reglab/housing_qa huggingface dataset:
AL Code § 27-36A-9 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 36A - Standard Valuation Law.|Section 27-36A-9 - Reserve Valuation Method - Annuity and Pure Endowment Benefits.

Section 27-36A-9Reserve valuation method - Annuity and pure endowment benefits.  (a) This section shall apply to all annuity and pure endowment contracts other than group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer, including a partnership or sole proprietorship, or by an employee organization, or by both, other than a plan providing individual retirement accounts or individual retirement annuities under Section 408 of the Internal Revenue Code, as now or hereafter amended. (b) Reserves according to the commissioner's annuity reserves method for benefits under annuity or pure endowment contracts, excluding any disability and accidental death benefits in the contracts, shall be the greatest of the respective excesses of the present values, at the date of valuation, of the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by the contracts at the end of each respective contract year, over the present value, at the date of valuation, of any future valuation considerations derived from future gross considerations, required by the terms of the contract, that become payable prior to the end of the respective contract year. The future guaranteed benefits shall be determined by using the mortality table, if any, and the interest rate, or rates, specified in the contracts for determining guaranteed benefits. The valuation considerations are the portions of the respective gross considerations applied under the terms of the contracts to determine nonforfeiture values. (Act 2016-411, §2.)
AL Code § 27-36A-10 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 36A - Standard Valuation Law.|Section 27-36A-10 - Minimum Reserves.

Section 27-36A-10Minimum reserves.  (a) In no event shall a company's aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, issued on or after January 1, 1972, be less than the aggregate reserves calculated in accordance with the methods set forth in Sections 27-36A-8, 27-36A-9, 27-36A-12, and 27-36A-13 and the mortality table or tables and rate or rates of interest used in calculating nonforfeiture benefits for the policies. (b) In no event shall the aggregate reserves for all policies, contracts, and benefits be less than the aggregate reserves determined by the qualified actuary to be necessary to render the opinion required by Section 27-36A-4. (Act 2016-411, §2.)
AL Code § 27-36A-11 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 36A - Standard Valuation Law.|Section 27-36A-11 - Optional Reserve Calculation.

Section 27-36A-11Optional reserve calculation. (a) Reserves for policies and contracts issued prior to January 1, 1972, may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for all policies and contracts than the minimum reserves required by the laws in effect immediately prior to that date. (b) Reserves for any category of policies, contracts, or benefits issued on or after January 1, 1972, may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for the category than those calculated according to the minimum standard provided in this chapter, but the rate or rates of interest used for policies and contracts, other than annuity and pure endowment contracts, shall not be higher than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided for therein. (c) A company which at any time shall have adopted any standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard provided in this chapter, with the approval of the commissioner, may adopt any lower standard of valuation, but not lower than the minimum provided in this chapter; provided that, for the purposes of this section, the holding of additional reserves previously determined by the qualified actuary to be necessary to render the opinion required by Section 27-36A-4 shall not be deemed to be the adoption of a higher standard of valuation. (Act 2016-411, §2.)
AL Code § 27-36A-12 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 36A - Standard Valuation Law.|Section 27-36A-12 - Reserve Calculation - Valuation Net Premium Exceeding the Gross Premium Charged.

Section 27-36A-12Reserve calculation - Valuation net premium exceeding the gross premium charged.   (a) If in any contract year the gross premium charged by a company on a policy or contract issued on or after January 1, 1972, is less than the valuation net premium for the policy or contract calculated by the method used in calculating the reserve thereon, but using the minimum valuation standards of mortality and rate of interest, the minimum reserve required for the policy or contract shall be the greater of either the reserve calculated according to the mortality table, rate of interest, and method actually used for the policy or contract, or the reserve calculated by the method actually used for the policy or contract but using the minimum valuation standards of mortality and rate of interest and replacing the valuation net premium by the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium. The minimum valuation standards of mortality and rate of interest referred to in this section are those standards stated in Sections 27-36A-5 and 27-36A-7. (b) For a life insurance policy issued on or after January 1, 1985, for which the gross premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for the excess, and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than excess premium, the provisions of subsection (a) shall be applied as if the method actually used in calculating the reserve for the policy were the method described in Section 27-36A-8, but ignoring subsection (b) of Section 27-36A-8. The minimum reserve at each policy anniversary of the policy shall be the greater of the minimum reserve calculated in accordance with Section 27-36A-8, including subsection (b) of Section 27-36A-8, and the minimum reserve calculated in accordance with this section. (Act 2016-411, §2.)
AL Code § 27-36A-13 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 36A - Standard Valuation Law.|Section 27-36A-13 - Reserve Calculation - Indeterminate Premium Plans.

