Title 27 — Title 27

(a) The board of directors of the association shall consist of not less than five nor more than nine persons serving terms as established in the plan of operation. The members of the board shall be selected by member insurers subject to the approval of the commissioner. Vacancies…

(a) The association shall: (1)a. Be obligated to pay covered claims existing prior to the order of liquidation arising within 30 days after the order of liquidation, or before the policy expiration date if less than 30 days after the order of liquidation, or before the insured re…

(a) Notwithstanding the one percent maximum assessment set forth in subdivision (3) of subsection (a) of Section 27-42-8, no member insurer may be assessed in any one year for the workers’ compensation account an amount greater than two percent of that member insurer’s net direct…

(a) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall become effective upon …

This chapter shall be known and may be cited as the “Legal Expense Insurance Act.” History: (Acts 1981, No. 81-719, p. 1214, §1.)

Issuance of Policies and Certificates. (a) Legal expense insurance may be written as individual, group, blanket, or franchise insurance. Each contractual obligation for legal expense insurance must be evidenced by a policy. Each person insured under a group policy must be issued …

(a) No policy of legal expense insurance may be issued in this state unless the premium rates for the insurance have been filed with and approved by the commissioner. (b) Premium rates must be established and justified in accordance with generally accepted insurance principles, i…

(a) Contracts made between the insurer and participating attorneys, management contracts and contracts with other providers of services by the legal expense insurance policy must be filed with and approved by the commissioner. (b) Insurers must annually report to the commissioner…

Applicability of General Insurance Laws to Legal Service Insurance Corporations. (a) A legal service insurance corporation will pay the prescribed fees and taxes required of a domestic casualty insurer. (b) The following provisions of the insurance laws of this state apply to leg…

Persons representing or aiding a legal service insurance corporation in the solicitation of legal expense insurance contracts in this state and the legal service insurance corporation with respect thereto shall be subject to Chapters 7 and 8A of this title, except that legal serv…

Repealed by Act 2001-702, p. 1509, § 16, effective January 1, 2002. History: (Acts 1981, No. 81-719, p. 1214, §1; Acts 1984, No. 84-243, p. 374, §1.)

Registration of Contracting Sales Agents. Repealed by Act 2001-702, p. 1509, § 16, effective January 1, 2002. History: (Acts 1981, No. 81-719, p. 1214, §1.)

Registration of Contracting Sales Agents. Repealed by Act 2001-702, p. 1509, § 16, effective January 1, 2002. History: (Acts 1981, No. 81-719, p. 1214, §1.)

Contracting Sales Agent. Repealed by Act 2001-702, p. 1509, § 16, effective January 1, 2002. History: (Acts 1981, No. 81-719, p. 1214, §1.)

Etc., of Registration. Repealed by Act 2001-702, p. 1509, § 16, effective January 1, 2002. History: (Acts 1981, No. 81-719, p. 1214, §1.)

The purpose of this chapter is to authorize state certification and regulation of organizations which provide programs for the payment of the costs of legal services. History: (Acts 1981, No. 81-719, p. 1214, §1.)

Agents to Be Held in Trust; Accounting for and Disposition of Funds by Agents; Appropriation of Funds, Etc., by Agent. Repealed by Act 2001-702, p. 1509, § 16, effective January 1, 2002. History: (Acts 1981, No. 81-719, p. 1214, §1.)

All moneys received from licenses and fees shall be deposited to the credit of the Examiners’ Revolving Fund of the Department of Insurance. History: (Acts 1981, No. 81-719, p. 1214, §1.)

The commissioner shall devise and promulgate rules and regulations, not inconsistent with the provisions of this chapter, as he deems advisable for effectuating its orderly administration. History: (Acts 1981, No. 81-719, p. 1214, §1.)

Nothing contained in this chapter shall be construed to regulate the practice of law or limit the powers or authority of the Supreme Court of Alabama or State Bar of Alabama in the regulation of the conduct of attorneys. History: (Acts 1981, No. 81-719, p. 1214, §1.)

As used in this chapter, the following terms shall have the following meanings, respectively, unless the context requires otherwise: (1) DEPARTMENT. The Department of Insurance; (2) COMMISSIONER. The Commissioner of Insurance of this state; (3) INSURER. Any person authorized to d…

The insurance laws of this state, including this chapter, do not apply to: (1) Retainer contracts made by attorneys-at-law with individual clients with fees based on estimates of the nature and amount of services to be provided to the specific client and similar contracts made wi…

(a) No person or organization may do a prepaid legal expense insurance business in this state unless authorized to do so by the commissioner. (b) This section does not apply to organizations exempt pursuant to Section 27-43- 4. History: (Acts 1981, No. 81-719, p. 1214, §1.)

