reglab/statecodes huggingface dataset:
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 1 - General Provisions. › Section 27-2-27 - Witnesses and Evidence for Examination, Investigation, or Hearing - Compelling Testimony or Production of Documents, etc.; Immunity From Prosecution.

Section 27-2-27
Witnesses and evidence for examination, investigation, or hearing - Compelling testimony or production of documents, etc.; immunity from prosecution.
(a) If any individual asks to be excused from attending or testifying or from producing any books, papers, records, contracts, correspondence, or other documents in connection with any examination, hearing, or investigation being conducted by the commissioner or his examiner on the ground that the testimony or evidence required of him may tend to incriminate him or subject him to a penalty or forfeiture and shall, by the Attorney General, be directed to give such testimony or produce such evidence, he must nonetheless comply with such direction; but he shall not thereafter be prosecuted or subjected to any penalty or forfeiture for, or on account of, any transaction, matter or thing concerning which he may have so testified or produced evidence, and no testimony so given or evidence produced shall be received against him upon any criminal action, investigation, or proceeding; except, that no such individual so testifying shall be exempt from prosecution or punishment for any perjury committed by him in such testimony, and the testimony or evidence so given or produced shall be admissible against him upon any criminal action, investigation, or proceeding concerning such perjury; nor shall such individual be exempt from the refusal, suspension, or revocation of any license, permission, or authority conferred, or to be conferred, pursuant to this title.
(b) Any such individual may execute, acknowledge, and file in the department a statement expressly waiving such immunity or privilege in respect to any transaction, matter or thing specified in such statement, and thereupon, the testimony of such individual or such evidence in relation to such transaction, matter or thing may be received or produced before any judge, court, tribunal, grand jury, or otherwise; and, if so received or produced, such individual shall not be entitled to any immunity or privileges on account of any testimony he may so give or evidence so produced.
(Acts 1971, No. 407, p. 707, §42.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 1 - General Provisions. › Section 27-2-28 - Hearings - Power to Hold.

Section 27-2-28
Hearings - Power to hold.
(a) The commissioner may hold hearings for any purpose within the scope of this title deemed by him to be necessary.
(b) The commissioner shall hold a hearing if required by any provision, or upon written demand therefor by a person aggrieved by any act, threatened act or failure of the commissioner to act or by any report, rule, regulation, or order of the commissioner, other than an order for the holding of a hearing or an order on hearing or pursuant thereto. Any such demand shall specify the grounds to be relied upon as a basis for the relief to be demanded at the hearing, and unless postponed by mutual consent, the hearing shall be held within 30 days after receipt by the commissioner of demand therefor.
(c) Pending such hearing and decision thereon, the commissioner may suspend or postpone the effective date of his previous action.
(d) This section does not apply as to hearings provided for in Chapter 13 of this title.
(Acts 1971, No. 407, p. 707, §43.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 1 - General Provisions. › Section 27-2-29 - Hearings - Notice.

Section 27-2-29
Hearings - Notice.
(a) Except where a longer period of notice is provided by other provisions of this title relative to particular matters, not less than 10 days in advance the commissioner shall give notice of the time and place of the hearing, stating the matters to be considered thereat. If the persons to be given notice are not specified in the provision pursuant to which the hearing is held, the commissioner shall give such notice to all persons whose pecuniary interests are to be directly and immediately affected by such hearing.
(b) If any such hearing is to be held for consideration of rules and regulations of the commissioner or for the consideration of other matters which under subsection (a) of this section would otherwise require separate notices to more than 50 persons, in lieu of the notice required under such subsection the commissioner may give notice of the hearing by publication thereof in two or more newspapers of general circulation in this state at least once each week during the four weeks immediately preceding the week in which the hearing is to be held. The published notice shall state the time and place of the hearing and shall specify the matters to be considered thereat.
(c) All such notices, other than published notices, shall be given as provided in Section 27-2-18.
(d) This section does not apply as to hearings provided for in Chapter 13 of this title.
(Acts 1971, No. 407, p. 707, §44.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 1 - General Provisions. › Section 27-2-30 - Hearings - How Conducted.