Section 27-36A-13Reserve calculation - 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 company based on then estimates of future experience, or in the case of any plan of life insurance or annuity which is of a nature that the minimum reserves cannot be determined by the methods described in Sections 27-36A-8, 27-36A-9, and 27-36A-12, the reserves which are held under any plan shall comply with both of the following: (1) Be appropriate in relation to the benefits and the pattern of premiums for that plan. (2) Be computed by a method which is consistent with the principles of this standard valuation law, as determined by regulations promulgated by the commissioner. (Act 2016-411, §2.)
AL Code § 27-36A-14 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 36A - Standard Valuation Law.|Section 27-36A-14 - Minimum Standard for Accident and Health Insurance Contracts.

Section 27-36A-14Minimum standard for accident and health insurance contracts.  (a) For accident and health insurance contracts issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under subsection (b) of Section 27-36A-3. (b) For disability, accident and sickness, and accident and health insurance contracts issued on or after January 1, 1972, and prior to the operative date of the valuation manual, the minimum standard of valuation is the standard adopted by the commissioner by regulation. (Act 2016-411, §2.)
AL Code § 27-36A-16 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 36A - Standard Valuation Law.|Section 27-36A-16 - Requirements of a Principle-Based Valuation.

Section 27-36A-16Requirements of a principle-based valuation.  (a) A company must establish reserves using a principle-based valuation that meets the following conditions for policies or contracts as specified in the valuation manual: (1) Quantify the benefits and guarantees, and the funding, associated with the contracts and their risks at a level of conservatism that reflects conditions that include unfavorable events that have a reasonable probability of occurring during the lifetime of the contracts. For polices or contracts with significant tail risk, reflects conditions appropriately adverse to quantify the tail risk. (2) Incorporate assumptions, risk analysis methods and financial models, and management techniques that are consistent with, but not necessarily identical to, those utilized within the company's overall risk assessment process, while recognizing potential differences in financial reporting structures and any prescribed assumptions or methods. (3) Incorporate assumptions that are derived in one of the following manners: a. The assumption is prescribed in the valuation manual. b. For assumptions that are not prescribed, the assumptions shall either: 1. Be established utilizing the company's available experience, to the extent it is relevant and statistically credible. 2. To the extent that company data is not available, relevant, or statistically credible, be established utilizing other relevant, statistically credible experience. (4) Provide margins for uncertainty including adverse deviation and estimation error, such that the greater the uncertainty the larger the margin and resulting reserve. (b) A company using a principle-based valuation for one or more policies or contracts subject to this section as specified in the valuation manual shall: (1) Establish procedures for corporate governance and oversight of the actuarial valuation function consistent with those described in the valuation manual. (2) Provide to the commissioner and the board of directors an annual certification of the effectiveness of the internal controls with respect to the principle-based valuation. The controls shall be designed to assure that all material risks inherent in the liabilities and associated assets subject to such valuation are included in the valuation, and that valuations are made in accordance with the valuation manual. The certification shall be based on the controls in place as of the end of the preceding calendar year. (3) Develop, and file with the commissioner upon request, a principle-based valuation report that complies with standards prescribed in the valuation manual. (c) A principle-based valuation may include a prescribed formulaic reserve component. (Act 2016-411, §2.)
AL Code § 27-36A-17 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 36A - Standard Valuation Law.|Section 27-36A-17 - Experience Reporting for Policies in Force on or After the Operative Date of the Valuation Manual.

Section 27-36A-17Experience reporting for policies in force on or after the operative date of the valuation manual.  A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual. (Act 2016-411, §2.)
AL Code § 27-36A-19 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 36A - Standard Valuation Law.|Section 27-36A-19 - Single State Exemption.

