Code of Alabama - Title 27: Insurance - Chapter 41 - Investments of Life, Disability and Burial Insurance Companies

• Section 27-41-1 Applicability of chapter
  Except as provided in Section 27-41-39, this chapter shall apply to all domestic insurers and health maintenance organizations.
• Section 27-41-2 Definitions
  As used in this chapter, the following terms shall have the respective meanings herein set forth, unless the context shall otherwise require: (1) ALABAMA INSURANCE...
• Section 27-41-3 Investments which may be counted as admitted assets generally; investments and obligations for investments deemed eligible investments under chapter generally; filing with commissioner of certified statements as to investments or obligations for investments not deemed eligible under chapter; assets or funds to which investment limitations based upon amounts of insurers assets or particular funds relate
  (a) Only eligible investments may be counted as admitted assets. (b) Every investment lawfully held by a life, disability, or burial insurer on January 1,...
• Section 27-41-4 General requirements as to eligibility of investments
  No investment (other than in common stocks allowed under Section 27-41-17, in insurance stocks allowed under Section 27-41-18, in loans or investments allowed under Section...
• Section 27-41-5 Authorization of investments by board of directors, etc
  An insurer shall not make any investment or loan exceeding 10 percent of the admitted assets of the insurer, other than loans on policies or...
• Section 27-41-6 Limitations upon investments generally
  (a) An insurer shall not have at any one time any single investment or combination of investments in or loans upon the security of the...
• Section 27-41-7 Particular investments - Bonds, notes, etc., of United States
  An insurer may invest in bonds, notes, warrants, debentures, and other evidences of indebtedness which are direct obligations of the United States of America for...
• Section 27-41-8 Particular investments - Loans guaranteed by United States
  An insurer may invest in loans guaranteed as to principal and interest by the United States of America or by any agency or instrumentality of...
• Section 27-41-9 Particular investments - Bonds, etc., of states or counties, municipalities, school districts, etc., therein generally
  An insurer may invest in bonds or other evidences of indebtedness which are general obligations of or are adequately secured as to both principal and...
• Section 27-41-10 Particular investments - Bonds, etc., issued by states, counties, municipalities, etc., to provide funds for public projects, etc
  An insurer may invest in bonds and other evidences of indebtedness which are obligations of any state, county, city, town, village, municipality, district, or other...
• Section 27-41-11 Particular investments - Bonds, etc., of local public housing authorities
  An insurer may invest in bonds, debentures, or other evidences of indebtedness of local public housing authorities existing under the laws of the United States...
• Section 27-41-12 Particular investments - Obligations issued or guaranteed by certain federal agencies
  An insurer may invest in obligations issued or guaranteed by the following agencies of the United States of America: (1) Commodity Credit Corporation; (2) Federal...
• Section 27-41-13 Particular investments - Bonds, etc., issued, etc., by Canadian government, provinces thereof, etc
  An insurer may invest in bonds or other evidences of indebtedness issued, assumed, or guaranteed by Canada or any province thereof or issued by any...
• Section 27-41-14 Particular investments - Obligations issued, etc., by International Bank for Reconstruction and Development and National Mortgage Association
  (a) An insurer may invest in obligations issued, assumed, or guaranteed by the International Bank for Reconstruction and Development. (b) An insurer may invest in...
• Section 27-41-15 Particular investments - Obligations of American and Canadian institutions generally
  An insurer may invest in secured and unsecured obligations bearing interest at a fixed rate, with mandatory principal and interest being due at specified times,...
• Section 27-41-16 Particular investments - Preferred or guaranteed stocks or shares of American corporations
  An insurer may invest in the preferred or guaranteed stocks or shares of any solvent corporation engaged in any lawful business and existing under the...
• Section 27-41-17 Particular investments - Common stocks or shares and capital stocks of American and Canadian corporations
  (a) An insurer may invest in common stocks or shares of any solvent corporation engaged in any lawful business and existing under the laws of...
• Section 27-41-18 Particular investments - American insurance stocks
  An insurer may invest in the stocks of other solvent insurers formed under the laws of the United States or any state thereof, provided that...
• Section 27-41-19 Particular investments - Transportation equipment trust obligations; notes, etc., secured by leases, agreements, etc., relating to manufacturing, mining, etc., machinery, etc
  (a) An insurer may invest in equipment trust obligations or certificates which are adequately secured evidencing an interest in transportation equipment wholly or in part...
• Section 27-41-20 Particular investments - Leased line obligations of railroads; terminal obligations of railroads and other common carriers
  An insurer may invest in: (1) Leased line obligations of railroads where all of the fixed interest-bearing obligations of the lessee meet the standards prescribed...