Section 27-2-30
Hearings - How conducted.
(a) A hearing may be held in the department at Montgomery, Alabama, or at any other place in this state more convenient to parties and witnesses, as the commissioner determines. The commissioner or his deputy or examiner shall preside at the hearing and shall expedite the hearing and all procedures involved therein.
(b) Hearings may be closed to the public at the commissioner's discretion; except that a hearing shall be open to the public if so requested in writing by any party to the hearing.
(c) The commissioner shall allow any party to the hearing to appear in person and by counsel to be present during the giving of all evidence, to have a reasonable opportunity to inspect all documentary and other evidence, to examine and cross-examine witnesses, to present evidence in support of his interest, and to have subpoenas issued by the commissioner to compel attendance of witnesses and production of evidence in his behalf. The testimony may be taken orally or by deposition, and any party shall have such right of introducing evidence by deposition as may obtain in the circuit courts.
(d) Upon good cause shown, the commissioner shall permit to become a party to the hearing by intervention, if timely, only such persons who were not original parties thereto and whose pecuniary interests are to be directly and immediately affected by the commissioner's order made upon the hearing.
(e) Formal rules of pleading or evidence need not be observed at any hearing.
(f) Upon written request seasonably made by a party to the hearing and at such person's expense, the commissioner shall cause a full stenographic record of the proceedings to be made by a competent reporter. If transcribed, a copy of such stenographic record shall be furnished to the commissioner without cost to the commissioner or the state and shall be a part of the commissioner's record of the hearing. If so transcribed, a copy of such stenographic record shall be furnished to any other party to such hearing at the request and expense of such other party. If no stenographic record is made or transcribed, the commissioner shall prepare an adequate record of the evidence and of the proceedings.
(g) Upon written request setting forth the reasons therefor of a party to a hearing filed with the commissioner within 30 days after any order made pursuant to a hearing has been mailed or delivered to the persons entitled to receive the same, the commissioner may, in his discretion, grant a rehearing or reargument of any matter involved in such hearing. Notice of such rehearing or reargument shall be given as provided in Section 27-2-29.
(h) This section does not apply as to hearings provided for in Chapter 13 of this title.
(Acts 1971, No. 407, p. 707, §45.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 1 - General Provisions. › Section 27-2-31 - Hearings - Order.

Section 27-2-31
Hearings - Order.
(a) In the conduct of hearings under this title and making his order thereon, the commissioner shall act in a quasi-judicial capacity.
(b) Within 30 days after termination of the hearing, or of any rehearing thereof or reargument thereon, or within such other period as may be specified in this title as to particular proceedings, the commissioner shall make his order on hearing, covering matters involved in such hearing and in any such rehearing or reargument, and shall give a copy of such order to the same persons given notice of the hearing and to all parties to the hearing.
(c) The order shall contain a concise statement of the facts as found by the commissioner, his conclusions therefrom, and the matters required by Section 27-2-18.
(d) The order may affirm, modify, or rescind action theretofore taken or may constitute the taking of new action within the scope of the notice of hearing.
(e) This section does not apply as to hearings provided for in Chapter 13 of this title.
(Acts 1971, No. 407, p. 707, §46.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 1 - General Provisions. › Section 27-2-33 - Order of Supervision - Authority of Commissioner; Reasons for Issuance.

Section 27-2-33
Order of supervision - Authority of commissioner; reasons for issuance.
The Commissioner of Insurance is empowered to place an insurance company under supervision, after a hearing thereon, by appropriate order, for the following reasons:
(1) When an insurance company has been notified under the provisions of Section 27-27-41 of impairment or deficiency of assets and given 60 days to make good the impairment;
(2) A determination by the commissioner that an insurer is impaired or insolvent;
(3) A determination by the commissioner that an insurer's condition is such as to render the continuation of its business hazardous to its policyholders following an examination of the operations and financial condition of an insurer by the commissioner;
(4) Any of the grounds for rehabilitation or liquidation of domestic insurers set forth in Sections 27-32-6 and 27-32-7.
(Acts 1975, No. 217, p. 742, §1; Acts 1977, No. 409, p. 547, §1.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 1 - General Provisions. › Section 27-2-34 - Order of Supervision - Appointment of Supervisor; Acts Which May Be Prohibited During Period of Supervision.

Section 27-2-34
Order of supervision - Appointment of supervisor; acts which may be prohibited during period of supervision.
During the period of supervision the commissioner may appoint a supervisor and may provide that the insurer may not do the following things during the period of supervision without the prior approval of the commissioner or his duly appointed supervisors:
(1) Dispose of, convey, or encumber any of its assets or its business in force;
(2) Withdraw any of its bank accounts;
(3) Lend any of its funds;
(4) Invest any of its funds;
(5) Transfer any of its property;
(6) Incur any debt, obligation, or liability;
(7) Enter into any new reinsurance contract or treaty;
(8) Issue to the public policies of insurance.
(Acts 1975, No. 217, p. 742, §2; Acts 1977, No. 409, p. 547, §3.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 1 - General Provisions. › Section 27-2-35 - Order of Supervision - Withdrawal of Order; Duration of Order.

