Code of Alabama - Title 27: Insurance - Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers

• Section 27-27-1 Definitions
  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...
• Section 27-27-2 Applicability of chapter
  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...
• Section 27-27-3 Power of domestic insurers to indemnify directors, etc
  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...
• Section 27-27-4 Solicitation permit - Requirement
  (a) No person forming, or proposing to form, in this state or secure funds in this state for the financing of an insurer, or insurance...
• Section 27-27-5 Solicitation permit - Application
  To apply for a solicitation permit, the person shall: (1) File with the commissioner a request therefor showing: a. Name, type and purpose of insurer,...
• Section 27-27-6 Solicitation permit - Approval or denial
  (a) The commissioner shall expeditiously examine the application for a solicitation permit and make such investigation relative thereto as he deems necessary, subject to subsection...
• Section 27-27-7 Solicitation permit - Issuance; contents; compliance with terms
  (a) Upon the filing of any bond required by Sections 27-27-10 or 27-27-16, after notice by the commissioner provided for in subsection (a) of Section...
• Section 27-27-8 Solicitation permit - Effect of granting permit
  The granting of a solicitation permit is permissive only and shall not constitute an endorsement by the commissioner of any person or thing related to...
• Section 27-27-9 Solicitation permit - Modification or revocation
  (a) The commissioner may, for cause, modify a solicitation permit theretofore issued or may, after a hearing, revoke any solicitation permit for violation of any...
• Section 27-27-10 Solicitation permit - Bond or deposit in lieu thereof; waiver of same
  (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...
• Section 27-27-11 Licensing of securities salesmen
  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...
• Section 27-27-12 Deposit of solicitation permit funds in escrow - Requirement
  (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...
• Section 27-27-13 Deposit of solicitation permit funds in escrow - Withdrawal and 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...
• Section 27-27-14 Solicitation permit for subsequent financing
  (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...
• Section 27-27-15 Domestic mutual insurers - Authorization to transact insurance
  (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...
• Section 27-27-16 Domestic mutual insurers - Bond or deposit in lieu thereof
  (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...
• Section 27-27-17 Domestic mutual insurers - Solicitation of qualifying applications for 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...
• Section 27-27-18 Domestic mutual insurers - Deposit in trust of premiums or fees on 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...
• Section 27-27-19 Domestic mutual insurers - Failure to complete organization
  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,...
• Section 27-27-20 Domestic mutual insurers - Authorization to transact additional kinds of 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...
• Section 27-27-21 Domestic mutual insurers - Membership
  (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...
• Section 27-27-22 Domestic mutual insurers - Bylaws
  (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...
• Section 27-27-23 Directors of domestic insurers - Number; election; qualifications
  (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...
• Section 27-27-24 Directors of domestic insurers - Removal; vacancies
  (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...
• Section 27-27-25 Corrupt or dishonest practices in meeting of stockholders or members
  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...
• Section 27-27-26 Pecuniary interests of officers, etc., of domestic insurers
  (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...
• Section 27-27-27 Exclusive management and production of business contracts by 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...
• Section 27-27-28 Notice of change of directors, etc
  An insurer shall promptly give the commissioner written notice of any change of personnel among the directors or principal officers of the insurer.
• Section 27-27-29 Principal place of business and home office of domestic insurers; 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...
• Section 27-27-30 Voucher or other document for disbursements
  (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...
• Section 27-27-31 Contingent liability of members of domestic mutual insurers - 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,...
• Section 27-27-32 Contingent liability of members of domestic mutual insurers - Levy of 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...
• Section 27-27-33 Collection of assessments by insurers
  (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...
• Section 27-27-34 Nonassessable policies in mutual insurers - Generally
  (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,...
• Section 27-27-35 Nonassessable policies in mutual insurers - Revocation of domestic 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...
• Section 27-27-36 Issuance of participating or nonparticipating policies by domestic 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,...
• Section 27-27-37 Dividends - Domestic stock insurers
  (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...
• Section 27-27-38 Dividends - Domestic mutual insurers
  (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...
• Section 27-27-39 Dividends - Liability for illegal dividends by domestic insurers
  (a) Any director of a domestic stock or mutual insurer who knowingly votes for, or concurs in, declaration or payment of a dividend to stockholders...
• Section 27-27-40 Loans by domestic insurers
  (a) A domestic stock or mutual insurer may borrow money to defray the expenses of its organization, provide it with surplus funds or for any...