• Section 27-41-21 Particular investments - Obligations of religious institutions or societies
  An insurer may invest in secured and unsecured obligations of religious institutions or societies located within the United States if the institution or society has...
• Section 27-41-22 Particular investments - Loans secured by liens on interests in oil, gas, or condensate properties, etc
  An insurer may invest in adequately secured loans secured by first liens on interests in oil, gas, or condensate properties or leaseholds in the United...
• Section 27-41-23 Particular investments - Certificates, etc., issued by trustees or receivers of institutions being administered under court direction
  An insurer may invest in certificates, notes, or other obligations issued by trustees or receivers of any institution created or existing under the laws of...
• Section 27-41-24 Particular investments - Loans secured by pledges of securities or pledges or assignments of life insurance policies
  An insurer may invest in loans with a maturity not in excess of five years from the date thereof which are secured by pledge of...
• Section 27-41-25 Particular investments - Policy loans
  A life insurer may lend to its policyholder upon the security of the policy any sum not exceeding the cash surrender value of the policy...
• Section 27-41-26 Particular investments - Shares or savings accounts of savings and loan associations
  An insurer may invest in shares or savings accounts of savings and loan associations insured by the Federal Savings and Loan Insurance Corporation.
• Section 27-41-27 Particular investments - Securities, etc., of foreign countries
  (a) An insurer may invest in securities or other investments (1) issued in, (2) located in, (3) denominated in the currency of, (4) whose ultimate...
• Section 27-41-28 Particular investments - Bonds, etc., guaranteed or insured by United States under federal law or secured by mortgages on ships, barges, etc
  An insurer may invest in bonds, debentures, notes, or other evidences of indebtedness which are: (1) Guaranteed by the United States of America, represented by...
• Section 27-41-29 Particular investments - Bonds, etc., secured by mortgages or deeds of trust on real property, etc., generally
  An insurer may invest in: (1) Bonds, notes, or other evidences of indebtedness which are secured by a first mortgage lien or deed of trust...
• Section 27-41-30 Particular investments - Loans, notes, etc., secured by mortgages and leases on real property
  An insurer may invest in loans, notes, bonds, or other evidences of indebtedness of any person up to the fair value of real property securing...
• Section 27-41-31 Particular investments - Data processing and accounting systems
  An insurer may invest in electronic and mechanical machines constituting a data processing and accounting system if the cost of such system is not less...
• Section 27-41-32 Particular investments - Investments relating to agricultural property securing evidences of indebtedness held by insurers and subject to mortgage foreclosure or insolvency proceedings
  (a) If real property securing any evidence of indebtedness held by an insurer is used for agricultural purposes and a proceeding to foreclose the mortgage...
• Section 27-41-33 Particular investments - Loans on personal property; chattel mortgages
  In connection with mortgage loans made under subdivisions (2) and (3) of Section 27-41-29, an insurer may loan on the value of personal property items...
• Section 27-41-34 Particular investments - Real estate
  (a)(1) An insurer may acquire, invest in, own, maintain, alter, furnish, and improve the following real estate: a. Land and buildings used for home office...
• Section 27-41-34.1 Particular investments - Oil and gas producing properties and facilities
  (a) An insurer may invest in properties and facilities, and any interest and rights in such properties and facilities, for the development and production of...
• Section 27-41-35 Miscellaneous investments
  (a) An insurer may make investments not otherwise expressly permitted by this chapter which may be counted as admitted assets, except as expressly prohibited under...
• Section 27-41-36 Prohibited investments; underwriting, etc., of offerings of securities or property
  (a) After January 1, 1978, an insurer shall not invest in nor lend its funds upon the security of any note or other evidence of...
• Section 27-41-37 Investments of mutual aid associations - Generally
  (a) The funds of a mutual aid association shall be in cash or shall be invested as provided in Sections 27-41-3 through 27-41-36 and Section...
• Section 27-41-38 Investments of mutual aid associations - Funeral supply inventories and funeral equipment
  In addition to other investments permitted under this chapter, mutual aid associations may invest in funeral supply inventories, consisting of caskets, suits, robes, dresses, and...
• Section 27-41-39 Investments of foreign and alien insurers; cash equivalents
  (a) The investments of a foreign or alien insurer shall be as permitted by the laws of its domicile, but shall be of a quality...
• Section 27-41-40 Effect of failure to dispose of real estate, personal property, securities, etc., within prescribed period of time
  Any real estate, personal property, securities, or other investment lawfully acquired and held by an insurer shall not be allowed as an admitted asset of...
• Section 27-41-41 Only eligible investments to be counted as admitted assets; treatment of investments partially qualifying as eligible investments
  Except as expressly prohibited in Section 27-41-36, an insurer may make any investment without limit as to kind, time, or amount, but only eligible investments...

Last modified: May 3, 2021