Code of Alabama - Title 27: Insurance - Chapter 31B - Alabama Captive Insurers Act

• Section 27-31B-1 Short title
  This chapter shall be known and may be cited as the "Alabama Captive Insurers Act."
• Section 27-31B-2 Definitions
  As used in this chapter, the following terms shall have the following meanings, unless the context clearly indicates otherwise: (1) AFFILIATED COMPANY. Any company in...
• Section 27-31B-3 Licensing
  (a) Any captive insurance company, when permitted by its articles of association, charter, or other organizational document, may apply to the commissioner for a license...
• Section 27-31B-4 Fees
  (a) The commissioner shall collect the following fees in connection with Section 27-31B-3: (1) Filing application for license, two hundred dollars ($200). (2) License fee,...
• Section 27-31B-5 Names of companies
  No captive insurance company shall adopt a name that is the same, deceptively similar, or likely to be confused with or mistaken for any other...
• Section 27-31B-6 Minimum capital and surplus
  (a) No captive insurance company shall be issued a license unless it shall possess and thereafter maintain unimpaired paid-in capital and surplus as follows: (1)...
• Section 27-31B-7 Dividends
  No captive insurance company may pay a dividend out of, or other distribution with respect to, capital or surplus, in excess of the limitations set...
• Section 27-31B-8 Formation of captive insurance companies in this state
  (a) A pure captive insurance company or a protected cell captive insurance company shall be formed as a stock or mutual insurer, or as a...
• Section 27-31B-9 Reports and statements
  (a) Captive insurance companies shall not be required to make any annual report except as provided in this chapter. (b) Prior to March 1 of...
• Section 27-31B-10 Examinations and investigations
  (a) At least once in three years, and whenever the commissioner determines it to be prudent, the commissioner shall visit each captive insurance company and...
• Section 27-31B-11 Grounds and procedures for suspension or revocation of license
  (a) The license of a captive insurance company to do an insurance business in this state may be suspended or revoked by the commissioner for...
• Section 27-31B-12 Legal investments
  (a) An association captive insurance company, risk retention group, and an industrial insured captive insurance company insuring the risks of an industrial insured group defined...
• Section 27-31B-13 Reinsurance
  (a) A captive insurance company may provide reinsurance, as authorized in this title, on risks ceded by any other insurer. (b) A captive insurance company...
• Section 27-31B-14 Rating organizations; memberships
  No captive insurance company may be required to join a rating organization.
• Section 27-31B-15 Exemption from compulsory associations
  No captive insurance company, including a captive insurance company organized as a reciprocal insurer under this chapter, may join or contribute financially to any plan,...
• Section 27-31B-16 Tax on premiums collected
  (a) Each captive insurance company shall pay to the commissioner, by March 1 of each year, a tax at the rate of four-tenths of one...
• Section 27-31B-17 Rules
  The commissioner may establish and from time to time amend rules relating to captive insurance companies as are necessary to enable the commissioner to carry...
• Section 27-31B-18 Laws applicable
  No provisions of this title, other than those contained in this chapter or referring specifically to captive insurance companies, shall apply to captive insurance companies.
• Section 27-31B-19 Delinquency
  (a) Except as otherwise provided in this section, the terms and conditions set forth in Chapter 32 and Article 2, commencing with Section 27-2-50, of...
• Section 27-31B-20 Rules for controlled unaffiliated business
  The commissioner shall adopt rules establishing standards to ensure that a parent or affiliated company is able to exercise control of the risk management function...
• Section 27-31B-21 Conversion to or merger with reciprocal insurer
  (a) An association captive insurance company or industrial insured group formed as a stock or mutual corporation may be converted to or merged with and...
• Section 27-31B-22 Protected cell captive insurance companies
  (a) One or more sponsors may form a protected cell captive insurance company under this chapter. (b) A protected cell captive insurance company formed or...
• Section 27-31B-23 Qualification of sponsors
  Repealed by Act 2016-191, §3, effective July 1, 2016.
• Section 27-31B-24 Participants in protected cell captive insurance companies
  (a) An association, corporation, limited liability company, partnership, trust, or other business entity may be a participant in a protected cell captive insurance company formed...
• Section 27-31B-25 Incorporation of protected cells
  (a) A protected cell of a protected cell captive insurance company may be formed as an incorporated protected cell. (b) Subject to the prior written...

Last modified: May 3, 2021