Title 27 — Title 27

Compelling Testimony or Production of Documents, Etc.; Immunity from Prosecution. (a) If any individual asks to be excused from attending or testifying or from producing any books, papers, records, contracts, correspondence, or other documents in connection with any examination, …

(a) The commissioner may hold hearings for any purpose within the scope of this title deemed by him to be necessary. (b) The commissioner shall hold a hearing if required by any provision, or upon written demand therefor by a person aggrieved by any act, threatened act or failure…

(a)(1) Except where a longer period of notice is provided by other provisions of this title relative to particular matters, not less than 10 days in advance the commissioner shall give notice of the time and place of the hearing, stating the matters to be considered. If the perso…

Before entering upon the duties of his office the commissioner shall take and subscribe to the oath prescribed by Article 16, Section 279 of the State Constitution and give bond in favor of the State of Alabama in the penal sum of $50,000.00. The surety on the bond shall be a cor…

(a) A hearing may be held in the department at Montgomery, Alabama, or at any other place in this state more convenient to parties and witnesses, as the commissioner determines. The commissioner or his deputy or examiner shall preside at the hearing and shall expedite the hearing…

(a) In the conduct of hearings under this title and making his order thereon, the commissioner shall act in a quasi-judicial capacity. (b) Within 30 days after termination of the hearing, or of any rehearing thereof or reargument thereon, or within such other period as may be spe…

(a) An appeal from the commissioner shall be taken only from an order on hearing, or as to a matter on which the commissioner has refused or failed to hold a hearing after demand therefor under Section 27-2-28 or as to a matter as to which the commissioner has refused or failed t…

Issuance. The Commissioner of Insurance is empowered to place an insurance company under supervision, after a hearing thereon, by appropriate order, for the following reasons: (1) When an insurance company has been notified under the provisions of Section 27-27-41 of impairment o…

Prohibited During Period of Supervision. During the period of supervision the commissioner may appoint a supervisor and may provide that the insurer may not do the following things during the period of supervision without the prior approval of the commissioner or his duly appoint…

The commissioner shall withdraw the supervision order immediately upon determination that the reasons for the supervision set forth in Section 27-2-33 have been corrected or no longer exist, but in no event shall the supervision order last longer than 180 days without another not…

Delinquency Proceedings. The provisions of Chapter 32 of this title concerning rehabilitation and liquidation shall not be stayed during the period of supervision and the commencement of delinquency proceedings under Section 27-32-4, may commence either before, during or after a …

The order of supervision issuing after the hearing shall follow the provisions of Section 27-2-18, and may be appealed in the same manner as orders falling under the provisions of Section 27-2-32. History: (Acts 1975, No. 217, p. 742, §5; Acts 1977, No. 409, p. 547, §6.)

No order of supervision shall be issued by the commissioner until the insurance company has been given notice of the commissioner’s intentions to place the company under supervision, the appropriate reasons for supervision set out in Section 27-2-33 and a hearing held thereon. Th…

(a) There is created a fund in the State Treasury designated the Insurance Department Fund to be used for the operation of the Department of Insurance. Receipts deposited into this fund shall be disbursed only by warrants of the state Comptroller drawn upon the State Treasury on …

(a) The commissioner shall receive such annual salary as fixed by the Governor in the same manner as the salaries of other appointive department heads. Such salary shall be payable in the same manner as other state employees are paid. (b) The commissioner shall devote his entire …

(a) The Commissioner of Insurance shall establish and support the Center for Risk and Insurance Research, or its successor, connected with a state university in this state to carry out research, education, and outreach regarding risk management and insurance issues. (b) There is …

(a) The commissioner shall have an official seal as heretofore provided him by the State of Alabama. (b) All certificates executed by the commissioner, other than licenses of agents, brokers, solicitors, adjusters, and similar licenses, shall bear his seal. (c) Every such certifi…

There is hereby established within the Department of Insurance a Receivership Division to be managed and headed by a chief of said division. The chief of said Receivership Division shall be appointed by the Commissioner of Insurance and shall serve at his pleasure. The compensati…

The Chief of the Receivership Division shall make bond payable to the State of Alabama in the amount of $75,000.00, conditioned upon faithful performance of his duties, the premiums of which shall be borne by the state. In addition each receivership court may require adequate bon…

The Commissioner of Insurance shall furnish offices, equipment, operating expenses, and necessary personnel to maintain and operate the Receivership Division. The operating expenses of said division shall as far as practical be paid from the receiverships as administrative expens…

Upon the Commissioner of Insurance bringing delinquency proceedings against any insurer pursuant to this title, or other insurance laws of the state, the proper circuit court having jurisdiction thereof shall appoint the Chief of the Receivership Division as receiver of such impa…

The Commissioner of Insurance, as receiver in any existing receivership, may petition the proper receivership court to name as receiver thereof the Chief of the Receivership Division as provided for in this article, and upon making an accounting of the assets of such receivership…

Commissioner. All duties, rights, power, authority, and responsibility placed upon the Commissioner of Insurance by Sections 27-32-15 through 27-32-36, or by future law, as receiver of an insurer shall be vested in and assumed by the receiver appointed pursuant to this article, h…

(a) The commissioner’s offices shall be located at the state capitol. The commissioner may have a service office at Birmingham and in such other cities of this state as he may deem necessary. (b) The commissioner shall keep his offices open at all reasonable times for the transac…

The commissioner shall: (1) Organize, supervise, and administer the Department of Insurance so that the department will perform its lawful functions efficiently and effectively. (2) Enforce the provisions of this title. (3) Execute the duties imposed upon him or her by this title…

Increases. Subject to the discretion of the Commissioner of Insurance, any increase in automobile insurance rates sought in the future should come before a public rate hearing. History: (Act 99-430, p. 779, §5.)

