Title 27 — Title 27

Except as provided in Section 27-41-39, this chapter shall apply to all domestic insurers and health maintenance organizations. History: (Acts 1977, No. 408, p. 530, §1; Acts 1993, No. 93-675, p. 1240, §13.)

Municipalities, Etc., to Provide Funds for Public Projects, Etc. An insurer may invest in bonds and other evidences of indebtedness which are obligations of any state, county, city, town, village, municipality, district, or other political subdivision of any state or of any instr…

Authorities. An insurer may invest in bonds, debentures, or other evidences of indebtedness of local public housing authorities existing under the laws of the United States or of any state if such obligations are: (1) Secured by a pledge of annual contributions unconditionally pa…

Federal Agencies. An insurer may invest in obligations issued or guaranteed by the following agencies of the United States of America: (1) Commodity Credit Corporation; (2) Federal intermediate credit banks; (3) Federal land banks; (4) Central bank for cooperatives; (5) Federal h…

Government, Provinces Thereof, Etc. An insurer may invest in bonds or other evidences of indebtedness issued, assumed, or guaranteed by Canada or any province thereof or issued by any municipality in Canada having a population of 25,000 or more. History: (Acts 1977, No. 408, p. 5…

for Reconstruction and Development and National Mortgage Association. (a) An insurer may invest in obligations issued, assumed, or guaranteed by the International Bank for Reconstruction and Development. (b) An insurer may invest in the obligations of the Federal National Mortgag…

Institutions Generally. An insurer may invest in secured and unsecured obligations bearing interest at a fixed rate, with mandatory principal and interest being due at specified times, of any solvent institution engaged in any lawful business and existing under the laws of the Un…

American Corporations. An insurer may invest in the preferred or guaranteed stocks or shares of any solvent corporation engaged in any lawful business and existing under the laws of the United States or any state thereof if the prior obligations of the issuing company or the guar…

of American and Canadian Corporations. (a) An insurer may invest in common stocks or shares of any solvent corporation engaged in any lawful business and existing under the laws of the United States or any state thereof or of Canada or any province thereof if the prior obligation…

An insurer may invest in the stocks of other solvent insurers formed under the laws of the United States or any state thereof, provided that the total amount of the insurer’s investments in excess of the net asset value of the stock acquired shall not at any time exceed the great…

Notes, Etc., Secured by Leases, Agreements, Etc., Relating to Manufacturing, Mining, Etc., Machinery, Etc. (a) An insurer may invest in equipment trust obligations or certificates which are adequately secured evidencing an interest in transportation equipment wholly or in part wi…

As used in this chapter, the following terms shall have the respective meanings herein set forth, unless the context shall otherwise require: (1) ALABAMA INSURANCE CODE. Title 27 of this code. (2) INSURER. The term shall have the meaning ascribed in Section 27-1-2 and shall inclu…

Obligations of Railroads and Other Common Carriers. An insurer may invest in: (1) Leased line obligations of railroads where all of the fixed interest-bearing obligations of the lessee meet the standards prescribed in Section 27-41-15. (2) Terminal obligations of railroads and ot…

Societies. An insurer may invest in secured and unsecured obligations of religious institutions or societies located within the United States if the institution or society has not defaulted in payment of principal or interest on any of its obligations during the five years preced…

Gas, or Condensate Properties, Etc. An insurer may invest in adequately secured loans secured by first liens on interests in oil, gas, or condensate properties or leaseholds in the United States and Canada on which there are fully completed commercially producing wells. History: …

Receivers of Institutions Being Administered Under Court Direction. An insurer may invest in certificates, notes, or other obligations issued by trustees or receivers of any institution created or existing under the laws of the United States or of any state thereof which, or the …

Pledges or Assignments of Life Insurance Policies. An insurer may invest in loans with a maturity not in excess of five years from the date thereof which are secured by pledge of securities eligible for investment under this chapter or by the pledge or assignment of life insuranc…

A life insurer may lend to its policyholder upon the security of the policy any sum not exceeding the cash surrender value of the policy or may lend against pledge or assignment of any of its supplementary contracts or other contracts or obligations so long as the loan is adequat…

Loan Associations. An insurer may invest in shares or savings accounts of savings and loan associations insured by the Federal Savings and Loan Insurance Corporation. History: (Acts 1977, No. 408, p. 530, §26.)

