Code of Alabama - Title 27: Insurance - Chapter 15 - Life Insurance and Annuity Contracts

• Article 1 General Provisions.
• Section 27-15-1 Applicability of article
  This article applies to contracts of life insurance and annuities other than reinsurance, group life insurance, group annuities, industrial life, and burial insurance; except, that...
• Section 27-15-2 Life insurance policy provisions - Generally
  (a) No policy of life insurance other than industrial, group, and pure endowments, with or without return of premiums or of premiums and interest, shall...
• Section 27-15-3 Life insurance policy provisions - Grace period
  There shall be a provision that a grace period of 30 days or, at the option of the insurer, of one month of not less...
• Section 27-15-4 Life insurance policy provisions - Incontestability
  There shall be a provision that the policy, exclusive, at the option of the insurer, of provisions relating to disability benefits or to additional benefits...
• Section 27-15-5 Life insurance policy provisions - Entire contract; representations
  There shall be a provision that the policy, or the policy and the application or a summary of such application, if a copy of the...
• Section 27-15-6 Life insurance policy provisions - Misstatement of age or sex
  There shall be a provision that if the age or sex of the insured or of any other person whose age or sex is considered...
• Section 27-15-7 Life insurance policy provisions - Dividends
  There shall be a provision in participating policies that, beginning not later than the end of the third policy year, the insurer shall annually ascertain...
• Section 27-15-8 Life insurance policy provisions - Loans on policy
  (a) In case of policies issued on and after the operative date of Section 21-15-28, there shall be a provision that after the policy has...
• Section 27-15-8.1 Life insurance policy provisions - Maximum rates of interest on policy loans
  (a) For purposes of this section the "published monthly average" means: (1) The Monthly Average of the Composite Yield on Seasoned Corporate Bonds as published...
• Section 27-15-9 Life insurance policy provisions - Table of values and benefits
  In policies issued on and after the operative date of Section 27-15-28, there shall be a table showing in figures the loan value and the...
• Section 27-15-10 Life insurance policy provisions - Table of installments
  In case the policy provides that the proceeds may be payable in installments which are determinable at issue of the policy, there shall be a...
• Section 27-15-11 Life insurance policy provisions - Reinstatement
  There shall be a provision that unless the policy has been surrendered for its cash value, or its cash surrender value has been exhausted or...
• Section 27-15-12 Life insurance policy provisions - Payment of premiums; increases
  (a) There shall be a provision relative to the payment of premiums. (b) A premium may not be increased unless the policy or a document...
• Section 27-15-13 Life insurance policy provisions - Settlement of claims
  (a) There shall be a provision that when a life insurance policy shall become a claim by the death of the insured, settlement shall be...
• Section 27-15-14 Life insurance policy provisions - Title
  There shall be a title on the policy briefly describing the same.
• Section 27-15-15 Effect of incontestability clause
  A clause in any policy of life insurance or annuity contract providing that such policy or contract shall be incontestable after a specified period shall...
• Section 27-15-16 Annuity and pure endowment contract provisions - Generally
  (a) No annuity or pure endowment contract, other than reversionary annuities, survivorship annuities, or group annuities and except as stated in this section, shall be...
• Section 27-15-17 Annuity and pure endowment contract provisions - Grace period
  In an annuity or pure endowment contract, other than a reversionary, survivorship or group annuity, there shall be a provision that there shall be a...
• Section 27-15-18 Annuity and pure endowment contract provisions - Incontestability
  If any statements, other than those relating to age, sex, and identity, are required as a condition to issuing an annuity or pure endowment contract,...
• Section 27-15-19 Annuity and pure endowment contract provisions - Entire contract
  In an annuity or pure endowment contract, other than a reversionary, survivorship, or group annuity, there shall be a provision that the written contract shall...
• Section 27-15-20 Annuity and pure endowment contract provisions - Misstatement of age or sex
  In an annuity or pure endowment contract, other than a reversionary, survivorship, or group annuity, there shall be a provision that if the age or...
• Section 27-15-21 Annuity and pure endowment contract provisions - Dividends
  If an annuity or pure endowment contract, other than a reversionary, survivorship, or group annuity, is participating, there shall be a provision that the insurer...
• Section 27-15-22 Annuity and pure endowment contract provisions - Reinstatement
  In an annuity or pure endowment contract, other than a reversionary, survivorship, or group annuity, there shall be a provision that the contract may be...
• Section 27-15-23 Standard provisions in contracts for reversionary annuities
  (a) Except as stated in this section, no contract for a reversionary annuity shall be delivered or issued for delivery in this state unless it...
• Section 27-15-24 Exclusions and restrictions in life insurance policies
  (a) No policy of life insurance shall be delivered or issued for delivery in this state if it contains any of the following provisions: (1)...