Section 27-2-35
Order of supervision - Withdrawal of order; duration of order.
The commissioner shall withdraw the supervision order immediately upon determination that the reasons for the supervision set forth in Section 27-2-33 have been corrected or no longer exist, but in no event shall the supervision order last longer than 180 days without another notice and hearing being conducted in the same manner as set out in Section 27-2-38.
(Acts 1975, No. 217, p. 742, §3; Acts 1977, No. 409, p. 547, §4; Acts 1982, 2nd Ex. Sess., No. 82-788, p. 293.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 1 - General Provisions. › Section 27-2-36 - Order of Supervision - Effect on Rehabilitation, Liquidation, and Delinquency Proceedings.

Section 27-2-36
Order of supervision - Effect on rehabilitation, liquidation, and delinquency proceedings.
The provisions of Chapter 32 of this title concerning rehabilitation and liquidation shall not be stayed during the period of supervision and the commencement of delinquency proceedings under Section 27-32-4, may commence either before, during or after a supervision order or period of supervision.
(Acts 1975, No. 217, p. 742, §4; Acts 1977, No. 409, p. 547, §5.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 1 - General Provisions. › Section 27-2-37 - Order of Supervision - Form and Content; Appeal.

Section 27-2-37
Order of supervision - Form and content; appeal.
The order of supervision issuing after the hearing shall follow the provisions of Section 27-2-18, and may be appealed in the same manner as orders falling under the provisions of Section 27-2-32.
(Acts 1975, No. 217, p. 742, §5; Acts 1977, No. 409, p. 547, §6.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 1 - General Provisions. › Section 27-2-38 - Order of Supervision - Notice and Hearing as to Issuance.

Section 27-2-38
Order of supervision - Notice and hearing as to issuance.
No order of supervision shall be issued by the commissioner until the insurance company has been given notice of the commissioner's intentions to place the company under supervision, the appropriate reasons for supervision set out in Section 27-2-33 and a hearing held thereon. The notice and hearing shall conform to the requirements set forth in Sections 27-2-26 through 27-2-31.
(Acts 1977, No. 409, p. 547, §2.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 1 - General Provisions. › Section 27-2-39 - Creation of Insurance Department Fund; Payment of Fees, Etc.

Section 27-2-39
Creation of Insurance Department Fund; payment of fees, etc.
THIS SECTION WAS AMENDED BY ACT 2022-148 IN THE 2022 REGULAR SESSION, EFFECTIVE OCTOBER 1, 2022. TO SEE THE AMENDED VERSION, SEE THE VERSION LABELED PENDING.
(a) There is created a fund in the State Treasury designated the "Insurance Department Fund" to be used for the operation of the Department of Insurance. Receipts deposited into this fund shall be disbursed only by warrants of the state Comptroller drawn upon the State Treasury on itemized vouchers approved by the Commissioner of Insurance. No funds shall be withdrawn or expended except as budgeted and allotted according to Sections 41-4-80 to 41-4-96, inclusive, and 41-19-1 to 41-19-12, inclusive, and only in amounts as stipulated in the general appropriations act, other appropriation acts, or this section. At the end of each fiscal year, any unencumbered and unexpended balance of up to 25 percent of the amount appropriated for that fiscal year shall not revert to the State General Fund under Section 41-4-93, but shall carry over to the next fiscal year.
(b) Notwithstanding any other provision of law, the Commissioner of Insurance shall promptly pay all sums, fees, taxes, licenses, renewals, and other miscellaneous charges collected pursuant to Sections 10-4-111, 27-2-16, 27-3-29, 27-4-2, 27-7-7, 27-8-1, 27-8-5, 27-13-5, 27-13-24, 27-13-62, 27-21A-21, 27-34-6, 27-34-36, 27-34-47, 27-39-6, and 27-39-7, other than those fines, penalties, and deposit requirements collected pursuant to Section 27-3-29, and other than those fees collected pursuant to Chapter 8A of Title 27 for deposit into the Insurance Agents and Brokers Continuing Education Fund, into the State Treasury with 50 percent credited to the State General Fund and 50 percent credited to the Insurance Department Fund.
(Acts 1996, No. 96-692, p. 1161, §§1, 2; Act 98-613, p. 1351, §1.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 2 - Receivership Division. › Section 27-2-50 - Established; Appointment, Term of Office, and Compensation of Chief.

Section 27-2-50
Established; appointment, term of office, and compensation of chief.
There is hereby established within the Department of Insurance a Receivership Division to be managed and headed by a chief of said division. The chief of said Receivership Division shall be appointed by the Commissioner of Insurance and shall serve at his pleasure. The compensation of said chief shall be fixed by the commissioner; except, that said compensation shall not exceed that of the highest paid division chief in the Insurance Department under the Merit System.
(Acts 1975, No. 1039, p. 2083, §1.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 2 - Receivership Division. › Section 27-2-51 - Bond of Chief.

