Code of Alabama - Title 27: Insurance - Chapter 5B - Reinsurance

• Section 27-5B-1 Purpose
  The purpose of this chapter is to protect the interest of insureds, claimants, ceding insurers, assuming insurers, and the public generally. The Legislature declares its...
• Section 27-5B-2 Reinsurance permitted
  (a) An insurer authorized under this title may accept reinsurance only of such risks and retain risk thereon within such limits as it is otherwise...
• Section 27-5B-3 Credit allowed a domestic ceding insurer
  Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded only...
• Section 27-5B-4 Licensed reinsurer
  Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is licensed to transact insurance or reinsurance in this state.
• Section 27-5B-5 Accredited reinsurer
  Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is accredited by the commissioner as a reinsurer in this state....
• Section 27-5B-6 Reinsurer domiciled in state with substantially similar law
  (a) Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is domiciled in, or in the case of a U.S....
• Section 27-5B-7 Reinsurer maintaining a trust fund
  (a) Credit shall be allowed when the reinsurance is ceded to an assuming insurer that maintains a trust fund in a qualified U.S. financial institution,...
• Section 27-5B-8 Certified reinsurer
  (a) Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is certified by the commissioner as a reinsurer in this...
• Section 27-5B-9 Credit for reinsurance required by law
  Credit shall be allowed when the reinsurance is ceded to an assuming insurer not meeting the requirements of Section 27-5B-4, 27-5B-5, 27-5B-6, 27-5B-7, or 27-5B-8,...
• Section 27-5B-10 Reinsurer not licensed, accredited or certified - Additional reinsurance agreement requirements
  (a) If the assuming insurer is not licensed, accredited or certified to transact insurance or reinsurance in this state, the credit permitted by Sections 27-5B-6...
• Section 27-5B-11 Reinsurer not licensed, accredited, or certified - Additional trust agreement requirements
  If the assuming insurer does not meet the requirements of Section 27-5B-4, 27-5B-5, or 27-5B-6, the credit permitted by Section 27-5B-7 or 27-5B-8 shall not...
• Section 27-5B-12 Accredited or certified reinsurer ceasing to meet requirements
  (a) If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the commissioner may suspend or revoke the reinsurer's accreditation...
• Section 27-5B-13 Concentration risk
  (a) A ceding insurer shall take steps to manage its reinsurance recoverables proportionate to its own book of business. A domestic ceding insurer shall notify...
• Section 27-5B-14 Asset or reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Sections 27-5B-3 through 27-5B-13
  An asset or a reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Section...
• Section 27-5B-15 Qualified U.S. financial institutions
  (a) For purposes of subdivision (3) of Section 27-5B-14, a qualified U.S. financial institution means an institution that meets all of the following: (1) Is...
• Section 27-5B-16 Insolvency clause
  Except as provided in Section 27-5B-17, no credit shall be allowed, as an admitted asset or deduction from liability, to any ceding insurer for reinsurance...
• Section 27-5B-17 Guaranty association election
  Notwithstanding Section 27-5B-16, in the event that a life and health insurance guaranty association has made the election to succeed to the rights and obligations...
• Section 27-5B-18 Notice by domiciliary liquidator
  The reinsurance agreement may provide that the domiciliary liquidator of an insolvent ceding insurer shall give written notice to the assuming insurer of the pendency...
• Section 27-5B-19 Rules
  The commissioner may adopt rules implementing the provisions of this chapter.

Last modified: May 3, 2021