(a) Any domestic, foreign, or alien insurer authorized to transact casualty insurance or life, accident and sickness insurance in this state may transact legal expense insurance in this state. (b) Legal service insurance corporations possessing a valid certificate of authority ma…

Generally. (a) Any number of corporate or adult natural persons may organize a legal service insurance corporation under this section. (b) The articles of incorporation shall conform to the requirements applicable to corporations, except that: (1) The name of the corporation shal…

Issuance of Certificate. (a) The incorporators shall file with the commissioner an application for a certificate of authority to do business upon a form to be furnished by the department, which shall include or have attached the following: (1) The names and, for the preceding 10 …

(a) To assure the faithful performance of its obligations in the event of insolvency, each corporation authorized under Section 27-43-8 shall, through the commissioner, deposit and maintain with the Treasurer of the State securities of the type eligible for deposit by insurers un…

This chapter shall be known and may be cited as the “Alabama Life and Disability Insurance Guaranty Association Act.” History: (Acts 1982, No. 82-561, p. 922, §1.)

Rules in Absence of Plan. (a)(1) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto…

In addition to the duties and powers enumerated elsewhere in this chapter: (1) The commissioner shall: a. Upon request of the board of directors, provide the association with a statement of the premiums in the appropriate states for each member insurer. b. When an impairment is d…

Prevention of Insolvencies or Impairment. To aid in the detection and prevention of insurer insolvencies or impairment: (1) It shall be the duty of the commissioner: a. To notify the commissioners of those states, territories of the United States and the District of Columbia wher…

(a) A member insurer may offset against its premium tax liability to this state an assessment described in Section 27-44-9(h) to the extent of 20 percent of the amount of such assessment for each of the five calendar years following the year in which such assessment was paid. (b)…

Association Deemed Creditor of Impaired or Insolvent Insurer; Judicial Distribution of Ownership Rights of Insolvent Insurer; Recovery by Receiver of Certain Distributions from Controlling Affiliates. (a) Nothing in this chapter shall be construed to reduce the liability for unpa…

The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit to the commissioner, not later than May 1 of each year, a financial report for the preceding calendar year in a form approved by the commissioner and a report o…

The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied on real or personal property. History: (Acts 1982, No. 82-561, p. 922, §16.)

There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer or its agents or employees, the association or its agents or employees, members of the board of directors, or the commissioner or his representatives, for any ac…

All proceedings in which the insolvent insurer is a party in any court in this state shall be stayed 180 days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the association on any matters germane to its powers or d…

(a) The purpose of this chapter is to protect, subject to certain limitations, the persons specified in Section 27-44-3(a) against failure in the performance of contractual obligations, under life and disability insurance policies and annuity contracts specified in Section 27-44-…

Preferred Creditor Status. Upon the issuance of a proper court order placing a domestic insurer in receivership or placing a foreign insurer in ancillary receivership for rehabilitation or liquidation, all policyholders, beneficiaries, and insureds of such insolvent insurer, with…

Insolvent Insurer; Application to Court; Contents of Proposal; Notice. (a) Within 120 days of a final determination of insolvency of an insurance company by a court of competent jurisdiction the receiver shall make application to the said court for approval of a proposal to disbu…

(a) This chapter shall provide coverage for the policies and contracts specified in subsection (b) as follows: (1) To persons who, regardless of where they reside (except for non-resident certificate holders under group policies or contracts), are the beneficiaries, assignees, or…

This chapter shall be liberally construed to effect the purpose under Section 27-44- 2 which shall constitute an aid and guide to interpretation. History: (Acts 1982, No. 82-561, p. 922, §4.)

As used in this chapter, the following terms shall have the following meanings, respectively, unless the context clearly indicates otherwise: (1) ACCOUNT. Either of the three accounts created under Section 27-44-6. (2) ASSOCIATION. The Alabama Life and Disability Insurance Guaran…

(a) There is created a nonprofit unincorporated legal entity to be known as the Alabama Life and Disability Insurance Guaranty Association. All member insurers shall be and remain members of the association as a condition of their authority to transact insurance in this state. Th…

Meeting; Reimbursement for Expenses. (a) The board of directors of the association shall consist of not less than five nor more than nine member insurers serving terms as established in the plan of operation. At all times, at least one member of the board shall be a domestic insu…

(a) If a member insurer is an impaired insurer, the association may, in its discretion and subject to any conditions imposed by the association that do not impair the contractual obligations of the impaired insurer, and that are approved by the commissioner: (1) Guarantee or rein…

(a) For the purpose of providing the funds necessary to carry out the powers and duties of the association, the board of directors shall assess the member insurers, separately for each account, at such time and for such amounts as the board finds necessary. Assessments shall be d…

This article shall apply to health insurance and employee benefit plans providing for pharmaceutical services, including without limitation, prescription drugs. History: (Acts 1988, No. 88-379, p. 565, §1.)

As used in this article, the following terms shall have the respective meanings herein set forth, unless the context shall otherwise require: (1) ALABAMA INSURANCE CODE. Title 27 of the Code of Alabama 1975. (2) INSURER. Such term shall have the meaning ascribed in Section 27-1-2…

Obtained. No insurance company, health maintenance organization (HMO), employer or organization offering a pharmaceutical prescription program to their employees or members in Alabama, shall enter into an agreement for services until they have obtained written verification that t…