Section 27-2-51
Bond of chief.
The Chief of the Receivership Division shall make bond payable to the State of Alabama in the amount of $75,000.00, conditioned upon faithful performance of his duties, the premiums of which shall be borne by the state. In addition each receivership court may require adequate bond of said receiver if the court deems it necessary, the premiums of which shall be paid from funds of the receivership.
(Acts 1975, No. 1039, p. 2083, §6.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 2 - Receivership Division. › Section 27-2-52 - Offices, Equipment, and Personnel; Operating Expenses.

Section 27-2-52
Offices, equipment, and personnel; operating expenses.
The Commissioner of Insurance shall furnish offices, equipment, operating expenses, and necessary personnel to maintain and operate the Receivership Division. The operating expenses of said division shall as far as practical be paid from the receiverships as administrative expenses on a pro rata basis, such expenses to be verified by the receiver to the receivership court having jurisdiction and paid on order of said court into the Special Examination Revolving Fund provided for in Section 27-2-25. To the extent of and limited to the funds paid into said revolving fund from receiverships, the Commissioner of Insurance is hereby authorized to draw upon said revolving fund on proper voucher, to pay for salaries, expenses, rent or equipment, or portion thereof, for the proper operation of the Receivership Division. Expenses and salaries not recoverable from receivership funds may be paid from funds appropriated to the Insurance Department. The Commissioner of Insurance is hereby authorized to assign one or more insurance examiners to the Receivership Division from time to time and to pay their salaries and expenses and to provide necessary equipment from the Special Examination Revolving Fund hereinabove mentioned.
(Acts 1975, No. 1039, p. 2083, §5.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 2 - Receivership Division. › Section 27-2-53 - Appointment of Chief as Receiver - Generally.

Section 27-2-53
Appointment of chief as receiver - Generally.
Upon the Commissioner of Insurance bringing delinquency proceedings against any insurer pursuant to this title, or other insurance laws of the state, the proper circuit court having jurisdiction thereof shall appoint the Chief of the Receivership Division as receiver of such impaired or insolvent insurer, or ancillary receiver if a foreign insurer is found to be impaired or insolvent.
(Acts 1975, No. 1039, p. 2083, §2.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 2 - Receivership Division. › Section 27-2-54 - Appointment of Chief as Receiver - Existing Receiverships.

Section 27-2-54
Appointment of chief as receiver - Existing receiverships.
The Commissioner of Insurance, as receiver in any existing receivership, may petition the proper receivership court to name as receiver thereof the Chief of the Receivership Division as provided for in this article, and upon making an accounting of the assets of such receivership by the commissioner, the court shall so change receivers or ancillary receivers by releasing and discharging the commissioner from such duty and responsibility and shall name the Chief of the Receivership Division as receiver or ancillary receiver.
(Acts 1975, No. 1039, p. 2083, §3.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2 - Department and Commissioner of Insurance. › Article 2 - Receivership Division. › Section 27-2-55 - Assumption by Receiver of Certain Former Powers, Duties, etc., of Commissioner.

Section 27-2-55
Assumption by receiver of certain former powers, duties, etc., of commissioner.
All duties, rights, power, authority and responsibility placed upon the Commissioner of Insurance by Sections 27-32-15 through 27-32-36, or by future law, as receiver of an insurer shall be vested in and assumed by the receiver appointed pursuant to this article, however, nothing herein shall divest the commissioner of the authority to examine insurers for solvency and to institute delinquency proceedings pursuant to law.
(Acts 1975, No. 1039, p. 2083, §4.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2A - Disclosure of Material Transactions. › Section 27-2A-2 - Report of Material Acquisitions and Dispositions; Confidential Treatment.

Section 27-2A-2
Report of material acquisitions and dispositions; confidential treatment.
(a) Every insurer domiciled in this state shall file a report with the commissioner disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements unless the acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements have been submitted to the commissioner for review, approval, or information purposes pursuant to other provisions of the insurance code, laws, regulations, or other requirements.
(b) The report required in subsection (a) is due within 15 days after the end of the calendar month in which any of the transactions in subsection (a) occur.
(c) One complete copy of the report, including any exhibits or other attachments, shall be filed with the following:
(1) The insurance department of the insurers state of domicile.
(2) The National Association of Insurance Commissioners.
(d) All reports obtained by or disclosed to the commissioner, pursuant to this section, shall be given confidential treatment and shall not be subject to subpoena and shall not be made public by the commissioner, the National Association of Insurance Commissioners, or any other person, except to insurance departments of other states, without the prior written consent of the insurer to which it pertains. The commissioner, after giving the insurer who would be affected notice and an opportunity to be heard, may determine that the interest of policyholders, shareholders, or the public will be served by publication, in which event the commissioner may publish all or any part of the information in the manner the commissioner may deem appropriate.
(Acts 1996, No. 96-784, p. 1426, §3.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2A - Disclosure of Material Transactions. › Section 27-2A-3 - Materiality; Scope; Information to Be Reported.

