Code of Alabama - Title 27: Insurance - Chapter 31 - Reciprocal Insurers

• Section 27-31-1 Definitions
  For the purposes of this chapter, the following terms shall have the meanings respectively ascribed to them by this section. (1) RECIPROCAL INSURANCE. Insurance resulting...
• Section 27-31-2 Applicability of chapter
  (a) All authorized reciprocal insurers shall be governed by those sections of this chapter not expressly made applicable to domestic reciprocals. (b) Existing authorized reciprocal...
• Section 27-31-3 Powers generally
  (a) A reciprocal insurer may, upon qualifying therefor as provided for by this title, transact any kind or kinds of insurance defined by this title,...
• Section 27-31-4 Business name; actions
  A reciprocal insurer shall: (1) Have and use a business name. The name shall include the word "reciprocal," or "interinsurer," or "interinsurance," or "exchange," or...
• Section 27-31-5 Attorneys
  (a) "Attorney," as used in this chapter, refers to the attorney-in-fact of a reciprocal insurer. The attorney may be an individual, firm, or corporation. (b)...
• Section 27-31-6 Surplus funds of domestic insurer
  (a) A domestic reciprocal insurer formed under this chapter, if it has otherwise complied with the applicable provisions of this title, may be authorized to...
• Section 27-31-7 Certificate of authority - Application by domestic insurer; contents of declaration
  (a) Twenty-five or more persons domiciled in this state may organize a domestic reciprocal insurer and make application to the commissioner for a certificate of...
• Section 27-31-8 Certificate of authority - Issuance; refusal, suspension, or revocation
  (a) The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer. (b) The commissioner may...
• Section 27-31-9 Power of attorney
  (a) The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the...
• Section 27-31-10 Modifications of subscribers' agreement or power of attorney of domestic insurer
  Modifications of the terms of the subscribers' agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the...
• Section 27-31-11 Bond of attorney of domestic insurer - Requirements
  (a) Concurrently with the filing of the declaration provided for in Section 27-31-7, the attorney of a domestic reciprocal insurer shall file with the commissioner...
• Section 27-31-12 Bond of attorney of domestic insurer - Deposit in lieu thereof
  In lieu of the bond required under Section 27-31-11, the attorney may maintain on deposit with the State Treasurer, through the office of the commissioner,...
• Section 27-31-13 Action on bond or deposit in lieu thereof
  Action on the attorney's bond or to recover against any such deposit made in lieu thereof may be brought at any time by one or...
• Section 27-31-14 Service of process on domestic insurer; judgment thereon
  (a) Legal process shall be served upon a domestic reciprocal insurer by serving the insurer's attorney at his principal offices or by serving the commissioner...
• Section 27-31-15 Advancement of funds to domestic insurers
  The attorney or other parties may advance to a domestic reciprocal insurer, upon reasonable terms, such funds as it may require, from time to time,...
• Section 27-31-16 Annual statement; supplemental information
  (a) The annual statement of a reciprocal insurer shall be made and filed by its attorney. (b) The statement shall be supplemented by such information...
• Section 27-31-17 Determination of financial condition
  In determining the financial condition of a reciprocal insurer, the commissioner shall apply the following rules: (1) He shall charge as liabilities the same reserves...
• Section 27-31-18 Subscribers; exchange of insurance contracts; liability of representatives
  Individuals, partnerships, and corporations of this state may make application, enter into agreement for, and hold, policies or contracts in, or with, and be a...
• Section 27-31-19 Subscribers' advisory committee of domestic insurer
  (a) The advisory committee of a domestic reciprocal insurer exercising the subscribers' rights shall be selected under such rules as the subscribers adopt. (b) Not...
• Section 27-31-20 Liability of subscribers - Generally
  (a) The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several...
• Section 27-31-21 Liability of subscribers - Judgment
  (a) No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer...
• Section 27-31-22 Levy of assessments on subscribers of domestic insurers - Generally
  (a) Assessments may from time to time be levied upon subscribers of a domestic reciprocal insurer liable therefor under the terms of their policies by...
• Section 27-31-23 Levy of assessments on subscribers of domestic insurers - Time limit
  Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for and shall pay his share of, any assessment, as computed and...
• Section 27-31-24 Levy of assessments on subscribers of domestic insurers - Aggregate liability
  No one policy or subscriber as to such policy shall be assessed or charged with an aggregate of contingent liability as to obligations incurred by...
• Section 27-31-25 Nonassessable policies
  (a) If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock required of a domestic...
• Section 27-31-26 Distribution of unused premiums, etc
  A reciprocal insurer may from time to time return to its subscribers any unused premiums, savings, or credits accruing to their accounts. Any such distribution...
• Section 27-31-27 Distribution of assets upon liquidation of domestic insurer
  Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharge of its indebtedness and policy obligations, the return of any contributions of...
• Section 27-31-28 Merger or conversion of domestic insurer
  (a) A domestic reciprocal insurer, upon affirmative vote of not less than two thirds of its subscribers who vote on such merger, pursuant to due...
• Section 27-31-29 Proceedings when assets of insurer insufficient
  (a) If the assets of a reciprocal insurer are at any time insufficient to discharge its liabilities, other than any liability on account of funds...

Last modified: May 3, 2021