reglab/housing_qa huggingface dataset:
AL Code § 27-5A-4 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5A - Reinsurance Intermediaries.|Section 27-5A-4 - Required Contract Provisions; Reinsurance Intermediary-Brokers.

Section 27-5A-4Required contract provisions; reinsurance intermediary-brokers. Transactions between a reinsurance intermediary-broker and the insurer it represents in that capacity shall only be entered into pursuant to a written authorization, specifying the responsibilities of each party. The authorization shall, at a minimum, provide that: (1) The insurer may terminate the reinsurance intermediary-broker's authority at any time. (2) The reinsurance intermediary-broker shall render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges, and other fees received by, or owing, to the reinsurance intermediary-broker, and remit all funds due to the insurer within 30 days of receipt. (3) All funds collected for the insurer's account shall be held by the reinsurance intermediary-broker in a fiduciary capacity in a bank which is a qualified U.S. financial institution as defined herein. (4) The reinsurance intermediary-broker shall comply with Section 27-5A-5. (5) The reinsurance intermediary-broker shall comply with the written standards established by the insurer for the cession or retrocession of all risks. (6) The reinsurance intermediary-broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded. (Acts 1993, No. 93-673, p. 1215, §4.)
AL Code § 27-5A-5 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5A - Reinsurance Intermediaries.|Section 27-5A-5 - Books and Records; Reinsurance Intermediary-Brokers.

Section 27-5A-5Books and records; reinsurance intermediary-brokers. (a) For at least 10 years after expiration of each contract of reinsurance transacted by the reinsurance intermediary-broker, the reinsurance intermediary-broker shall keep a complete record for each transaction showing all of the following: (1) The type of contract, limits, underwriting restrictions, classes, or risks and territory. (2) Period of coverage, including effective and expiration dates, cancellation provisions, and notice required of cancellation. (3) Reporting and settlement requirements of balances. (4) Rate used to compute the reinsurance premium. (5) Names and addresses of assuming reinsurers. (6) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary-broker. (7) Related correspondence and memoranda. (8) Proof of placement. (9) Details regarding retrocessions handled by the reinsurance intermediary-broker including the identity of retrocessionaires and percentage of each contract assumed or ceded. (10) Financial records, including, but not limited to, premium and loss accounts. (11) When the reinsurance intermediary-broker procures a reinsurance contract on behalf of a licensed ceding insurer: a. Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk. b. If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative. (b) The insurer shall have access and the right to copy and audit all accounts and records maintained by the reinsurance intermediary-broker related to its business in a form usable by the insurer. (Acts 1993, No. 93-673, p. 1215, §5.)
AL Code § 27-5A-6 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5A - Reinsurance Intermediaries.|Section 27-5A-6 - Duties of Insurers Utilizing the Services of a Reinsurance Intermediary-Broker.

Section 27-5A-6Duties of insurers utilizing the services of a reinsurance intermediary-broker. (a) An insurer shall not engage the services of any person, firm, association, or corporation to act as a reinsurance intermediary-broker on its behalf unless the person is licensed as required by subsection (a) of Section 27-5A-3. (b) An insurer may not employ an individual who is employed by a reinsurance intermediary-broker with which it transacts business, unless such reinsurance intermediary-broker is under common control with the insurer and subject to Chapter 29, Title 27. (c) The insurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-broker with which it transacts business. (Acts 1993, No. 93-673, p. 1215, §6.)
AL Code § 27-5A-8 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5A - Reinsurance Intermediaries.|Section 27-5A-8 - Prohibited Acts.

Section 27-5A-8Prohibited acts. The reinsurance intermediary-manager shall not: (1) Cede retrocessions on behalf of the reinsurer, except that the reinsurance intermediary-manager may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for such retrocessions. The guidelines shall include a list of reinsurers with which any automatic agreements are in effect, and for each such reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules. (2) Commit the reinsurer to participate in reinsurance syndicates. (3) Appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which the producer is appointed. (4) Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer's policyholder's surplus as of December 31 of the last complete calendar year. (5) Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report shall be promptly forwarded to the reinsurer. (6) Jointly employ an individual who is employed by the reinsurer unless such reinsurance intermediary-manager is under common control with the reinsurer subject to the Chapter 29, Title 27. (7) Appoint a sub-reinsurance intermediary-manager. (Acts 1993, No. 93-673, p. 1215, §8.)
AL Code § 27-5A-9 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5A - Reinsurance Intermediaries.|Section 27-5A-9 - Duties of Reinsurers Utilizing Services of Reinsurance Intermediary-Manager.

