect the other provisions or any other application of these rules which can be given effect without the invalid provisions or applic…

This chapter shall become effective December 21, 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. 482-1-140-.09 New Rule: Filed September…

This chapter is promulgated by the Commissioner of Insurance pursuant to Sections 27-2-17, 27-3-26, and 27-7-43, Code of Ala. 1975. Notes Ala. Admin. Code r. 482-1-141-.01 New: Filed January 31, 2008; effective July 1, 2008. Filed with LRS February 1, 2008. Rule is not subject to…

(1) The purpose of this chapter is to improve the Alabama Insurance Department's surveillance of the financial condition of insurers by requiring all of the following: (a) An annual audit of financial statements reporting the financial position and the results of operations of in…

The following definitions shall apply for purposes of this chapter: (a) "Accountant" or "independent certified public accountant" means an independent certified public accountant or accounting firm in good standing with the American Institute of Certified Public Accounts (AICPA) …

(1) All insurers shall have an annual audit by an independent certified public accountant and shall file an audited financial report with the commissioner on or before June 1 for the year ended December 31 immediately preceding. The commissioner may require an insurer to file an …

(1) The annual audited financial report shall report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flows and changes in capital and surplus for the year then ended in conformity with statutory accounti…

(1) Each insurer required by this chapter to file an annual audited financial report must within sixty (60) days after becoming subject to the requirement, register with the commissioner in writing the name and address of the independent certified public accountant or accounting …

(1) The commissioner shall not recognize a person or firm as a qualified independent certified public accountant if the person or firm:(a) Is not in good standing with the AICPA and in all states in which the accountant is licensed to practice, or, for a Canadian or British compa…

An insurer may make written application to the commissioner for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of insurance companies that utilizes a pooling or 100 p…

Financial statements furnished pursuant to rule 482-1-141-.05 shall be examined by the independent certified public accountant. The audit of the insurer's financial statements shall be conducted in accordance with generally accepted auditing standards. In accordance with AU Secti…

(1) The insurer required to furnish the annual audited financial report shall require the independent certified public accountant to report, in writing, within five (5) business days to the board of directors or its audit committee any determination by the independent certified p…

(1) In addition to the annual audited financial report, each insurer shall furnish the commissioner with a written communication as to any unremediated material weaknesses in its internal controls over financial reporting noted during the audit. Such communication shall be prepar…

The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating all of the following: (1) That the accountant is independent with respect to the insurer and conforms to the standards of his or …

(1) Workpapers are the records kept by the independent certified public accountant of the procedures followed, the tests performed, the information obtained, and the conclusions reached pertinent to the accountant's audit of the financial statements of an insurer. Workpapers, acc…

(1) The audit committee shall be directly responsible for the appointment, compensation and oversight of the work of any accountant (including resolution of disagreements between management and the accountant regarding financial reporting) for the purpose of preparing or issuing …

(1) (a) Exemption. An insurer is exempt from the requirements of this rule if: 1. The insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal Crop Insurance Corporatio…

(1) No director or officer of an insurer shall, directly or indirectly: (a) Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review or communication required under this chapter. (b) Omit to state, or cause another …

(1) Every insurer required to file an audited financial report pursuant to this chapter that has annual direct written and assumed premiums, excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of $500,000,000 or more shall prepare a…

(1) Upon written application of any insurer, the commissioner may grant an exemption from compliance with any and all provisions of this chapter if the commissioner finds, upon review of the application, that compliance with this chapter would constitute a financial or organizati…

(1) In the case of Canadian and British insurers, the annual audited financial report shall be defined as the annual statement of total business on the form filed by such companies with their supervision authority duly audited by an independent chartered accountant. (2) For such …

If any section or portion of a section 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…

This chapter shall be effective January 1, 2019, 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. 482-1-141-.21 Adopted by Alabama Administrativ…

This chapter is promulgated by the Commissioner of Insurance pursuant to Section 27-2-17, Code of Ala. 1975. Notes Ala. Admin. Code r. 482-1-142-.01 New: Filed December 19, 2007; effective January 1, 2008. Filed with LRS December 19, 2007. Rule is not subject to the Alabama Admin…

This chapter is intended to implement and interpret Sections 27-3-17, 27-27-4 through 14, 27-27-23, 27-27-24 and 27-29-3Code of Ala. 1975, for the purpose of setting standards for the reporting of biographical data relating to company officers, directors, promoters and incorporat…