• Section 27-27-41 Deficiencies in stock insurer's capital or assets of mutual insurers - Generally
  (a) If a stock insurer's capital, as represented by the aggregated par value of its outstanding capital stock, becomes impaired or the assets of a...
• Section 27-27-42 Deficiencies in stock insurer's capital or assets of mutual insurers - Curing of deficiency
  Any insurer receiving the commissioner's notice mentioned in Section 27-27-41: (1) If a stock insurer and if its articles of incorporation and laws of this...
• Section 27-27-43 Mutualization of stock insurers
  (a) A stock insurer other than a title insurer may become a mutual insurer under such plan and procedure as may be approved by the...
• Section 27-27-44 Conversion of mutual insurer into stock insurer
  (a) A mutual insurer may become a stock insurer under such plan and procedure as may be approved by the commissioner after a hearing thereon....
• Section 27-27-45 Merger and consolidations - Domestic stock insurers
  (a) A domestic stock insurer may merge or consolidate with one or more domestic or foreign stock insurers by complying with the applicable provisions of...
• Section 27-27-46 Merger and consolidations - Domestic mutual insurers
  (a) A domestic mutual insurer may merge or consolidate with another insurer under the applicable procedures prescribed by the statutes of this state applying to...
• Section 27-27-47 Bulk reinsurance - Domestic stock insurers
  (a) A domestic stock insurer may reinsure all, or substantially all, of its insurance in force or a major class thereof with another insurer by...
• Section 27-27-48 Bulk reinsurance - Domestic mutual insurers
  (a) A domestic mutual insurer may reinsure all, or substantially all, its business in force or all, or substantially all, of a major class thereof...
• Section 27-27-49 Distribution of assets upon liquidation of domestic mutual insurer
  (a) Upon any liquidation of a domestic mutual insurer, its assets remaining after discharge of its indebtedness, policy obligations, repayment of contributed or borrowed surplus,...
• Section 27-27-49.1 Recovery
  (a) If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under such order shall have a right...
• Section 27-27-50 Extinguishment and nullification of domestic insurers' corporate charter
  (a) The corporate charter of any corporation formed under the laws of this state more than three years prior to January 1, 1972, for the...
• Section 27-27-51 Rules and regulations as to securities of domestic stock insurers
  The commissioner shall have the power, and it shall be his duty, to prescribe, publish, and disseminate to all domestic stock insurance companies uniform written...
• Section 27-27-52 Insider trading of domestic stock insurer equity securities - Short title
  Sections 27-27-52 through 27-27-60 shall be known as the "Insider Trading of Domestic Stock Insurer Equity Securities Law."
• Section 27-27-53 Insider trading of domestic stock insurer equity securities - Ownership statements
  Every person who is, directly or indirectly, the beneficial owner of more than 10 percent of any class of any equity security of a domestic...
• Section 27-27-54 Insider trading of domestic stock insurer equity securities - Recovery of certain profits by company
  For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director, or officer by reason of...
• Section 27-27-55 Insider trading of domestic stock insurer equity securities - Unlawful sales
  It shall be unlawful for any such beneficial owner, director, or officer, directly or indirectly, to sell any equity security of such company if the...
• Section 27-27-56 Insider trading of domestic stock insurer equity securities - Exemptions from Sections 27-27-54 and 27-27-55; prescription of terms and conditions thereon
  The provisions of Section 27-27-54 shall not apply to any purchase and sale or sale and purchase and the provisions of Section 27-27-55 shall not...
• Section 27-27-57 Insider trading of domestic stock insurer equity securities - Applicability of Sections 27-27-53 through 27-27-55
  The provisions of Sections 27-27-53 through 27-27-55 shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and regulations...
• Section 27-27-58 Insider trading of domestic stock insurer equity securities - Equity securities - Defined
  The term "equity security," when used in this chapter, means any stock or similar security or any security convertible, with or without consideration, into such...
• Section 27-27-59 Insider trading of domestic stock insurer equity securities - Equity securities - Applicability of Sections 27-27-53 through 27-27-55
  The provisions of Sections 27-27-53 through 27-27-55 shall not apply to equity securities of a domestic stock insurance company if: (1) Such securities shall be...
• Section 27-27-60 Insider trading of domestic stock insurer equity securities - Rules and regulations
  The commissioner shall have the power to make such rules and regulations as may be necessary for the execution of the functions vested in him...
• Section 27-27-61 Applicability of corporation statutes to domestic insurers
  The applicable statutes of this state relating to the powers and procedures of domestic private corporations formed for profit shall apply to domestic stock insurers...

Last modified: May 3, 2021