Section 27-5A-9Duties of reinsurers utilizing services of reinsurance intermediary-manager. (a) A reinsurer shall not engage the services of any person, firm, association, or corporation to act as a reinsurance intermediary-manager on its behalf unless such person is licensed as required by subsection (b) of Section 27-5A-3. (b) The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-manager which such reinsurer has engaged prepared by an independent certified accountant in a form acceptable to the commissioner. (c) If a reinsurance intermediary-manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary-manager. This opinion shall be in addition to any other required loss reserve certification. (d) Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the reinsurance intermediary-manager. (e) Within 30 days of termination of a contract with a reinsurance intermediary-manager, the reinsurer shall provide written notification of such termination to the commissioner. (f) A reinsurer shall not appoint to its board of directors any officer, director, employee, controlling shareholder, or subproducer of its reinsurance intermediary-manager. This subsection shall not apply to relationships governed by Chapter 29, Title 27. (Acts 1993, No. 93-673, p. 1215, §9.)
AL Code § 27-5A-10 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5A - Reinsurance Intermediaries.|Section 27-5A-10 - Examination Authority.

Section 27-5A-10Examination authority. (a) A reinsurance intermediary shall be subject to examination by the commissioner. The commissioner shall have access to all books, bank accounts, and records of the reinsurance intermediary in a form usable to the commissioner. (b) A reinsurance intermediary-manager may be examined as if it were the reinsurer. (Acts 1993, No. 93-673, p. 1215, §10.)
AL Code § 27-5A-11 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5A - Reinsurance Intermediaries.|Section 27-5A-11 - Penalties and Liabilities.

Section 27-5A-11Penalties and liabilities. (a) A reinsurance intermediary, insurer, or reinsurer found by the commissioner, after a hearing conducted in accordance with Section 27-2-28, to be in violation of this chapter, shall: (1) For each separate violation, pay a penalty in an amount not exceeding $5,000. (2) Be subject to revocation or suspension of its license. (3) If a violation was committed by the reinsurance intermediary, the reinsurance intermediary shall make restitution to the insurer, reinsurer, rehabilitator, or liquidator of the insurer or reinsurer for the net losses incurred by the insurer or reinsurer attributable to such violation. (b) The decision, determination, or order of the commissioner pursuant to subsection (a) of this section shall be subject to judicial review pursuant to Section 27-2-32. (c) Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided in the insurance law. (d) Nothing contained in this chapter is intended to or shall in any manner limit or restrict the rights of policyholders, claimants, creditors, or other third parties or confer any rights to those persons. (Acts 1993, No. 93-673, p. 1215, §11.)
AL Code § 27-5A-12 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5A - Reinsurance Intermediaries.|Section 27-5A-12 - Rules and Regulations.

Section 27-5A-12Rules and regulations. The commissioner may adopt reasonable rules and regulations for the implementation and administration of the provisions of this chapter. (Acts 1993, No. 93-673, p. 1215, §12.)
AL Code § 27-5A-13 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5A - Reinsurance Intermediaries.|Section 27-5A-13 - Utilization of Services of Reinsurance Intermediary.

Section 27-5A-13Utilization of services of reinsurance intermediary. No insurer or reinsurer may continue to utilize the services of a reinsurance intermediary on and after May 17, 1993, unless utilization is in compliance with this chapter. (Acts 1993, No. 93-673, p. 1215, §15.)
AL Code § 27-5B-1 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5B - Reinsurance.|Section 27-5B-1 - Purpose.

Section 27-5B-1Purpose.  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 intent is to ensure adequate regulation of insurers and reinsurers and adequate protection for those to whom they owe obligations. In furtherance of that state interest, the Legislature provides a mandate that upon the insolvency of a non-U.S. insurer or reinsurer that provides security to fund its U.S. obligations in accordance with this chapter, the assets representing the security shall be maintained in the United States and claims shall be filed with and valued by the Commissioner of Insurance with regulatory oversight, and the assets shall be distributed, in accordance with the insurance laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic U.S. insurance companies. The Legislature declares that the matters contained in this chapter are fundamental to the business of insurance in accordance with 15 U.S.C. §§ 1011-1012. (Act 2013-209, p. 463, §1.)
AL Code § 27-5B-2 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5B - Reinsurance.|Section 27-5B-2 - Reinsurance Permitted.