Section 27-36A-19Single state exemption.  (a) The commissioner may exempt specific product forms or product lines of a domestic company that is licensed and doing business only in the State of Alabama from the requirements of Section 27-36A-15 provided: (1) The commissioner has issued an exemption in writing to the company and has not subsequently revoked the exemption in writing. (2) The company computes reserves using assumptions and methods used prior to the operative date of the valuation manual in addition to any requirements established by the commissioner and promulgated by regulation. (b) For any company granted an exemption under this section, Sections 27-36A-4(a), 27-36A-5, 27-36A-6, 27-36A-7, 27-36A-8, 27-36A-9, 27-36A-10, 27-36A-11, 27-36A-12, 27-36A-13, and 27-36A-14 shall be applicable. With respect to any company applying this exemption, any reference to Section 27-36A-15 found in Sections 27-36A-4(b), 27-36A-5, 27-36A-6, 27-36A-7, 27-36A-8, 27-36A-9, 27-36A-10, 27-36A-11, 27-36A-12, 27-36A-13, and 27-36A-14 shall not be applicable. (Act 2016-411, §2.)
AL Code § 27-36A-20 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 36A - Standard Valuation Law.|Section 27-36A-20 - Small Company Alternative Valuation.

Section 27-36A-20Small company alternative valuation. (a) A company calculating reserves under this section shall calculate reserves for ordinary life insurance, accident and health insurance contracts, credit life contracts, group life contracts, annuities, or deposit-type contracts in this state as if the policies were issued before the operative date of the valuation manual. For policies issued after the operative date of the valuation manual, any mortality and interest rates defined by the valuation manual for net premium reserves shall be used. A company calculating reserves under this section shall comply with Section 27-36A-4(a) instead of Section 27-36A-4(b) and meet all of the following conditions: (1) The company has less than three hundred million dollars ($300,000,000) of ordinary life premium. (2) If the company is a member of a group of life insurers, the group has combined ordinary life premium of less than six hundred million dollars ($600,000,000). (3) A universal life policy with a secondary guarantee issued after the operative date of the valuation manual meets the definition of a non-material secondary guarantee universal life product as defined in the valuation manual. (b) Each exemption or lack of exemption pursuant to this section applies to policies issued or assumed in the current year and to all future valuation dates for those policies. (c) For purposes of subdivisions (a)(1) and (a)(2), ordinary life premium is measured as direct premium plus reinsurance assumed from an unaffiliated company, as reported in the prior calendar year annual statement. (d) An Alabama-domiciled company intending to calculate reserves as described in this section must file a statement with the commissioner prior to July 1 of each year certifying that these conditions are met for the current calendar year based on premiums and other values from the prior financial statements. The commissioner may reject the statement prior to September 1 if the commissioner specifically identifies risk in the affected policies that requires a principle-based valuation and require the company to comply with the valuation manual requirements. (e) A company that reports reserves using the alternative valuation shall also be exempt from the principle-based reserves corporate governance requirements, certification of effectiveness of principle-based reserves internal controls, and a principle-based reserves valuation report. (Act 2016-411, p. 1108, §2; Act 2021-397, §1.)
AL Code § 27-37-2 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 37 - Assets.|Section 27-37-2 - Assets - Exclusions.

Section 27-37-2Assets - Exclusions. In addition to assets impliedly excluded by the provisions of Section 27-37-1, the following expressly shall not be allowed as assets in any determination of the financial condition of an insurer: (1) Good will, trade names, and other like intangible assets; (2) Advances to officers, directors, and controlling stockholders, other than policy loans, unless the same are secured by collateral satisfactory to the commissioner, and advances to employees, agents, and other persons on personal security only; (3) Stock of such insurer owned by it, or any equity therein, or loans secured thereby or any material proportionate interest in such stock acquired, or held, through the ownership by such insurer of an interest in another firm, corporation, or business unit; (4) Furniture, fixtures, furnishings, safes, vehicles, libraries, stationery, literature, and supplies, except: a. Such personal property as is required through foreclosure of chattel mortgages under loans insured or guaranteed under provisions of the National Housing Act or any act of Congress relating to veterans benefits; b. Such as is reasonably necessary for the maintenance and operation of real estate held by it other than real estate for home office, branch office, and similar purposes; and c. In the case of title insurers, abstract plant and equipment not to exceed 50 percent of the paid-in capital stock of such title insurer; and (5) The amount, if any, by which the aggregate book value of investments as carried in the ledger assets of the insurer exceeds the aggregate value thereof, as determined under this title. (Acts 1971, No. 407, p. 707, §747.)
AL Code § 27-37-3 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 37 - Assets.|Section 27-37-3 - Assets and Liabilities as Deductions.

Section 27-37-3Assets and liabilities as deductions. Assets may be allowed as deductions from corresponding liabilities, and liabilities may be charged as deductions from assets and deductions from assets may be charged as liabilities in accordance with the form of an annual statement applicable to the insurer as prescribed by the commissioner or otherwise in his discretion. (Acts 1971, No. 407, p. 707, §746.)
AL Code § 27-37-4 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 37 - Assets.|Section 27-37-4 - Disallowance of Assets or Credits for Deception.

