Title 27 — Title 27

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(15).)

Any insurance company writing casualty insurance in the State of Alabama which sells medical liability insurance in other states must make medical liability insurance available to Alabama physicians, hospitals, and other health care providers as a condition of doing business in A…

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(21).)

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(16).)

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(22).)

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(10).)

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(23).)

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(11).)

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(12)-(14).)

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(24).)

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(28).)

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(29).)

All insurance carriers writing medical liability insurance policies shall be required to make annual reports of the number of claims and cost incurred to the commissioner on such forms and in such manner as the commissioner may require. History: (Acts 1975, No. 513, p. 1148, §9.)…

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(30).)

Directors of Fund. Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(31).)

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(26).)

Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1975, No. 513, p. 1148, §7(27).)

(a) Any insurance company which sells medical liability insurance to Alabama physicians or their professional corporations or professional associations, or to hospitals or other health care providers shall be required to report to the state licensing agency which issues the licen…

For the purposes of this chapter, the following terms shall have the meanings respectively ascribed to them by this section: (1) STOCK INSURER. An incorporated insurer with capital divided into shares and owned by its stockholders. (2) DOMESTIC MUTUAL INSURER. An incorporated ins…

(a) Except as to proposed domestic insurers which are subject to the requirements of Section 27-27-16, the commissioner shall not issue a solicitation permit until the applicant therefor has filed with him a corporate surety bond in the penalty of $15,000.00 in favor of the State…

Solicitation for sale of securities under a solicitation permit shall be made only by individuals licensed as securities salesmen pursuant to the provisions of the Alabama Securities Act. History: (Acts 1971, No. 407, p. 707, §507.)

(a) All funds received in Alabama pursuant to a solicitation permit, other than advance premiums for insurance which are subject to Section 27-27-18, shall, by the permit holder, be deposited and held in escrow in a bank or trust company located in this state under an agreement a…

Refund. The commissioner shall withdraw all funds held in escrow under Section 27-27-12, and refund to securities subscribers or purchasers all sums paid in on securities subscriptions, less that part of such sums paid in as has been allowed and used for promotion, sales, and org…

(a) No insurer, or insurance holding corporation, or stock corporation for financing operations of a mutual insurer, or attorney-in-fact corporation, or a reciprocal insurer, or any other type of organization existing for the same purpose, after: (1) It has received a certificate…

(a) When newly organized, a domestic mutual insurer may be authorized to transact any one of the kinds of insurance listed in the schedule contained in subsection (b) of this section. (b) When applying for an original certificate of authority, the insurer must be otherwise qualif…

(a) Before soliciting any applications for insurance required under Section 27-27- 15, as qualification for the original certificate of authority, the incorporators of the proposed mutual insurer shall file with the commissioner a corporate surety bond in the penalty of $15,000.0…

Insurance. (a) Upon receipt of the commissioner’s approval of the bond or deposit as provided in Section 27-27-16 the directors and officers of the proposed domestic mutual insurer may commence solicitation of such requisite applications for insurance policies as they may accept …

Qualifying Applications. (a) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company in this state under a written trust agreement approved by the commissioner …

If the proposed domestic mutual insurer fails to complete its organization and to secure its original certificate of authority within one year from, and after, date of its certificate of incorporation, the corporation shall transact no further business, and the commissioner shall…

This chapter shall apply only to domestic stock insurers and domestic mutual insurers; except, that: (1) Sections 27-27-4 through 27-27-14, relative to sale of securities or other financing of insurers or insurance operations, and subsection (b) of Section 27-27- 24 shall also ap…

Insurance. A domestic mutual insurer, after being authorized to transact one kind of insurance, may be authorized by the commissioner to transact such additional kinds of insurance as are permitted under Section 27-3-6, while otherwise in compliance with this title and while main…

(a) Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer with all rights and obligations of such membership, and the policy shall so specify. (b) Any individual, or firm or any public or private corporation, board, or as…

(a) A domestic mutual insurer shall have bylaws for the government of its affairs. The initial board of directors of a domestic mutual insurer shall adopt original bylaws, subject to the approval of the insurer’s members at the next succeeding meeting. The members shall have powe…

(a) The affairs of every domestic insurer shall be managed by not less than three directors, and at least one-third of the directors shall be bona fide residents of this state. (b) Directors must be elected by the members or stockholders of a domestic insurer at the annual meetin…

(a) At a special meeting of stockholders or members called for that purpose, any director of a stock or mutual insurer may be removed from office by an affirmative vote of stockholders or members holding in the aggregate a majority of the voting power of all stockholders or membe…

No person shall buy, or sell or barter a vote or proxy relative to any meeting of stockholders or members of an insurer or engage in any corrupt or dishonest practice in, or relative to, the conduct of any such meeting. Violation of this section shall be punishable as provided in…

(a) No officer or director of a domestic insurer, and no member of any committee or employee of a domestic insurer who is charged with the duty of investing or handling the funds of the insurer, shall do any of the following: (1) Deposit or invest the funds except in the corporat…

Domestic Insurers. (a) No domestic insurer shall hereafter make any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the substantial exclusion of its board of directors or to have the controlling or preemptive right to produce substan…

An insurer shall promptly give the commissioner written notice of any change of personnel among the directors or principal officers of the insurer. History: (Acts 1971, No. 407, p. 707, §524.)

Maintenance of Assets in State; Removal of Records or Assets; Exceptions. (a) Every domestic insurer shall have, and maintain, its principal place of business and home office in this state and shall keep in this state complete records of its assets, transactions, and affairs in a…

Without limiting the powers and authorities of domestic insurers, as provided in Section 27-27-61, a domestic insurer shall have the power and is hereby authorized to indemnify any director, officer, or employee, or former director, officer, or employee of the corporation, or any…

(a) No insurer shall make any disbursement of $25.00 or more unless evidenced by a voucher or other document correctly describing the consideration for the payment and support by a check or receipt endorsed or signed by, or on behalf of, the person receiving the money. (b) If the…

Generally. (a) Each member of a domestic mutual insurer shall, except as otherwise provided in this chapter with respect to nonassessable policies, have a contingent liability, pro rata and not one for another, for the discharge of its obligations, which contingent liability shal…

Assessments. (a) If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it under this title for authority to transact the kinds of insurance being transacted and the deficiency is not cur…

(a) Any assessment made by an insurer under Section 27-27-32 or 27-27-42 is prima facie correct. The amount of such assessment to be paid by each member as determined by the insurer is likewise prima facie correct. (b) The insurer shall notify each member of the amount of the ass…

(a) While possessing surplus funds in amount not less than the paid-in capital stock required of a domestic stock insurer transacting like kinds of insurance, a domestic mutual insurer may, upon receipt of the commissioner’s order so authorizing, extinguish the contingent liabili…

Insurers Authority to Issue. The commissioner shall revoke the authority of a domestic mutual insurer to issue policies without contingent liability if at any time the insurer’s assets are less than the sum of its liabilities and the surplus required for such authority or if the …

Insurers. Unless prohibited by its articles of incorporation, a domestic stock or domestic mutual insurer may issue any, or all, of its policies with, or without, participation in profits, savings, or unabsorbed portions of premiums, may classify policies issued on a participatin…

(a) A domestic stock insurer shall not pay any cash dividend to stockholders except out of that part of its available surplus funds which is derived from realized net profits on its business. (b) A stock dividend may be paid out of any available surplus funds in excess of the agg…

(a) The directors of a domestic mutual insurer may, from time to time, apportion and pay or credit to its members dividends only out of that part of its surplus funds which represents net realized savings and net realized earnings in excess of the surplus required by law to be ma…