Title 27

(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…

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 or deficien…

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 appointed supervisors: (1) Dispose of, convey, o…

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…

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 supervision order or peri…

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. (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 …

The Commissioner of Insurance, in conformance with Section 36-26-10, may employ personnel to operate the Pharmacy Benefits Manager Division within the Department of Insurance, including two employees who are in the exempt service and not subject to the state Merit System. These p…

(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…

(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…

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. (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…

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…

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, however, nothin…

The Legislature finds and declares the following: (1) Alabama is susceptible to various natural and manmade disaster events, posing threats to the safety of its citizens, integrity of its infrastructure, prospects for its economic growth, and maintenance and protection of its uni…

(a) Commencing upon the Governor’s rescission of Executive Order No. 736, the Alabama Resilience Council shall be created as an appointed advisory group within the executive branch of state government for the purpose of coordinating resilience-related activities of state governme…

The duties of the Alabama Resilience Council shall be as follows: (1) Develop strategies to guide statewide resilience efforts by prioritizing objectives reflecting pressing resilience challenges. To this end, the council shall regularly convene government and private-sector stak…

(a) The council shall be led by a chair, vice chair, co-chairs, or other leadership positions from within the voting membership on the council. Leadership positions shall be appointed by the Governor and shall serve at the pleasure of the Governor. (b) The council shall develop, …

(a) The Commissioner of Insurance shall designate a Chief Resilience Officer within the Department of Insurance to coordinate the activities of the council established pursuant to Section 27-2-81 and lead the development, maintenance, and implementation of the statewide resilienc…

(a) The Chief Resilience Officer shall develop, maintain, and implement a statewide resilience plan, with the general oversight and input from the council. The plan shall include the following components: (1) Statewide Comprehensive Risk and Vulnerability Assessment. The plan sha…

There is created a fund in the State Treasury to be designated the Alabama Resilience Council Fund to be used to support the activities of the Alabama Resilience Council and the Chief Resilience Officer. The Chief Resilience Officer may receive and deposit into or disburse from t…

(a) There is created within the Department of Insurance the Office of Risk and Resilience. The office shall work to develop and implement programs that address risk and resilience issues facing the state and, therefore, promote a healthy insurance market. The senior director of t…

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

(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 of assets …

(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 …

(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 nonrenewal, cancellat…

This chapter shall be known as the Alabama Risk-Based Capital (RBC) for Insurers Act. (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…

(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 domestic insurer under this cha…

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. (Acts 1996, No.…

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 dome…

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…

(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 information as is required by the RBC instructions. In addi…