0 chapters · 1,534 sections in this title.
Ala. Code § 27-27-1 Definitions
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For the purposes of this chapter, the following terms shall have the meanings respectively ascribed to them by this section: (1) STOCK INSURER. An incorporated insurer with capital divided into shares and owned by its stockholders. (2) DOMESTIC MUTUAL INSURER. An incorporated ins…
Ala. Code § 27-27-10 Solicitation Permit - Bond or Deposit in Lieu Thereof; Waiver of Same
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(a) Except as to proposed domestic insurers which are subject to the requirements of Section 27-27-16, the commissioner shall not issue a solicitation permit until the applicant therefor has filed with him a corporate surety bond in the penalty of $15,000.00 in favor of the State…
Ala. Code § 27-27-11 Licensing of Securities Salesmen
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Solicitation for sale of securities under a solicitation permit shall be made only by individuals licensed as securities salesmen pursuant to the provisions of the Alabama Securities Act. History: (Acts 1971, No. 407, p. 707, §507.)
Ala. Code § 27-27-12 Deposit of Solicitation Permit Funds in Escrow - Requirement
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(a) All funds received in Alabama pursuant to a solicitation permit, other than advance premiums for insurance which are subject to Section 27-27-18, shall, by the permit holder, be deposited and held in escrow in a bank or trust company located in this state under an agreement a…
Ala. Code § 27-27-13 Deposit of Solicitation Permit Funds in Escrow - Withdrawal and
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Refund. The commissioner shall withdraw all funds held in escrow under Section 27-27-12, and refund to securities subscribers or purchasers all sums paid in on securities subscriptions, less that part of such sums paid in as has been allowed and used for promotion, sales, and org…
Ala. Code § 27-27-14 Solicitation Permit for Subsequent Financing
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(a) No insurer, or insurance holding corporation, or stock corporation for financing operations of a mutual insurer, or attorney-in-fact corporation, or a reciprocal insurer, or any other type of organization existing for the same purpose, after: (1) It has received a certificate…
Ala. Code § 27-27-15 Domestic Mutual Insurers - Authorization to Transact Insurance
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(a) When newly organized, a domestic mutual insurer may be authorized to transact any one of the kinds of insurance listed in the schedule contained in subsection (b) of this section. (b) When applying for an original certificate of authority, the insurer must be otherwise qualif…
Ala. Code § 27-27-16 Domestic Mutual Insurers - Bond or Deposit in Lieu Thereof
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(a) Before soliciting any applications for insurance required under Section 27-27- 15, as qualification for the original certificate of authority, the incorporators of the proposed mutual insurer shall file with the commissioner a corporate surety bond in the penalty of $15,000.0…
Ala. Code § 27-27-17 Domestic Mutual Insurers - Solicitation of Qualifying Applications for
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Insurance. (a) Upon receipt of the commissioner’s approval of the bond or deposit as provided in Section 27-27-16 the directors and officers of the proposed domestic mutual insurer may commence solicitation of such requisite applications for insurance policies as they may accept …
Ala. Code § 27-27-18 Domestic Mutual Insurers - Deposit in Trust of Premiums or Fees on
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Qualifying Applications. (a) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company in this state under a written trust agreement approved by the commissioner …
Ala. Code § 27-27-19 Domestic Mutual Insurers - Failure to Complete Organization
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If the proposed domestic mutual insurer fails to complete its organization and to secure its original certificate of authority within one year from, and after, date of its certificate of incorporation, the corporation shall transact no further business, and the commissioner shall…
Ala. Code § 27-27-2 Applicability of Chapter
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This chapter shall apply only to domestic stock insurers and domestic mutual insurers; except, that: (1) Sections 27-27-4 through 27-27-14, relative to sale of securities or other financing of insurers or insurance operations, and subsection (b) of Section 27-27- 24 shall also ap…
Ala. Code § 27-27-20 Domestic Mutual Insurers - Authorization to Transact Additional Kinds of
