Title 27 — Title 27

(a) In addition to the deposit required under Sections 27-3-11 or 27-3-14, a surety insurer shall deposit and maintain deposited with the Treasurer of this state in trust for the benefit of holders, resident in this state, of the obligations of the insurer cash or securities elig…

(a) For authority to transact such insurance in this state, a foreign title insurer shall have and maintain on deposit in this state for the better protection of its guaranty holders and creditors, resident in this state, under its contracts of title insurance, cash and securitie…

(a) An alien insurer shall not have authority to transact insurance in this state unless it has and maintains within the United States as deposits with trustees, public depositaries or in trust institutions approved by the commissioner under Section 27-3-15 assets available for d…

(a) In order to comply with the requirements of Section 27-3-14, an alien insurer shall appoint citizens of the United States of America or public depositaries or trust institutions located in the United States, all as approved by the commissioner, as trustee, or trustees, to hol…

Aggregations of individuals as underwriters, whether domestic, foreign, or alien, assuming insurance risks upon the plan known as “Lloyd’s,” whereby each underwriter is liable for the proportionate part assumed by him of the whole amount so insured by a policy issued by such unde…

To apply for an original certificate of authority an insurer shall file with the commissioner its application therefor, accompanied by the applicable fees as specified in Section 27-4-2, showing its name, location of its home office or, if an alien insurer, principal office in th…

of Certificate. (a) If upon completion of the application for a certificate of authority the commissioner finds that the insurer has met the requirements for and is entitled thereto under this title, he shall issue to the insurer a proper certificate of authority; if he does not …

(a) Certificates of authority issued or renewed under this title shall continue in force as long as the insurer is entitled thereto under this title and until suspended, revoked or terminated at the request of the insurer; subject, however, to continuance of the certificate by th…

A certificate of authority shall not be required of an insurer with respect to the following: (1) Transactions relative to its policies lawfully written in this state or liquidation of assets and liabilities of the insurer, other than collection of new premiums, all as resulting …

and Hearing. (a) The commissioner shall suspend or revoke an insurer’s certificate of authority: (1) If such action is required by any provision of this title; (2) If the insurer no longer meets the requirements for the authority originally granted on account of deficiency of ass…

and Hearing. (a) The commissioner may, in his discretion, suspend or revoke an insurer’s certificate of authority if, after a hearing thereon, he finds that the insurer has willfully violated any material provision of this title other than those for which suspension or revocation…

(a) Suspension or revocation of an insurer’s certificate of authority shall be by the commissioner’s order given to the insurer as provided by Section 27-2-18. The commissioner shall promptly also give notice of such suspension or revocation to the insurer’s agents in this state …

Obligations of Insurer During Suspension; Reinstatement. (a) Suspension of an insurer’s certificate of authority shall be for such period as is fixed by the commissioner in the order of suspension, but not to exceed one year from the date of suspension, unless the commissioner sh…

Agent. (a) Each insurer applying for a certificate of authority to transact business in this state shall file with the commissioner an appointment of the commissioner and his successors in office, on a form as furnished by the commissioner, as its attorney upon whom may be served…

(a) Service of process upon the commissioner as process agent of the insurer under Section 27-3-24 shall be made by the proper officer of Montgomery County by serving copies in triplicate of the process upon the commissioner or upon his assistant, deputy or other person in charge…

Request. (a) Each authorized insurer shall, annually on or before March 1, or within such extension of time not exceeding 30 days after March 1 as the commissioner for good cause shown may grant as to a particular insurer, file with the commissioner a full and true statement of i…

Exemption. (a) Every property or casualty insurer doing business in this state, unless otherwise exempted by law or by the domiciliary commissioner, shall annually submit the opinion of an appointed actuary entitled Statement of Actuarial Opinion. This opinion shall be filed in a…

(a) No insurer shall, in this state, directly or indirectly, accept applications for insurance, negotiate for or issue any policy or contract of insurance or assume direct liability as to a subject of insurance resident, located, or to be performed in this state unless through in…

Exceptions. Repealed by Act 2001-702, p. 1509, §16, effective January 1, 2002. History: (Acts 1935, No. 194, p. 256; Acts 1971, No. 407, p. 707, §§73, 74; Acts 1988, No. 88-123, p. 159, §1.)

Requirements. (a) The purpose of this section is to aid in the protection of insurers formed under the laws of Alabama and transacting insurance in other states or countries against discriminatory or onerous requirements under the laws of such states or countries or the administr…

Securities Secured Thereby. A foreign insurer may transact business in this state without certificate of authority for the purpose, and to the extent only, of investing its funds in real estate located in this state, or in securities secured thereby, by complying with the require…

License Eligibility; Authority and Jurisdiction of State; Continuation of Corporate Existence and Date of Incorporation. Any insurer which is organized under the laws of any other state and is admitted to do business in this state for the purpose of writing insurance may become a…

Admitted as Foreign Insurer If so Qualified; Approval of Commissioner of Insurance; Effect of Interests of Policyholders. Any domestic insurer may, upon the approval of the Commissioner of Insurance, transfer its domicile to any other state in which it is admitted to transact the…

Admitted as Foreign Insurer If so Qualified; Approval of Commissioner of Insurance; Effect of Interests of Policyholders; Effect Upon Certificates of Authority, Agents, Etc., Including Outstanding Policies; Insurer’s Duty to File New Policy Forms; Insurer’s Duty to Notify Commiss…

The Commissioner of Insurance of this state may promulgate necessary rules and regulations to carry out the purposes of Sections 27-3-30 through 27-3-32. History: (Acts 1991, No. 91-446, p. 816, §4.)