This chapter shall apply to all persons proposing to form an insurer under the laws of this state and to all nondomestic insurers applying for admission to this state and to all insurers authorized to do business in this state except as follows: (1) Domestic fraternal benefit soc…

Biographical information in form and substance substantially in accordance with the current NAIC Biographical affidavit and authorization, (Attachment A) shall be furnished to the commissioner of insurance by all promoters, incorporators, directors, trustees and principal officer…

The term "officer" as used in this chapter shall include the president, one or more vice presidents, secretary, treasurer, chief actuary, general counsel, comptroller and any person, however described, who enjoys in fact the executive authority of any such officers. Notes Ala. Ad…

A report shall be provided by each domestic insurer to which this chapter applies with respect to the appointment or election of any new director, trustee or officer elected or appointed within fifteen (15) days after such appointment or election. Such report shall be prepared by…

When such a report has been provided to the commissioner by a company in accordance with paragraphs .04 and .06 of this chapter, no further report concerning subsequent changes in his status as an officer or director of such company need be reported to the commissioner provided; …

The commissioner may request from any company such additional information with respect to any of its officers or directors as he may deem necessary and such request shall be promptly complied with by the company to which such request is directed. Notes Ala. Admin. Code r. 482-1-1…

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. Notes Ala. Admin. Code r. 482-1-142-.09 New: Filed December 19, 2007; effective…

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 and January 1, 2008. Notes Ala. Admin. Code r. 482-1-142-.10 New: Filed December 19, 2007; effective January 1, 2008. Filed …

This chapter is promulgated by the Commissioner of Insurance pursuant to §§ 27-2-17 and 27'-36-7, Code of Ala. 1975. Notes Ala. Admin. Code r. 482-1-143-.01 New: Filed November 7, 2008; effective January 1, 2009. Filed with LRS November 12, 2008. Rule is not subject to the Alabam…

The purpose of this chapter is to establish for preneed insurance products minimum mortality standards for reserves and nonforfeiture values, and to require the use of the 1980 Commissioners Standard Ordinary (CSO) Life Valuation Mortality Table for use in determining the minimum…

This chapter applies to life insurance used as a direct or indirect funding method for preneed contracts for funeral or cemetery merchandise and services as defined in 482-1-143-.04. Notes Ala. Admin. Code r. 482-1-143-.03 New: Filed November 7, 2008; effective January 1, 2009. F…

(1) 2001 CSO MORTALITY TABLE. That mortality table, consisting of separate rates of mortality for male and female lives, developed by the American Academy of Actuaries CSO Task Force from the Valuation Basic Mortality Table developed by the Society of Actuaries Individual Life In…

For contracts of preneed insurance as defined in 482-1-143-.04, the minimum mortality standard for determining reserve liabilities and non-forfeiture values for both male and female insureds shall be the Ultimate 1980 CSO. Notes Ala. Admin. Code r. 482-1-143-.05 New: Filed Novemb…

(1) The interest rates used in determining the minimum standard for valuation of preneed insurance shall be the calendar year statutory valuation interest rates as defined in Code of Ala. 1975, § 27-36-7. (2) The interest rates used in determining the minimum standard for nonforf…

(1) The method used in determining the standard for the minimum valuation of reserves of preneed insurance shall be the method defined in Code of Ala. 1975, § 27-36-7. (2) The method used in determining the standard for the minimum nonforfeiture values for preneed insurance shall…

(1) For preneed insurance policies issued on or after the effective date of this chapter and before January 1, 2012, the 2001 CSO may be used as the minimum standard for reserves and minimum standard for non-forfeiture benefits for both male and female insureds. (2) If an insurer…

If any portion of this chapter or its applicability to any person or circumstance is held invalid by a court, the remainder of this chapter or its applicability to other persons or circumstances shall not be affected. Notes Ala. Admin. Code r. 482-1-143-.09 New: Filed November 7,…

This chapter is applicable to policies or certificates of preneed insurance issued on or after the later to occur of (i) 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, or (i…

The purpose of this chapter is to establish requirements for the electronic filing of premium tax and surplus line broker tax returns and for payment of premium taxes, certain fees, and surplus line broker taxes by electronic funds transfer. Notes Ala. Admin. Code r. 482-1-144-.0…