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Insurance. A domestic mutual insurer, after being authorized to transact one kind of insurance, may be authorized by the commissioner to transact such additional kinds of insurance as are permitted under Section 27-3-6, while otherwise in compliance with this title and while main…
Ala. Code § 27-27-21 Domestic Mutual Insurers - Membership
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(a) Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer with all rights and obligations of such membership, and the policy shall so specify. (b) Any individual, or firm or any public or private corporation, board, or as…
Ala. Code § 27-27-22 Domestic Mutual Insurers - Bylaws
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(a) A domestic mutual insurer shall have bylaws for the government of its affairs. The initial board of directors of a domestic mutual insurer shall adopt original bylaws, subject to the approval of the insurer’s members at the next succeeding meeting. The members shall have powe…
Ala. Code § 27-27-23 Directors of Domestic Insurers - Number; Election; Qualifications
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(a) The affairs of every domestic insurer shall be managed by not less than three directors, and at least one-third of the directors shall be bona fide residents of this state. (b) Directors must be elected by the members or stockholders of a domestic insurer at the annual meetin…
Ala. Code § 27-27-24 Directors of Domestic Insurers - Removal; Vacancies
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(a) At a special meeting of stockholders or members called for that purpose, any director of a stock or mutual insurer may be removed from office by an affirmative vote of stockholders or members holding in the aggregate a majority of the voting power of all stockholders or membe…
Ala. Code § 27-27-25 Corrupt or Dishonest Practices in Meeting of Stockholders or Members
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No person shall buy, or sell or barter a vote or proxy relative to any meeting of stockholders or members of an insurer or engage in any corrupt or dishonest practice in, or relative to, the conduct of any such meeting. Violation of this section shall be punishable as provided in…
Ala. Code § 27-27-26 Pecuniary Interests of Officers, Etc., of Domestic Insurers
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(a) No officer or director of a domestic insurer, and no member of any committee or employee of a domestic insurer who is charged with the duty of investing or handling the funds of the insurer, shall do any of the following: (1) Deposit or invest the funds except in the corporat…
Ala. Code § 27-27-27 Exclusive Management and Production of Business Contracts by
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Domestic Insurers. (a) No domestic insurer shall hereafter make any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the substantial exclusion of its board of directors or to have the controlling or preemptive right to produce substan…
Ala. Code § 27-27-28 Notice of Change of Directors, Etc
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An insurer shall promptly give the commissioner written notice of any change of personnel among the directors or principal officers of the insurer. History: (Acts 1971, No. 407, p. 707, §524.)
Ala. Code § 27-27-29 Principal Place of Business and Home Office of Domestic Insurers;
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Maintenance of Assets in State; Removal of Records or Assets; Exceptions. (a) Every domestic insurer shall have, and maintain, its principal place of business and home office in this state and shall keep in this state complete records of its assets, transactions, and affairs in a…
Ala. Code § 27-27-3 Power of Domestic Insurers to Indemnify Directors, Etc
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Without limiting the powers and authorities of domestic insurers, as provided in Section 27-27-61, a domestic insurer shall have the power and is hereby authorized to indemnify any director, officer, or employee, or former director, officer, or employee of the corporation, or any…
Ala. Code § 27-27-30 Voucher or Other Document for Disbursements
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(a) No insurer shall make any disbursement of $25.00 or more unless evidenced by a voucher or other document correctly describing the consideration for the payment and support by a check or receipt endorsed or signed by, or on behalf of, the person receiving the money. (b) If the…
Ala. Code § 27-27-31 Contingent Liability of Members of Domestic Mutual Insurers -
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Generally. (a) Each member of a domestic mutual insurer shall, except as otherwise provided in this chapter with respect to nonassessable policies, have a contingent liability, pro rata and not one for another, for the discharge of its obligations, which contingent liability shal…
