reglab/housing_qa huggingface dataset:
AL Code § 27-27-6 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-6 - Solicitation Permit - Approval or Denial.

Section 27-27-6Solicitation 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 (b) of this section, if he finds that: (1) The application is complete; (2) The documents therewith filed are proper in form; and (3) The proposed articles of incorporation of any proposed domestic insurer comply with this title and are not in conflict with the Constitution and laws of the United States or of this state; He shall give notice to the applicant that he will approve and file the articles of incorporation, if a proposed corporation, and issue a solicitation permit, stating the terms to be contained therein, upon the filing of any bond required by Sections 27-27-10 or 27-27-16. (b) If the commissioner does not so find, or finds that any proposed sale of securities would be, or tend to be, fraudulent or inequitable as to present or proposed security holders or investors, or if he finds that any of the individuals associated or to be associated in the insurer, corporation, snydicate, association, partnership, firm, organization, or financing are not of good character, or that the insurer if formed or, if an applicant for a certificate of authority, would not be able to qualify for a certificate of authority by reason of the provisions of subdivision (3) of Section 27-3-4, he shall give notice to the applicant that a solicitation permit will not be granted, stating the grounds therefor, return any proposed articles of incorporation to the applicant and refund to the applicant all sums so deposited, except the fee for application for a solicitation permit. (Acts 1971, No. 407, p. 707, §502.)
AL Code § 27-27-8 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-8 - Solicitation Permit - Effect of Granting Permit.

Section 27-27-8Solicitation 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 any such insurer, corporation, syndicate, association, partnership, firm, organization, or financing, and the existence of the permit shall not be advertised or used as an inducement in any solicitation. The commissioner shall place the substance of this section in boldface type at the top of each solicitation permit issued by him. (Acts 1971, No. 407, p. 707, §504.)
AL Code § 27-27-9 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-9 - Solicitation Permit - Modification or Revocation.

Section 27-27-9Solicitation 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 provision of this title, or of the terms of the permit, or of any proper order of the commissioner or for misrepresentation in the offering or sale of securities or policies under the permit. (b) The commissioner shall revoke the solicitation permit if requested in writing by a majority of the syndicate members, or by a majority of the incorporators and two-thirds of the subscribers to stock or applicants for insurance in the proposed incorporated insurer or corporation or if he is so requested by a majority of the subscribers of a proposed reciprocal insurer. (Acts 1971, No. 407, p. 707, §505.)
AL Code § 27-27-10 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-10 - Solicitation Permit - Bond or Deposit in Lieu Thereof; Waiver of Same.

Section 27-27-10Solicitation 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 the applicant therefor has filed with him a corporate surety bond in the penalty of $15,000.00 in favor of the State of Alabama and for the use and benefit of the state and of proposed Alabama investors in and creditors of the proposed organization. (b) The bond shall be conditioned upon the payment of costs incurred by the state in event of any legal proceedings for liquidation or dissolution of the proposed organization before completion of organization or in event a certificate of authority is not granted and upon a full accounting for funds received until the proposed insurer has been granted its certificate of authority or until the proposed corporation, syndicate, organization, or financing has been completed as defined in the solicitation permit. (c) In lieu of filing such bond, the applicant may deposit with the State Treasurer through the commissioner $15,000.00 in cash, or its equivalent, or in United States government bonds at par value, to be held in trust under the same conditions as required for the bond. (d) The commissioner may, in his discretion, waive the requirement for a bond or deposit in lieu thereof if the solicitation permit provides that: (1) The proposed securities are to be distributed solely and finally to those few persons who are the active promoters intimate to the formation of the insurer or other corporation, syndicate, or organization; or (2) The securities are to be issued in connection with subsequent financing as provided in Section 27-27-14. (e) Any bond filed or deposited, or remaining portion thereof, held under this section shall be released and discharged upon settlement or termination of all liabilities against it. (Acts 1971, No. 407, p. 707, §506.)
AL Code § 27-27-11 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-11 - Licensing of Securities Salesmen.

Section 27-27-11Licensing 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 Alabama Securities Act. (Acts 1971, No. 407, p. 707, §507.)
AL Code § 27-27-12 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-12 - Deposit of Solicitation Permit Funds in Escrow - Requirement.

Section 27-27-12Deposit 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 the permit holder, be deposited and held in escrow in a bank or trust company located in this state under an agreement approved by the commissioner. (b) No part of such funds shall be withdrawn from such deposit, except: (1) For the payment of promotion, sales, and organization expenses as authorized by the solicitation permit, and funds for such purposes may be withheld from the deposit; (2) For the purpose of making any deposit with the commissioner required for the issuance of a certificate of authority to an insurer; (3) If the proposed organization is not to be an insurer, upon completion of payments on securities subscriptions made under the solicitation permit and deposit or appropriation of such funds to the purposes specified in the solicitation permit; or (4) For making of refunds as provided in Section 27-27-13. (c) When the commissioner has issued a certificate of authority to an insurer, any such funds remaining in escrow for its account shall be released to the insurer. (d) The commissioner may waive compliance with this section as to funds required to be deposited in escrow or trust in similar institutions and for similar purposes as set forth in this section pursuant to any other law of this state. (Acts 1971, No. 407, p. 707, §508.)
AL Code § 27-27-13 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-13 - Deposit of Solicitation Permit Funds in Escrow - Withdrawal and Refund.