To qualify for and hold authority to transact insurance in this state, an insurer must be otherwise in compliance with this title and with its charter powers and must be an incorporated stock insurer or an incorporated mutual insurer or a reciprocal insurer, all of the same gener…

(a) No insurer shall be authorized to transact insurance which has or uses a name so similar to that of another insurer already so authorized as likely to mislead the public. (b) No life insurer shall be so authorized which has or uses a name deceptively similar to that of anothe…

Restrictions. An insurer which otherwise qualifies therefor may be authorized to transact any one kind or combination of kinds of insurance as defined in Chapter 5 of this title, except: (1) A life insurer may grant annuities and shall be authorized to transact in addition only d…

Closing or Settlement Protection. (a) Notwithstanding the provisions of subdivision (3) of Section 27-3-6, a title insurer may issue closing or settlement protection to a person who is a party to a transaction in which a title insurance policy will be issued. (b) The form of clos…

Minimum Paid-In Capital Stock and Surplus. (a) To qualify for authority to transact any one kind of insurance, as defined in Chapter 5 of this title, or combination of kinds of insurance as shown below, an insurer applying for its original certificate of authority in this state a…

Special Surplus. (a) In addition to the minimum paid-in capital stock (stock insurers) or minimum surplus (mutual and reciprocal insurers) required by Section 27-3-7, special surplus shall be possessed by insurers hereafter applying for original certificates of authority in this …

Company. The minimum capital required to form and organize a new domestic stock life insurance company shall be $1,000,000.00, and in addition thereto the minimum surplus to form such a company shall be $1,000,000.00. History: (Acts 1973, No. 643, p. 953.)

This chapter may be cited as the “Health Care Service Utilization Review Act.” History: (Acts 1994, 1st Ex. Sess., No. 94-786, p. 80, §1.)

The purposes of this chapter are to: (1) Promote the delivery of quality health care in a cost-effective manner. (2) Assure that utilization review agents adhere to reasonable standards for conducting utilization review. (3) Foster greater coordination and cooperation between hea…

As used in this chapter, the following words and phrases shall have the following meanings: (1) DEPARTMENT. The Alabama Department of Public Health. (2) ENROLLEE. An individual who has contracted for or who participates in coverage under an insurance policy, a health maintenance …

(a) Utilization review agents shall adhere to the minimum standards set forth in Section 27-3A-5. (b) On or after July 1, 1994, a utilization review agent shall not conduct a utilization review in this state unless the agent has certified to the department in writing that the age…

(a) Except as provided in subsection (b), all utilization review agents shall meet the following minimum standards: (1) Notification of a determination by the utilization review agent shall be mailed or otherwise communicated to the provider of record or the enrollee or other app…

(a) Whenever the department has reason to believe that a utilization review agent subject to this chapter has been or is engaged in conduct that violates this chapter, the department shall notify the utilization review agent of the alleged violation. The agent shall respond to th…

(a) Where any taxpayer in the payment of taxes or payments of licenses which are paid directly to the commissioner and where by a mistake of fact or law has paid an amount in excess of the amount due or has made an erroneous payment, the Comptroller is authorized to draw his warr…

(a) The Commissioner of Insurance shall collect in advance fees, licenses, and miscellaneous charges as follows: (1) Certificate of authority: a. Initial application for original certificate of authority, including the filing with the commissioner of all documents incidental ther…

Educational and Scientific Institutions. Annuity considerations and premiums received by a life insurer licensed to transact business in this state and which is organized and operated without profit to any private shareholder or individual and exclusively for the purpose of aidin…

This chapter shall be known and may be cited as “The Insurance Premium Tax Reform Act of 1993.” History: (Acts 1993, No. 93-679, p. 1291, §1.)

For the purposes of this chapter only, the following terms, unless the context clearly indicates otherwise, shall have the meanings: (1) ANNUITY CONSIDERATIONS. All sums received as consideration for annuity contracts. (2) COMMISSIONER. The Commissioner of Insurance of the State …

(a) Subject to the exceptions and exemptions hereinafter set forth, for the year beginning on January 1, 1995, and for each year thereafter, every insurer shall pay to the commissioner a premium tax equal to the percentage, as set out in this subsection, of the premiums received …

Every insurer failing to comply with the requirements of this chapter shall be subject to a penalty of not less than $1,000 nor exceeding $10,000, recoverable in an action brought by the Attorney General for the commissioner. Upon any violation, the commissioner may suspend or re…

The premium tax levied by this chapter is exclusive and shall be in lieu of all other and additional taxes and licenses of the state or county imposed on, based upon or measured by premiums received by the insurer for business done in this state. No license or privilege tax shall…

Nothing in this chapter shall be construed to repeal any existing laws or statutes which exempt or exclude insurers from the payment of fees, taxes, or licenses other than the tax imposed by this chapter. Without limiting the generality of the preceding sentence, insurers upon wh…

Mutual aid associations shall be subject to the provisions of this chapter and subject to the annual premium tax to be paid by insurers on insurance premiums. History: (Acts 1993, No. 93-679, p. 1291, §10.)

Chapter. (a) It is intended that certain insurance coverages may come within the definitions of two or more kinds of insurance as defined in this chapter, and the inclusion of such coverage within one definition shall not exclude it as to any other kind of insurance within the de…

“Title insurance” is insurance of owners of property, or others having an interest therein or liens or encumbrances thereon against loss by encumbrance, or defective titles, or invalidity or adverse claim to title. History: (Acts 1971, No. 407, p. 707, §94.)