(a) The commissioner may delegate to any deputy, assistant, examiner, or employee of the department the exercise or discharge in the commissioner’s name of any power, duty, or function, whether ministerial, discretionary, or of whatever character, vested by this title in the comm…

As early as consistent with full and accurate preparation, the commissioner shall annually make a report to the Governor of his official transactions during the preceding calendar year. He shall include in the report: (1) A statement of the receipts and expenditures of the depart…

This chapter shall be known as the Alabama Disclosure of Material Transactions Act. History: (Acts 1996, No. 96-784, p. 1426, §2.)

Treatment. (a) Every insurer domiciled in this state shall file a report with the commissioner disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements unless the acquisitions and dispositions…

(a) Materiality. No acquisitions or dispositions of assets need be reported, pursuant to Section 27-2A-2, if the acquisitions or dispositions are not material. For purposes of this section, a material acquisition (or the aggregate of any series of related acquisitions during any …

Agreements. (a) Materiality and scope. (1) No nonrenewals, cancellations, or revisions of ceded reinsurance agreements need be reported pursuant to Section 27-2A-2 if the nonrenewals, cancellations, or revisions are not material. For purposes of this section, a material nonrenewa…

This chapter shall be known as the Alabama Risk-Based Capital (RBC) for Insurers Act. History: (Acts 1996, No. 96-784, p. 1426, §6.)

(a) The provisions of this chapter are supplemental to any other provisions of the laws of this state, and shall not preclude or limit any other powers or duties of the commissioner under other laws, including, but not limited to, Chapter 32, and Section 27-2-33. (b) The commissi…

Liquidation of Property. (a) Any foreign insurer shall, upon the written request of the commissioner, submit to the commissioner an RBC report, as of the end of the calendar year just ended, the later of either: (1) The date an RBC report would be required to be filed by a domest…

There shall be no liability on the part of, and no cause of action shall arise against, the commissioner or the Department of Insurance, or its employees or agents for any action taken by them in the performance of their powers and duties pursuant to this chapter. History: (Acts …

All notices by the commissioner to an insurer that may result in regulatory action pursuant to this chapter, shall be effective upon dispatch if transmitted by registered or certified mail, or in the case of any other transmission shall be effective upon the insurer’s receipt of …

(a) For RBC reports required to be filed by life insurers with respect to 1996, the following requirements shall apply in lieu of the provisions of Sections 27-2B-4, 27- 2B-5, 27-2B-6, and 27-2B-7 as follows: (1) In the event of a company action level event, with respect to a dom…

For RBC reports required to be filed by health organizations and fraternal benefit societies with respect to 2015, the following requirements shall apply in lieu of the provisions of Sections 27-2B-4, 27-2B-5, 27-2B-6, and 27-2B-7: (1) In the event of a company action level event…

As used in this chapter, these terms shall have the following meanings: (1) ADJUSTED RBC REPORT. An RBC report which has been adjusted by the commissioner in accordance with subsection (e) of Section 27-2B-3. (2) CORRECTIVE ORDER. An order issued by the commissioner specifying co…

Excess Capital; Adjustment of Inaccurate Rbc Report. (a) Every domestic insurer shall, on or prior to each March 1 (the “filing date”), prepare and submit to the commissioner a report of its RBC levels as of the end of the calendar year just ended, in a form and containing inform…

or Revised Rbc Plan; Notification of Unsatisfactory Filing; Copies of Plans. (a) Company action level event means any of the following events: (1) The filing of an RBC report by an insurer which indicates any of the following: a. The insurer’s total adjusted capital is greater th…

of Corrective Actions; Retention of Consultants. (a) “Regulatory action level event” means, with respect to any insurer, any of the following events: (1) The filing of an RBC report by the insurer which indicates that the insurer’s total adjusted capital is greater than or equal …

(a) “Authorized control level event” means any of the following events: (1) The filing of an RBC report by the insurer which indicates that the insurer’s total adjusted capital is greater than or equal to its mandatory control level RBC but less than its authorized control level …

(a) “Mandatory control level event” means any of the following events: (1) The filing of an RBC report which indicates that the insurer’s total adjusted capital is less than its mandatory control level RBC. (2) Notification by the commissioner to the insurer of an adjusted RBC re…

(a) An insurer shall have the right to a departmental hearing, on the record, at which the insurer may challenge a determination or action by the commissioner upon any of the following: (1) Notification to an insurer by the commissioner of an adjusted RBC report. (2) Notification…

Publication of Rbc Levels Prohibited; Use of Reports and Plans by Commissioner. (a) All RBC reports, to the extent the information therein is not required to be set forth in a publicly available annual statement schedule, and RBC plans, including the results or report of any exam…

(a) No person shall act as an insurer and no insurer shall transact insurance in this state unless so authorized by a subsisting certificate of authority issued to it by the commissioner, except as to such transactions as are expressly otherwise provided for in this title. (b) No…

Domestic Stock Insurers. (a) For the purposes of this section, the following words and phrases shall have the following meanings: (1) DOMESTIC STOCK INSURER. A corporation incorporated under the laws of the State of Alabama with its capital divided into shares and owned by its st…

(a) The commissioner shall not issue or permit to exist a certificate of authority as to any insurer, other than an alien insurer, unless it has deposited and maintains deposited in trust with the Treasurer of this state cash or securities eligible under Section 27-6-3 and having…