Section 27-37-4Disallowance of assets or credits for deception. (a) The commissioner shall disallow as an asset or as a credit against liabilities any reinsurance found by him after a hearing thereon to have been arranged for on a temporary basis for the purpose principally of deception as to the ceding insurer's financial condition as at the date of any financial statement of the insurer. Reinsurance of any substantial part of the insurer's outstanding risks contracted for in fact within 90 days prior to the date of any such financial statement and cancelled in fact within 90 days after the date of such statement shall prima facie be deemed to have been arranged for the purpose of deception within the intent of this section. (b) The commissioner shall disallow as an asset any deposit, funds, or other assets of the insurer found by him after a hearing thereon: (1) Not to be in good faith the property of the insurer; (2) Not freely subject to withdrawal or liquidation by the insurer at any time for the payment or discharge of claims or other obligations arising under its policies; and (3) To be resulting from arrangements made principally for the purpose of deception as to the insurer's financial condition as at the date of any financial statement of the insurer. (c) No such disallowance of assets or credits shall be valid unless made by the commissioner after a hearing of which notice was given the insurer within six months after the date the financial statement of the insurer as to which such deception is claimed was filed with the commissioner. (d) The commissioner may suspend or revoke the certificate of authority of any insurer which has knowingly been a party to any such deception or attempt thereat. (Acts 1971, No. 407, p. 707, §748.)
AL Code § 27-37-5 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 37 - Assets.|Section 27-37-5 - Valuation - Bonds and Other Evidences of Debt.

Section 27-37-5Valuation - Bonds and other evidences of debt. (a) All bonds or other evidences of debt having a fixed term and rate of interest held by an insurer shall, if amply secured and not in default as to principal or interest, be valued as follows: (1) If purchased at par, at the par value; (2) If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made or, in lieu of such method, according to such accepted method of valuation as is approved by the commissioner; (3) Purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase, plus actual brokerage, transfer, postage, or express charges paid in the acquisition of such securities; and (4) Unless otherwise provided by valuation established or approved by the commissioner, no such security shall be carried at above the call price for the entire issue during any period within which the security may be so called. (b) The commissioner shall have full discretion in determining the method of calculating values according to the rules set forth in this section, but no such method or valuation shall be inconsistent with any applicable valuation or method currently accepted and in use among insurers in general. (Acts 1971, No. 407, p. 707, §749.)
AL Code § 27-37-6 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 37 - Assets.|Section 27-37-6 - Valuation - Other Securities; Preferred or Guaranteed Stocks or Shares.

Section 27-37-6Valuation - Other securities; preferred or guaranteed stocks or shares. (a) Securities, other than those referred to in Section 27-37-5, held by an insurer shall be valued, in the discretion of the commissioner, at their market value, or at their appraised value or at prices determined by him as representing their fair market value. (b) Preferred or guaranteed stocks or shares, while paying full dividends, may be carried at a fixed value in lieu of market value, at the discretion of the commissioner and in accordance with such method of valuation as he may approve. (c) No valuation under this section shall be inconsistent with any applicable valuation or method currently accepted and in use among insurers in general. (Acts 1971, No. 407, p. 707, §750.)
AL Code § 27-37-7 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 37 - Assets.|Section 27-37-7 - Valuation - Real Property and Personal Property Acquired Pursuant to Chattel Mortgages.

Section 27-37-7Valuation - Real property and personal property acquired pursuant to chattel mortgages. (a) Real property acquired pursuant to a mortgage loan or contract for sale, in the absence of a recent appraisal deemed by the commissioner to be reliable, shall not be valued at an amount greater than the unpaid principal of the defaulted loan or contract at the date of such acquisition, together with any taxes and expenses paid or incurred in connection with such acquisition, and the cost of improvements thereafter made by the insurer and any amounts thereafter paid by the insurer on assessments levied for improvements in connection with the property. (b) Other real property held by an insurer shall not be valued at an amount in excess of fair value as determined by recent appraisal. If valuation is based on an appraisal more than three years old, the commissioner may at his discretion call for and require a new appraisal in order to determine fair value. (c) Personal property acquired pursuant to chattel mortgages shall not be valued at an amount greater than the unpaid balance of principal on the defaulted loan at the date of acquisition, together with taxes and expenses incurred in connection with such acquisition or the fair value of such property, whichever amount is the lesser. (Acts 1971, No. 407, p. 707, §751.)