Section 27-5B-2Reinsurance 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 authorized to insure. (b) An insurer authorized under this title may reinsure all, or any part, of any particular risk with any solvent insurer. (Act 2013-209, p. 463, §1.)
AL Code § 27-5B-3 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5B - Reinsurance.|Section 27-5B-3 - Credit Allowed a Domestic Ceding Insurer.

Section 27-5B-3Credit allowed a domestic ceding insurer.  (a) 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 when the reinsurer meets the requirements of Section 27-5B-4, 27-5B-5, 27-5B-6, 27-5B-7, 27-5B-8, 27-5B-8.1, or 27-5B-9. (b) The commissioner may adopt by rule specific additional requirements relating to any of the following: (1) The valuation of assets or reserve credits. (2) The amount and forms of security supporting reinsurance arrangements described in subsection (b) of Section 27-5B-19. (3) The circumstances pursuant to which credit shall be reduced or eliminated. (c) Credit shall be allowed under Section 27-5B-4, 27-5B-5, or 27-B5-6 only as respects cessions of those kinds or classes of business which the assuming insurer is licensed or otherwise permitted to write or assume in its state of domicile or, in the case of a U.S. branch of an alien assuming insurer, in the state through which it is entered and licensed to transact insurance or reinsurance. Credit shall be allowed under Section 27-5B-6 or 27-5B-7 only if the applicable requirements of Section 27-5B-10 have been satisfied. (Act 2013-209, p. 463, §1; Act 2021-235, §1.)
AL Code § 27-5B-4 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5B - Reinsurance.|Section 27-5B-4 - Licensed Reinsurer.

Section 27-5B-4Licensed 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. (Act 2013-209, p. 463, §1.)
AL Code § 27-5B-5 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5B - Reinsurance.|Section 27-5B-5 - Accredited Reinsurer.

Section 27-5B-5Accredited 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. In order to be eligible for accreditation, a reinsurer must do all of the following: (1) File with the commissioner evidence of its submission to this state's jurisdiction. (2) Submit to this state's authority to examine its books and records. (3) Be licensed to transact insurance or reinsurance in at least one state, or in the case of a U.S. branch of an alien assuming insurer, be entered through and licensed to transact insurance or reinsurance in at least one state. (4) File annually with the commissioner a copy of its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement. (5) Demonstrate to the satisfaction of the commissioner that it has adequate financial capacity to meet its reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers. An assuming insurer is deemed to meet this requirement as of the time of its application if it maintains a surplus as regards policyholders in an amount not less than twenty million dollars ($20,000,000) and its accreditation has not been denied by the commissioner within 90 days after submission of its application. (Act 2013-209, p. 463, §1.)
AL Code § 27-5B-6 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5B - Reinsurance.|Section 27-5B-6 - Reinsurer Domiciled in State With Substantially Similar Law.

Section 27-5B-6Reinsurer 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. branch of an alien assuming insurer is entered through, a state that employs standards regarding credit for reinsurance substantially similar to those applicable under this chapter and the assuming insurer or U.S. branch of an alien assuming insurer does both of the following: (1) Maintains a surplus as regards policyholders in an amount not less than twenty million dollars ($20,000,000). (2) Submits to the authority of this state to examine its books and records. (b) The requirement of subdivision (1) of subsection (a) does not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system. (Act 2013-209, p. 463, §1.)
AL Code § 27-5B-9 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5B - Reinsurance.|Section 27-5B-9 - Credit for Reinsurance Required by Law.

Section 27-5B-9Credit 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, 27-5B-8, or 27-5B-8.1, but only as to the insurance of risks located in jurisdictions where the reinsurance is required by applicable law or regulation of that jurisdiction.  (Act 2013-209, p. 463, §1; Act 2021-235, §1.)
AL Code § 27-5B-10 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5B - Reinsurance.|Section 27-5B-10 - Reinsurer Not Licensed, Accredited or Certified - Additional Reinsurance Agreement Requirements.