Ala. Code § 27-27-32 Contingent Liability of Members of Domestic Mutual Insurers - Levy of
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Assessments. (a) If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it under this title for authority to transact the kinds of insurance being transacted and the deficiency is not cur…
Ala. Code § 27-27-33 Collection of Assessments by Insurers
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(a) Any assessment made by an insurer under Section 27-27-32 or 27-27-42 is prima facie correct. The amount of such assessment to be paid by each member as determined by the insurer is likewise prima facie correct. (b) The insurer shall notify each member of the amount of the ass…
Ala. Code § 27-27-34 Nonassessable Policies in Mutual Insurers - Generally
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(a) While possessing surplus funds in amount not less than the paid-in capital stock required of a domestic stock insurer transacting like kinds of insurance, a domestic mutual insurer may, upon receipt of the commissioner’s order so authorizing, extinguish the contingent liabili…
Ala. Code § 27-27-35 Nonassessable Policies in Mutual Insurers - Revocation of Domestic
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Insurers Authority to Issue. The commissioner shall revoke the authority of a domestic mutual insurer to issue policies without contingent liability if at any time the insurer’s assets are less than the sum of its liabilities and the surplus required for such authority or if the …
Ala. Code § 27-27-36 Issuance of Participating or Nonparticipating Policies by Domestic
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Insurers. Unless prohibited by its articles of incorporation, a domestic stock or domestic mutual insurer may issue any, or all, of its policies with, or without, participation in profits, savings, or unabsorbed portions of premiums, may classify policies issued on a participatin…
Ala. Code § 27-27-37 Dividends - Domestic Stock Insurers
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(a) A domestic stock insurer shall not pay any cash dividend to stockholders except out of that part of its available surplus funds which is derived from realized net profits on its business. (b) A stock dividend may be paid out of any available surplus funds in excess of the agg…
Ala. Code § 27-27-38 Dividends - Domestic Mutual Insurers
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(a) The directors of a domestic mutual insurer may, from time to time, apportion and pay or credit to its members dividends only out of that part of its surplus funds which represents net realized savings and net realized earnings in excess of the surplus required by law to be ma…
Ala. Code § 27-27-39 Dividends - Liability for Illegal Dividends by Domestic Insurers
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(a) Any director of a domestic stock or mutual insurer who knowingly votes for, or concurs in, declaration or payment of a dividend to stockholders or members except as authorized in Sections 27-27-37 or 27-27-38 shall, upon conviction thereof, be guilty of a misdemeanor and shal…
Ala. Code § 27-27-4 Solicitation Permit - Requirement
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(a) No person forming, or proposing to form, in this state or secure funds in this state for the financing of an insurer, or insurance holding corporation or stock corporation to finance an insurer or corporation to be attorney-in-fact for a reciprocal insurer or a syndicate, ass…
Ala. Code § 27-27-40 Loans by Domestic Insurers
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(a) A domestic stock or mutual insurer may borrow money to defray the expenses of its organization, provide it with surplus funds or for any purpose of its business, upon a written agreement that such money is required to be repaid only out of the insurer’s surplus in excess of t…
Ala. Code § 27-27-41 Deficiencies in Stock Insurer’s Capital or Assets of Mutual Insurers -
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Generally. (a) If a stock insurer’s capital, as represented by the aggregated par value of its outstanding capital stock, becomes impaired or the assets of a mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it under Secti…
Ala. Code § 27-27-42 Deficiencies in Stock Insurer’s Capital or Assets of Mutual Insurers -
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Curing of Deficiency. Any insurer receiving the commissioner’s notice mentioned in Section 27-27-41: (1) If a stock insurer and if its articles of incorporation and laws of this state so permit, by resolution of its board of directors and subject to any limitations upon assessmen…
Ala. Code § 27-27-43 Mutualization of Stock Insurers