(a) An insurer may invest in securities or other investments (1) issued in, (2) located in, (3) denominated in the currency of, (4) whose ultimate payment amounts of principal or interest are subject to fluctuations in the currency of, or (5) whose obligors are domiciled in count…

States Under Federal Law or Secured by Mortgages on Ships, Barges, Etc. An insurer may invest in bonds, debentures, notes, or other evidences of indebtedness which are: (1) Guaranteed by the United States of America, represented by the Secretary of Commerce acting pursuant to Tit…

of Trust on Real Property, Etc., Generally. An insurer may invest in: (1) Bonds, notes, or other evidences of indebtedness which are secured by a first mortgage lien or deed of trust upon unencumbered improved real property located in the United States or Canada, including leaseh…

Investments and Obligations for Investments Deemed Eligible Investments Under Chapter Generally; Filing with Commissioner of Certified Statements as to Investments or Obligations for Investments Not Deemed Eligible Under Chapter; Assets or Funds to Which Investment Limitations Ba…

Leases on Real Property. An insurer may invest in loans, notes, bonds, or other evidences of indebtedness of any person up to the fair value of real property securing said indebtedness, upon compliance with the following conditions and provisions: (1) The indebtedness must be sec…

An insurer may invest in electronic and mechanical machines constituting a data processing and accounting system if the cost of such system is not less than $10,000.00 and cost for such machines is amortized in full over a period not to exceed 10 calendar years. History: (Acts 19…

Securing Evidences of Indebtedness Held by Insurers and Subject to Mortgage Foreclosure or Insolvency Proceedings. (a) If real property securing any evidence of indebtedness held by an insurer is used for agricultural purposes and a proceeding to foreclose the mortgage or an inso…

Mortgages. In connection with mortgage loans made under subdivisions (2) and (3) of Section 27-41-29, an insurer may loan on the value of personal property items listed in the Department of Housing and Urban Development Commitment for Insurance or the Veterans Administration Cert…

(a)(1) An insurer may acquire, invest in, own, maintain, alter, furnish, and improve the following real estate: a. Land and buildings used for home office and branch office purposes, together with such other real estate as is required for the convenient transaction of its busines…

Facilities. (a) An insurer may invest in properties and facilities, and any interest and rights in such properties and facilities, for the development and production of fossil or synthetic fuel or other minerals, whether or not the extraction would deplete the surface of such pro…

(a) An insurer may make investments not otherwise expressly permitted by this chapter which may be counted as admitted assets, except as expressly prohibited under Section 27-41-36, provided that: (1) The aggregate of all such investments shall not exceed 10 percent of the insure…

Property. (a) After January 1, 1978, an insurer shall not invest in nor lend its funds upon the security of any note or other evidence of indebtedness of any director, officer, or controlling stockholder of the insurer, except as to policy loans authorized under Section 27-41-25 …

(a) The funds of a mutual aid association shall be in cash or shall be invested as provided in Sections 27-41-3 through 27-41-36 and Section 27-41-38 as applicable to life insurers, except that: (1) Funds of the association to the extent of its reserve liabilities resulting from …

and Funeral Equipment. In addition to other investments permitted under this chapter, mutual aid associations may invest in funeral supply inventories, consisting of caskets, suits, robes, dresses, and embalming supplies, and funeral equipment, consisting of automobiles, hearses,…

(a) The investments of a foreign or alien insurer shall be as permitted by the laws of its domicile, but shall be of a quality and diversity substantially equivalent to that required of like domestic insurers under this chapter. (b)(1) Cash equivalents are exempt from the limitat…

No investment (other than in common stocks allowed under Section 27-41-17, in insurance stocks allowed under Section 27-41-18, in loans or investments allowed under Section 27-41-35, in real property allowed under Section 27-41-34, or in funeral supply inventories and equipment a…

Securities, Etc., Within Prescribed Period of Time. Any real estate, personal property, securities, or other investment lawfully acquired and held by an insurer shall not be allowed as an admitted asset of the insurer after expiration of the period for disposal thereof or any ext…

of Investments Partially Qualifying as Eligible Investments. Except as expressly prohibited in Section 27-41-36, an insurer may make any investment without limit as to kind, time, or amount, but only eligible investments shall be included or counted as admitted assets of the insu…

An insurer shall not make any investment or loan exceeding 10 percent of the admitted assets of the insurer, other than loans on policies or annuity contracts, unless authorized, approved, or ratified by the board of directors of the insurer or by the committee or person as the b…

(a) An insurer shall not have at any one time any single investment or combination of investments in or loans upon the security of the obligations, property, or securities of any one person aggregating in cost to the insurer in excess of the greater of 10 percent of such insurer’…

An insurer may invest in bonds, notes, warrants, debentures, and other evidences of indebtedness which are direct obligations of the United States of America for which the full faith and credit of the United States of America is pledged for the payment of principal and interest. …

An insurer may invest in loans guaranteed as to principal and interest by the United States of America or by any agency or instrumentality of the United States of America to the extent of such guaranty. History: (Acts 1977, No. 408, p. 530, §8.)

Municipalities, School Districts, Etc., Therein Generally. An insurer may invest in bonds or other evidences of indebtedness which are general obligations of or are adequately secured as to both principal and interest by irrevocable pledge of specific revenues by this state or an…