• Section 27-15-25 Contestability of reinstated policies
  A reinstated policy of life insurance or annuity contract may be contested on account of fraud or misrepresentation of facts material to the reinstatement only...
• Section 27-15-26 Power of life insurer to hold proceeds of policy
  Any life insurer shall have the power to hold under agreement the proceeds of any policy issued by it upon such terms and restrictions as...
• Section 27-15-27 Deductions in determining amount due under life insurance
  In determining the amount due under any life insurance policy heretofore or hereafter issued, deduction may be made of: (1) Any unpaid premiums or installments...
• Section 27-15-28 Standard nonforfeiture law for life insurance
  Repealed by Act 2016-411, §3, effective January 1, 2017.
• Section 27-15-28.1 Standard nonforfeiture law for individual deferred annuities - Annuity contracts issued by election under this section until June 30, 2006
  (a) This section shall be known as the standard nonforfeiture law for individual deferred annuities. (b) This section shall not apply to any reinsurance group...
• Section 27-15-28.2 Standard nonforfeiture law for individual deferred annuities - Annuity contracts issued after June 30, 2006, or by election under this section until June 30, 2006
  (a) This section shall be known as the standard nonforfeiture law for individual deferred annuities. (b) This section shall not apply to any reinsurance group...
• Section 27-15-29 Prohibited policy plans
  (a) No insurer shall hereafter deliver or issue for delivery in this state any policy or contract providing for the establishment of its policyholders or...
• Article 2 Unclaimed Life Insurance Benefits Act.
• Section 27-15-50 Short title
  This article shall be known and may be cited as the Unclaimed Life Insurance Benefits Act.
• Section 27-15-51 Construction and application of article
  (a) This article shall require recognition of the escheat or unclaimed property statutes of Alabama as they relate to the method of payment for life...
• Section 27-15-52 Definitions
  The following terms shall have the following meanings: (1) COMMERCIALLY REASONABLE EFFORT. The plans, processes, or procedures necessary to confirm the death of the insured,...
• Section 27-15-53 Requirements for death master file comparisons
  (a) An insurer shall perform a comparison of its insureds' in-force life insurance policies, annuity contracts, and retained asset accounts against a death master file,...
• Article 3 Standard Nonforfeiture Law for Life Insurance.
• Section 27-15-70 Short title
  This article shall be known as the Standard Nonforfeiture Law for Life Insurance.
• Section 27-15-71 Definitions
  For the purposes of this article, the following terms shall have the following meanings: (1) NAIC. The National Association of Insurance Commissioners. (2) OPERATIVE DATE...
• Section 27-15-72 Nonforfeiture benefits
  (a) In the case of policies issued on or after January 1, 1972, no policy of life insurance, except as set forth in Section 27-15-82,...
• Section 27-15-73 Computation of cash surrender value
  (a) Any cash surrender value available under the policy in the event of default in the premium payment due on any policy anniversary, whether or...
• Section 27-15-74 Computation of paid-up nonforfeiture benefits
  Any paid-up nonforfeiture benefit available under the policy in the event of default in the premium payment due on any policy anniversary shall be such...
• Section 27-15-75 Calculation of adjusted premiums
  (a)(1) This section shall not apply to policies issued on or after the operative date of Section 27-15-78, as defined therein. Except as provided in...
• Section 27-15-76 Calculation of adjusted premiums - Ordinary policies
  (a) This section shall not apply to ordinary policies issued on or after the operative date of Section 27-15-78, as defined therein. (b) In the...
• Section 27-15-77 Calculation of adjusted premiums - Industrial policies
  (a) This section shall not apply to industrial policies to be issued on or after the operative date of Section 27-15-78, as defined therein. (b)...
• Section 27-15-78 Calculations of adjusted premiums by the nonforfeiture net level premium method
  (a) This section shall apply to all policies issued on or after the operative date of this section as defined herein. Except as provided in...
• Section 27-15-79 Nonforfeiture benefits for indeterminate premium plans
  In the case of any plan of life insurance which provides for future premium determination, the amounts of which are to be determined by the...
• Section 27-15-80 Proration of values; net value of paid-up additions
  Any cash surrender value and any paid-up nonforfeiture benefit available under the policy in the event of default in a premium payment due at any...
• Section 27-15-81 Consistency of progression of cash surrender values with increasing policy duration
  (a) This section, in addition to all other applicable sections of this article, shall apply to all policies issued on or after January 1, 1985....
• Section 27-15-82 Exceptions
  This article shall not apply to any of the following: (1) Reinsurance. (2) Group insurance. (3) Pure endowment. (4) Annuity or reversionary annuity contract. (5)...
• Section 27-15-83 Applicability of article
  For purposes of determining the applicability of this article, the age at expiry for a joint term life insurance policy shall be the age at...

Last modified: May 3, 2021