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(a) A stock insurer other than a title insurer may become a mutual insurer under such plan and procedure as may be approved by the commissioner after a hearing thereon. (b) The commissioner shall not approve any such plan, procedure, or mutualization unless: (1) It is equitable t…
Ala. Code § 27-27-44 Conversion of Mutual Insurer into Stock Insurer
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(a) A mutual insurer may become a stock insurer under such plan and procedure as may be approved by the commissioner after a hearing thereon. (b) The commissioner shall not approve any such plan or procedure unless: (1) It is equitable to the insurer’s members; (2) It is subject …
Ala. Code § 27-27-45 Merger and Consolidations - Domestic Stock Insurers
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(a) A domestic stock insurer may merge or consolidate with one or more domestic or foreign stock insurers by complying with the applicable provisions of the statutes of this state governing the merger or consolidation of stock corporations formed for profit, but subject to subsec…
Ala. Code § 27-27-46 Merger and Consolidations - Domestic Mutual Insurers
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(a) A domestic mutual insurer may merge or consolidate with another insurer under the applicable procedures prescribed by the statutes of this state applying to corporations formed for profit, except as provided in this section. (b) The plan and agreement for merger or consolidat…
Ala. Code § 27-27-47 Bulk Reinsurance - Domestic Stock Insurers
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(a) A domestic stock insurer may reinsure all, or substantially all, of its insurance in force or a major class thereof with another insurer by an agreement of bulk reinsurance, but no such agreement shall become effective unless filed with the commissioner and approved by him in…
Ala. Code § 27-27-48 Bulk Reinsurance - Domestic Mutual Insurers
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(a) A domestic mutual insurer may reinsure all, or substantially all, its business in force or all, or substantially all, of a major class thereof with another insurer, stock or mutual, by an agreement of bulk reinsurance after compliance with this section. No such agreement shal…
Ala. Code § 27-27-49 Distribution of Assets Upon Liquidation of Domestic Mutual Insurer
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(a) Upon any liquidation of a domestic mutual insurer, its assets remaining after discharge of its indebtedness, policy obligations, repayment of contributed or borrowed surplus, if any, and expenses of administration shall be distributed to existing persons who were its members …
Ala. Code § 27-27-49.1 Recovery
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(a) If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under such order shall have a right to recover on behalf of the insurer, (i) from any parent corporation or holding company or person or affiliate who otherwise contro…
Ala. Code § 27-27-5 Solicitation Permit - Application
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To apply for a solicitation permit, the person shall: (1) File with the commissioner a request therefor showing: a. Name, type and purpose of insurer, corporation, syndicate, association, firm, partnership, or organization formed or proposed to be formed; b. Names, addresses, bus…
Ala. Code § 27-27-50 Extinguishment and Nullification of Domestic Insurers’ Corporate
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Charter. (a) The corporate charter of any corporation formed under the laws of this state more than three years prior to January 1, 1972, for the purpose of becoming an insurer and which corporation within such three-year period has not actively engaged in business as a domestic …
Ala. Code § 27-27-51 Rules and Regulations as to Securities of Domestic Stock Insurers
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The commissioner shall have the power, and it shall be his duty, to prescribe, publish, and disseminate to all domestic stock insurance companies uniform written rules and regulations of proxies, consents, and authorizations, including the solicitation thereof, and information ne…
Ala. Code § 27-27-52 Insider Trading of Domestic Stock Insurer Equity Securities - Short Title
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Sections 27-27-52 through 27-27-60 shall be known as the “Insider Trading of Domestic Stock Insurer Equity Securities Law.” History: (Acts 1971, No. 407, p. 707, §548.)
Ala. Code § 27-27-53 Insider Trading of Domestic Stock Insurer Equity Securities - Ownership
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Statements. Every person who is, directly or indirectly, the beneficial owner of more than 10 percent of any class of any equity security of a domestic stock insurance company or who is a director or an officer of such company shall file in the Office of the Commissioner of Insur…