Section 27-2A-3
Materiality; scope; information to be reported.
(a) Materiality. No acquisitions or dispositions of assets need be reported, pursuant to Section 27-2A-2, if the acquisitions or dispositions are not material. For purposes of this section, a material acquisition (or the aggregate of any series of related acquisitions during any 30-day period) or disposition (or the aggregate of any series of related dispositions during any 30-day period) is one that is nonrecurring and not in the ordinary course of business and involves more than five percent of the reporting insurer's total admitted assets as reported in its most recent statutory statement filed with the insurance department of the insurer's state of domicile.
(b) Scope.
(1) Asset acquisitions subject to this chapter include every purchase, lease, exchange, merger, consolidation, succession, or other acquisition, other than the construction or development of real property, by or for the reporting insurer or the acquisition of materials for that purpose.
(2) Asset dispositions subject to this chapter include every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment, whether for the benefit of creditors or otherwise, abandonment, destruction, or other disposition.
(c) Information to be reported.
(1) The following information is required to be disclosed in any report of a material acquisition or disposition of assets:
a. Date of the transaction.
b. Manner of acquisition or disposition.
c. Description of the assets involved.
d. Nature and amount of the consideration given or received.
e. Purpose of, or reason for, the transaction.
f. Manner by which the amount of consideration was determined.
g. Gain or loss recognized or realized as a result of the transaction.
h. Name of the person from whom the assets were acquired or to whom they were disposed.
(2) Insurers are required to report material acquisitions and dispositions on a nonconsolidated basis, unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or 100 percent reinsurance agreement that affects the solvency and integrity of the insurers reserves and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars ($1,000,000) total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five percent of the insurer's capital and surplus.
(Acts 1996, No. 96-784, p. 1426, §4.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2B - Risk-Based Capital for Insurers. › Section 27-2B-1 - Short Title.

Section 27-2B-1
Short title.
This chapter shall be known as the Alabama Risk-Based Capital (RBC) for Insurers Act.
(Acts 1996, No. 96-784, p. 1426, §6.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2B - Risk-Based Capital for Insurers. › Section 27-2B-6 - Authorized Control Level Event; Commissioner's Duties.

Section 27-2B-6
Authorized control level event; commissioner's duties.
(a) "Authorized control level event" means any of the following events:
(1) The filing of an RBC report by the insurer which indicates that the insurer's total adjusted capital is greater than or equal to its mandatory control level RBC but less than its authorized control level RBC.
(2) The notification by the commissioner to the insurer of an adjusted RBC report that indicates the event in subdivision (1), provided the insurer does not challenge the adjusted RBC report under Section 27-2B-8.
(3) If, pursuant to Section 27-2B-8, the insurer challenges an adjusted RBC report that indicates the event in subdivision (1), notification by the commissioner to the insurer that the commissioner has, after a hearing, rejected the insurer's challenge.
(4) The failure of the insurer to respond, in a manner satisfactory to the commissioner, to a corrective order, provided the insurer has not challenged the corrective order under Section 27-2B-8.
(5) If the insurer has challenged a corrective order under Section 27-2B-8 and the commissioner has, after a hearing, rejected the challenge or modified the corrective order, the failure of the insurer to respond, in a manner satisfactory to the commissioner, to the corrective order subsequent to rejection or modification by the commissioner.
(b) In the event of an authorized control level event with respect to an insurer, the commissioner shall:
(1) Take actions as required under Section 27-2B-5 regarding an insurer with respect to which a regulatory action level event has occurred, or
(2) If the commissioner deems it to be in the best interests of the policyholders and creditors of the insurer and of the public, take actions as necessary to cause the insurer to be placed under regulatory control, pursuant to Chapter 32. In the event the commissioner takes actions, the authorized control level event shall be deemed sufficient grounds for the commissioner to take action pursuant to Chapter 32, and the commissioner shall have the rights, powers, and duties with respect to the insurer as are set forth in Chapter 32.
(Acts 1996, No. 96-784, p. 1426, §11.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2B - Risk-Based Capital for Insurers. › Section 27-2B-7 - Mandatory Control Level Event; Commissioner's Duties.