Section 27-5B-10Reinsurer 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 and 27-5B-7 shall not be allowed unless the assuming insurer agrees in the reinsurance agreements:  (1) That in the event of the failure of the assuming insurer to perform its obligations under the terms of the reinsurance agreement, the assuming insurer, at the request of the ceding insurer, shall submit to the jurisdiction of any court of competent jurisdiction in any state of the United States, will comply with all requirements necessary to give the court jurisdiction, and will abide by the final decision of the court or of any appellate court in the event of an appeal. (2) To designate the commissioner or a designated attorney as its true and lawful attorney upon whom may be served any lawful process in any action, suit, or proceeding instituted by or on behalf of the ceding insurer. (b) This section is not intended to conflict with or override the obligation of the parties to a reinsurance agreement to arbitrate their disputes, if this obligation is created in the agreement. (Act 2013-209, p. 463, §1.)
AL Code § 27-5B-11 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5B - Reinsurance.|Section 27-5B-11 - Reinsurer Not Licensed, Accredited, or Certified - Additional Trust Agreement Requirements.

Section 27-5B-11Reinsurer 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, 27-5B-6, or 27-5B-8.1, the credit permitted by Section 27-5B-7 or 27-5B-8 shall not be allowed unless the assuming insurer agrees in the trust agreements to the following conditions:  (1) Notwithstanding any other provisions in the trust instrument, if the trust fund is inadequate because it contains an amount less than the amount required by subsection (c) of Section 27-5B-7, or if the grantor of the trust has been declared insolvent or placed into receivership, rehabilitation, liquidation, or similar proceedings under the laws of its state or country of domicile, the trustee shall comply with an order of the commissioner with regulatory oversight over the trust or with an order of a court of competent jurisdiction directing the trustee to transfer to the commissioner with regulatory oversight all of the assets of the trust fund. (2) The assets shall be distributed by and claims shall be filed with and valued by the commissioner with regulatory oversight in accordance with the laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic insurance companies. (3) If the commissioner with regulatory oversight determines that the assets of the trust fund or any part thereof are not necessary to satisfy the claims of the U.S. ceding insurers of the grantor of the trust, the assets or part thereof shall be returned by the commissioner with regulatory oversight to the trustee for distribution in accordance with the trust agreement. (4) The grantor shall waive any right otherwise available to it under U.S. law that is inconsistent with this provision. (Act 2013-209, p. 463, §1; Act 2021-235, §1.)
AL Code § 27-5B-12 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5B - Reinsurance.|Section 27-5B-12 - Accredited or Certified Reinsurer Ceasing to Meet Requirements.

Section 27-5B-12Accredited 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 or certification. (b) The commissioner must give the reinsurer notice and opportunity for hearing. The suspension or revocation may not take effect until after the commissioner's order on hearing, unless any of the following occurs: (1) The reinsurer waives its right to hearing. (2) The commissioner's order is based on regulatory action by the reinsurer's domiciliary jurisdiction or the voluntary surrender or termination of the reinsurer's eligibility to transact insurance or reinsurance business in its domiciliary jurisdiction or in the primary certifying state of the reinsurer under subsection (f) of Section 27-5B-8. (3) The commissioner finds that an emergency requires immediate action and a court of competent jurisdiction has not stayed the commissioner's action. (c) While a reinsurer's accreditation or certification is suspended, no reinsurance contract issued or renewed after the effective date of the suspension qualifies for credit except to the extent that the reinsurer's obligations under the contract are secured in accordance with Section 27-5B-14. If a reinsurer's accreditation or certification is revoked, no credit for reinsurance may be granted after the effective date of the revocation except to the extent that the reinsurer's obligations under the contract are secured in accordance with subsection (e) of Section 27-5B-8 or Section 27-5B-14. (Act 2013-209, p. 463, §1.)
AL Code § 27-5B-13 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 5B - Reinsurance.|Section 27-5B-13 - Concentration Risk.

Section 27-5B-13Concentration 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 the commissioner within 30 days after reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, exceeds 50 percent of the domestic ceding insurer's last reported surplus to policyholders, or after it is determined that reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate that the exposure is safely managed by the domestic ceding insurer.  (b) A ceding insurer shall take steps to diversify its reinsurance program. A domestic ceding insurer shall notify the commissioner within 30 days after ceding to any single assuming insurer, or group of affiliated assuming insurers, more than 20 percent of the ceding insurer's gross written premium in the prior calendar year, or after it has determined that the reinsurance ceded to any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification shall demonstrate that the exposure is safely managed by the domestic ceding insurer. (Act 2013-209, p. 463, §1.)