Section 27-27-13Deposit 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 subscriptions, less that part of such sums paid in as has been allowed and used for promotion, sales, and organization expenses, and shall dissolve the proposed domestic insurer, corporation, syndicate, or organization if: (1) It fails to complete its organization or financing and obtain full payment for subscriptions and, if to be an insurer, it fails to secure its certificate of authority, all before expiration of the solicitation permit; or (2) The commissioner revokes the solicitation permit. (Acts 1971, No. 407, p. 707, §509.)
AL Code § 27-27-14 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-14 - Solicitation Permit for Subsequent Financing.

Section 27-27-14Solicitation 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 any other type of organization existing for the same purpose, after: (1) It has received a certificate of authority, if an insurer, in this or any other state; or (2) It has completed its initial organization and financing, if a corporation, syndicate, or other organization other than an insurer, shall in this state solicit or receive funds in exchange for its securities, other than when combining and selling, for the account of its stockholders entitled thereto, fractional shares to which they become entitled through a stock dividend to existing stockholders until it has applied to the commissioner for, and has been granted, a solicitation permit. (b) The commissioner shall issue such a permit unless he finds: (1) That the funds proposed to be secured are excessive in amount for the purposes intended; (2) That the proposed securities or the manner of their distribution are inequitable; or (3) That the offering or issuance of the securities would be unfair to existing or prospective holders of securities of the same insurer, corporation, syndicate, or organization. (c) Any such solicitation permit granted by the commissioner shall be for such duration and shall contain such terms, and be issued upon, such conditions as the commissioner may reasonably specify or require for the protection of existing or proposed policyholders or investors. (d) This section is supplemental to other laws of this state applicable to the sale of securities. (Acts 1971, No. 407, p. 707, §510.)
AL Code § 27-27-15 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-15 - Domestic Mutual Insurers - Authorization to Transact Insurance.

Section 27-27-15Domestic 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 in subsection (b) of this section. (b) When applying for an original certificate of authority, the insurer must be otherwise qualified therefor under this title and must have received and accepted bona fide applications as to substantial insurable subjects for insurance coverage of a substantial character of the kind of insurance proposed to be transacted, must have collected in cash the full premium therefor at a rate not less than that usually charged by other insurers for comparable coverages, must have surplus funds on hand and deposited as of the date such insurance coverages are to become effective or, in lieu of such applications, premiums and surplus and may deposit surplus, all in accordance with that part of the following schedule which applies to the one kind of insurance the insurer proposes to transact: (a) (b)(c)(d)(e)(f)(g)(h) Kind of insuranceMinimum no. of applicants acceptedMinimum no. of subjects coveredMinimum premium collectedMinimum amount of insurance each subjectMaximum amount of insurance each subject (5)Deposit of minimum surplus funds (6)Deposit of surplus in lieu (6) Life (1)500500annual$1000$2500$50,000$100,000 Disability (2)500500quarterly$10 (weekly indem.)$25 (weekly indem.)$50,000$100,000 Property (3)100250annual$1000$3000$100,000$200,000 Casualty (4)250500annual$1000$10,000$150,000$200,000 Casualty with workmen's compensation2501500quarterly$1000$10,000$200,000$300,000 The following provisos are respectively applicable to the foregoing schedule and provisions as indicated by like arabic numerals appearing in such schedule: (1) No group insurance or term policies for terms of less than 10 years shall be included; (2) No group, blanket, or family plans of insurance shall be included. In lieu of weekly indemnity a like premium value in medical, surgical and hospital benefits may be provided. Any accidental death or dismemberment benefit provided shall not exceed $2,500.00; (3) Only insurance of the owner's interest in real property may be included; (4) Must include insurance of legal liability for bodily injury and property damage, to which the maximum and minimum insured amounts apply; (5) The maximums provided for in column (f) are net of applicable reinsurance; and (6) The deposit of surplus in the amount specified in columns (g) and (h) must thereafter be maintained unimpaired. The deposit is subject to the provisions of Chapter 6 of this title. (Acts 1971, No. 407, p. 707, §511.)
AL Code § 27-27-16 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-16 - Domestic Mutual Insurers - Bond or Deposit in Lieu Thereof.