Section 27-2B-7
Mandatory control level event; commissioner's duties.
(a) "Mandatory control level event" means any of the following events:
(1) The filing of an RBC report which indicates that the insurer's total adjusted capital is less than its mandatory control level RBC.
(2) Notification by the commissioner to the insurer of an adjusted RBC report that indicates the event in subdivision (1), provided the insurer does not challenge the adjusted RBC report under Section 27-2B-8.
(3) If, pursuant to Section 27-2B-8, the insurer challenges an adjusted RBC report that indicates the event in subdivision (1), notification by the commissioner to the insurer that the commissioner has, after a hearing, rejected the insurer's challenge.
(b) In the event of a mandatory control level event:
(1) With respect to a life insurer, health organization, or fraternal benefit society, the commissioner shall take actions as necessary to place the insurer under regulatory control pursuant to Chapter 32. In that event, the mandatory control level event shall be deemed sufficient grounds for the commissioner to take action pursuant to Chapter 32, and the commissioner shall have the rights, powers, and duties with respect to the insurer as are set forth in Chapter 32. Notwithstanding any of the foregoing, the commissioner may forego action for up to 90 days after the mandatory control level event if the commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90-day period.
(2) With respect to a property and casualty insurer, the commissioner shall take actions as necessary to place the insurer under regulatory control pursuant to Chapter 32. In the case of an insurer which is writing no business and which is running-off its existing business, the commissioner may allow the insurer to continue its run-off under his or her supervision. In either event, the mandatory control level event shall be deemed sufficient grounds for the commissioner to take action, pursuant to Chapter 32, and the commissioner shall have the rights, powers, and duties with respect to the insurer as are set forth in Chapter 32. Notwithstanding any of the foregoing, the commissioner may forego action for up to 90 days after the mandatory control level event if the commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90-day period.
(Acts 1996, No. 96-784, p. 1426, §12; Act 2014-377, p. 1407, §2.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2B - Risk-Based Capital for Insurers. › Section 27-2B-8 - Right to Departmental Hearing; Notification of Request for Hearing.

Section 27-2B-8
Right to departmental hearing; notification of request for hearing.
(a) An insurer shall have the right to a departmental hearing, on the record, at which the insurer may challenge a determination or action by the commissioner upon any of the following:
(1) Notification to an insurer by the commissioner of an adjusted RBC report.
(2) Notification to an insurer by the commissioner that:
a. The insurer's RBC plan or revised RBC plan is unsatisfactory.
b. The notification constitutes a regulatory action level event with respect to the insurer.
(3) Notification to any insurer by the commissioner that the insurer has failed to adhere to its RBC plan or revised RBC plan and that the failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event with respect to the insurer in accordance with its RBC plan or revised RBC plan.
(4) Notification to an insurer by the commissioner of a corrective order with respect to the insurer.
(b) The insurer shall notify the commissioner of its request for a hearing within five days after the notification by the commissioner under subdivisions (1), (2), (3), or (4) of subsection (a). Upon receipt of the insurer's request for a hearing, the commissioner shall set a date for the hearing, which date shall be no less than 10 nor more than 30 days after the date of the insurer's request.
(Acts 1996, No. 96-784, p. 1426, §13.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2B - Risk-Based Capital for Insurers. › Section 27-2B-10 - Relationship to Other Laws; Adoption of Rules; Exemptions.

Section 27-2B-10
Relationship to other laws; adoption of rules; exemptions.
(a) The provisions of this chapter are supplemental to any other provisions of the laws of this state, and shall not preclude or limit any other powers or duties of the commissioner under other laws, including, but not limited to, Chapter 32, and Section 27-2-33.
(b) The commissioner may adopt reasonable rules necessary for the implementation of this chapter.
(c) The commissioner may exempt from the application of this chapter any domestic property and casualty insurer that meets all of the following criteria:
(1) Writes direct business only in this state.
(2) Writes direct annual premiums of two million dollars ($2,000,000) or less.
(3) Assumes no reinsurance in excess of five percent of direct premium written.
(d) The commissioner may exempt from the application of this chapter any health organization that meets all of the following criteria:
(1) Writes direct business only in this state.
(2) Assumes no reinsurance in excess of five percent of direct premium written.
(3) Meets either of the following criteria:
a. Writes direct annual premiums for comprehensive medical business of one million dollars ($1,000,000) or less.
b. Is a limited health services organization that covers less than 1,000 lives.
(Acts 1996, No. 96-784, p. 1426, §15; Act 2014-377, p. 1407, §3.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2B - Risk-Based Capital for Insurers. › Section 27-2B-11 - Foreign Insurers; Submission of Rbc Report or Plan; Application for Liquidation of Property.

Section 27-2B-11
Foreign insurers; submission of RBC report or plan; application for liquidation of property.
(a) Any foreign insurer shall, upon the written request of the commissioner, submit to the commissioner an RBC report, as of the end of the calendar year just ended, the later of either:
(1) The date an RBC report would be required to be filed by a domestic insurer under this chapter.
(2) Fifteen days after the request is received by the foreign insurer.
Any foreign insurer shall, at the written request of the commissioner, promptly submit to the commissioner a copy of any RBC plan that is filed with the insurance commissioner of any other state.
(b) In the event of a company action level event, regulatory action level event, or authorized control level event with respect to any foreign insurer, as determined under the RBC statute applicable in the state of domicile of the insurer or, if no RBC statute is in force in that state, pursuant to this chapter, or if the insurance commissioner of the state of domicile of the foreign insurer fails to require the foreign insurer to file an RBC plan, in the manner specified under that state's RBC statute or, if no RBC statute is in force in that state, under Section 27-2B-4, the commissioner may require the foreign insurer to file an RBC plan with the commissioner. In that event, the failure of the foreign insurer to file an RBC plan with the commissioner shall be grounds to order the insurer to cease and desist from writing new insurance business in this state.
(c) In the event of a mandatory control level event with respect to any foreign insurer, if no domiciliary receiver has been appointed with respect to the foreign insurer under the rehabilitation and liquidation statute applicable in the state of domicile of the foreign insurer, the commissioner may make application to the circuit court permitted under Chapter 32, with respect to the liquidation of property of foreign insurers found in this state. The occurrence of the mandatory control level event shall be considered adequate grounds for the application.
(Acts 1996, No. 96-784, p. 1426, §16; Acts 1997, No. 97-216, p. 331, §1.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2B - Risk-Based Capital for Insurers. › Section 27-2B-12 - Liability of Commissioner or Department of Insurance.

Section 27-2B-12
Liability of commissioner or Department of Insurance.
There shall be no liability on the part of, and no cause of action shall arise against, the commissioner or the Department of Insurance, or its employees or agents for any action taken by them in the performance of their powers and duties pursuant to this chapter.
(Acts 1996, No. 96-784, p. 1426, §17.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2B - Risk-Based Capital for Insurers. › Section 27-2B-13 - Effectiveness of Notice to Insurer.

Section 27-2B-13
Effectiveness of notice to insurer.
All notices by the commissioner to an insurer that may result in regulatory action pursuant to this chapter, shall be effective upon dispatch if transmitted by registered or certified mail, or in the case of any other transmission shall be effective upon the insurer's receipt of the notice.
(Acts 1996, No. 96-784, p. 1426, §18.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2B - Risk-Based Capital for Insurers. › Section 27-2B-14 - Rbc Reports With Respect to 1996.

Section 27-2B-14
RBC reports with respect to 1996.
(a) For RBC reports required to be filed by life insurers with respect to 1996, the following requirements shall apply in lieu of the provisions of Sections 27-2B-4, 27-2B-5, 27-2B-6, and 27-2B-7 as follows:
(1) In the event of a company action level event, with respect to a domestic insurer, the commissioner shall take no regulatory action hereunder.
(2) In the event of a regulatory action level event under subdivisions (1), (2), or (3) of subsection (a) of Section 27-2B-5, the commissioner shall take the actions required under Section 27-2B-4.
(3) In the event of a regulatory action level event under subdivisions (4), (5), (6), (7), (8), or (9) of subsection (a) of Section 27-2B-5, or an authorized control level event, the commissioner shall take the actions required under Section 27-2B-5 with respect to the insurer.
(4) In the event of a mandatory control level event with respect to an insurer, the commissioner shall take the actions required under Section 27-2B-6.
(b) For RBC reports required to be filed by property and casualty insurers with respect to 1996, the following requirements shall apply in lieu of the provisions of Sections 27-2B-4, 27-2B-5, 27-2B-6, and 27-2B-7:
(1) In the event of a company action level event with respect to a domestic insurer, the commissioner shall take no regulatory action hereunder.
(2) In the event of a regulatory action level event under subdivisions (1), (2), or (3) of subsection (a) of Section 27-2B-5, the commissioner shall take the actions required under Section 27-2B-4.
(3) In the event of a regulatory action level event under subdivisions (4), (5), (6), (7), (8), or (9) of subsection (a) of Section 27-2B-5, or an authorized control level event, the commissioner shall take the actions required under Section 27-2B-5 with respect to the insurer.
(4) In the event of a mandatory control level event with respect to an insurer, the commissioner shall take the actions required under Section 27-2B-6.
(Acts 1996, No. 96-784, p. 1426, §19.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 2B - Risk-Based Capital for Insurers. › Section 27-2B-14.1 - Rbc Reports With Respect to 2015.