Section 27-27-16Domestic 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 insurer shall file with the commissioner a corporate surety bond in the penalty of $15,000.00 in favor of the State of Alabama and for the use and benefit of the state and of applicant members and creditors of the corporation. The bond shall be conditioned as follows: (1) Upon payment of any loss suffered by applicants who have cancelled or lapsed existing insurance policies due to misrepresentation by the incorporators or by persons soliciting such applications under authorization by the corporation, to the effect that the making of such application for insurance and prepayment of premiums in such proposed insurer provides insurance protection prior to issuance of a certificate of authority to such insurer by the commissioner; and (2) That in event the corporation fails to complete its organization and secure a certificate of authority issued by the commissioner within one year after the date of its certificate of incorporation, all premiums collected in advance from applicant members will be promptly returned to them, all other indebtedness of the corporation, other than any compensation to directors, officers, or solicitors of insurance applications, will be paid and for payment of costs incurred by the state in event of any legal proceedings for liquidation or dissolution of the corporation. (b) In lieu of such a bond, the incorporators may deposit with the commissioner $15,000.00 in cash, or its equivalent, or in United States government bonds at par value, to be held in trust upon the same conditions as required for the bond. (c) Any such bond filed or deposit, or remaining portion thereof, held under this section shall be released and discharged upon settlement and termination of all liabilities against it under this section. (Acts 1971, No. 407, p. 707, §512.)
AL Code § 27-27-17 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-17 - Domestic Mutual Insurers - Solicitation of Qualifying Applications for Insurance.

Section 27-27-17Domestic 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 mutual insurer may commence solicitation of such requisite applications for insurance policies as they may accept and may receive deposits of premiums thereon. (b) All such applications shall be in writing signed by the applicant, covering subjects of insurance resident, located or to be performed in this state. (c) All such applications shall provide that: (1) Issuance of the policy is contingent upon the insurer qualifying for and receiving a certificate of authority; (2) No insurance is in effect unless and until the certificate of authority has been issued; and (3) The prepaid premium or deposit and membership or policy fee, if any, shall be refunded in full to the applicant if organization is not completed and the certificate of authority is not issued and received by the insurer before a specified reasonable date, which date shall be not later than one year after the date of the certificate of incorporation. (d) All qualifying premiums collected shall be in cash. (e) Solicitation for such qualifying applications for insurance shall be by licensed agents of the corporation, and the commissioner shall, upon the corporation's application therefor, issue temporary agent's licenses expiring on the date specified pursuant to subdivision (c) (3) of this section to individuals qualified as for a resident agent's license, except as to the taking or passing of an examination. The commissioner may suspend or revoke any such license for any of the causes and pursuant to the same procedures as are applicable to suspension or revocation of licenses of agents in general under Chapter 7 of this title. (Acts 1971, No. 407, p. 707, §513.)
AL Code § 27-27-18 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-18 - Domestic Mutual Insurers - Deposit in Trust of Premiums or Fees on Qualifying Applications.

Section 27-27-18Domestic 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 a bank or trust company in this state under a written trust agreement approved by the commissioner and consistent with this section and with subdivision (c) (3) of Section 27-27-17. The corporation shall file an executed copy of such trust agreement with the commissioner. (b) Upon issuance to the corporation of a certificate of authority as an insurer for the kind of insurance for which such applications were solicited, all funds so held in trust shall become the funds of the insurer, and the insurer shall, thereafter in due course, issue and deliver its policies for which premiums had been paid and accepted. The insurance provided by such policies shall be effective as of the date of the certificate of authority or thereafter as provided by the respective policies. (Acts 1971, No. 407, p. 707, §514.)
AL Code § 27-27-19 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-19 - Domestic Mutual Insurers - Failure to Complete Organization.

Section 27-27-19Domestic 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, date of its certificate of incorporation, the corporation shall transact no further business, and the commissioner shall return, or cause to be returned, to the persons entitled thereto all advance deposits or payments of premiums held in trust under Section 27-27-18. (Acts 1971, No. 407, p. 707, §515.)
AL Code § 27-27-20 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-20 - Domestic Mutual Insurers - Authorization to Transact Additional Kinds of Insurance.

Section 27-27-20Domestic 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 insurance as are permitted under Section 27-3-6, while otherwise in compliance with this title and while maintaining unimpaired surplus funds in an amount not less than the amount of paid-in capital stock required of a domestic stock insurer transacting like kinds of insurance, subject further to the additional expendable surplus requirements of Section 27-3-8 applicable to such a stock insurer. (Acts 1971, No. 407, p. 707, §516.)
AL Code § 27-27-21 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 27 - Organization and Corporate Procedures of Stock and Mutual Insurers.|Section 27-27-21 - Domestic Mutual Insurers - Membership.

Section 27-27-21Domestic 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 of such membership, and the policy shall so specify. (b) Any individual, or firm or any public or private corporation, board, or association in this state, or elsewhere, may make application, enter into agreements for, and hold policies in any such mutual insurer. Any officer, stockholder, trustee, or local representative of any such corporation, board, association, or estate may be recognized as acting for, or on its behalf for, the purpose of such membership, but shall not be personally liable upon such contract of insurance by reason of acting in such representative capacity. The right of any corporation organized under the laws of this state to participate as a member of any such insurer is declared to be incidental to the purpose for which the corporation is organized and as much granted as the rights and powers expressly conferred. (c) The right of certain governmental bodies or agencies of this state to become, and be, policyholders of mutual insurers shall be as provided by the laws of this state governing such bodies or agencies. (Acts 1971, No. 407, p. 707, §517.)