Section 27-2B-14.1
RBC reports with respect to 2015.
For RBC reports required to be filed by health organizations and fraternal benefit societies with respect to 2015, the following requirements shall apply in lieu of the provisions of Sections 27-2B-4, 27-2B-5, 27-2B-6, and 27-2B-7:
(1) In the event of a company action level event with respect to a domestic insurer, the commissioner shall take no regulatory action hereunder.
(2) In the event of a regulatory action level event under subdivisions (1), (2), or (3) of subsection (a) of Section 27-2B-5, the commissioner shall take the actions required under Section 27-2B-4.
(3) In the event of a regulatory action level event under subdivisions (4), (5), (6), (7), (8), or (9) of subsection (a) of Section 27-2B-5, or an authorized control level event, the commissioner shall take the actions required under Section 27-2B-5 with respect to the organization or society.
(4) In the event of a mandatory control level event with respect to an insurer, the commissioner shall take the actions required under Section 27-2B-6.
(Act 2014-377, p. 1407, §3.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 3 - Authorization of Insurers. › Section 27-3-1 - Certificate of Authority - Requirement.

Section 27-3-1
Certificate of authority - Requirement.
(a) No person shall act as an insurer and no insurer shall transact insurance in this state unless so authorized by a subsisting certificate of authority issued to it by the commissioner, except as to such transactions as are expressly otherwise provided for in this title.
(b) No insurer shall from offices or by personnel or facilities located in this state solicit insurance applications or otherwise transact insurance in another state or country unless it holds a subsisting certificate of authority issued to it by the commissioner authorizing it to transact the same kind or kinds of insurance in this state.
(Acts 1971, No. 407, p. 707, §48.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 3 - Authorization of Insurers. › Section 27-3-2 - Certificate of Authority - Exceptions - Generally.

Section 27-3-2
Certificate of authority - Exceptions - Generally.
A certificate of authority shall not be required of an insurer with respect to the following:
(1) Transactions relative to its policies lawfully written in this state or liquidation of assets and liabilities of the insurer, other than collection of new premiums, all as resulting from its former authorized operations in this state;
(2) Transactions thereunder subsequent to issuance of a policy covering only subjects of insurance not resident, located, or expressly to be performed in this state at time of issuance and lawfully solicited, written, or delivered outside this state;
(3) Transactions pursuant to surplus lines coverages lawfully written under Chapter 10 of this title; and
(4) Reinsurance.
(Acts 1971, No. 407, p. 707, §49.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 3 - Authorization of Insurers. › Section 27-3-3 - Certificate of Authority - Exceptions - Investment in Real Estate or Securities Secured Thereby.

Section 27-3-3
Certificate of authority - Exceptions - Investment in real estate or securities secured thereby.
A foreign insurer may transact business in this state without certificate of authority for the purpose, and to the extent only, of investing its funds in real estate located in this state, or in securities secured thereby, by complying with the requirements of Amendment 154 of the Constitution of Alabama. Such an insurer shall not be subject to any other provisions of this title.
(Acts 1971, No. 407, p. 707, §50.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 3 - Authorization of Insurers. › Section 27-3-4 - Authority to Transact Insurance - Eligibility.

Section 27-3-4
Authority to transact insurance - Eligibility.
To qualify for and hold authority to transact insurance in this state, an insurer must be otherwise in compliance with this title and with its charter powers and must be an incorporated stock insurer or an incorporated mutual insurer or a reciprocal insurer, all of the same general type as may be formed as a domestic insurer under this title; except that:
(1) No foreign insurer shall be authorized to transact insurance in this state which does not maintain reserves as required by Chapter 36 of this title applicable to the kind, or kinds, of insurance transacted by such insurer, wherever transacted in the United States, or which transacts insurance in the United States on the assessment premium plan, stipulated premium plan, cooperative plan, or any similar plan;
(2) Any foreign insurer which has transacted insurance as an authorized insurer in its state or country of domicile for less than five years shall not be authorized to transact insurance in this state unless it is otherwise qualified for such authority under this code and is:
a. The wholly owned subsidiary of an insurer authorized to transact insurance in this state;
b. The continuing corporation resulting from a merger or consolidation of insurers at least one of which insurers has been an authorized insurer in its state or country of domicile for at least five years; or
c. Is in compliance with the requirements as to capital and surplus provided therefor under Sections 27-3-7 and 27-3-8;
(3) The commissioner shall not grant or continue authority to transact insurance in this state as to any insurer the management of which is found by him, after thorough investigation, to be incompetent or untrustworthy, or so lacking in insurance company managerial experience as to make the proposed operation hazardous to the insurance-buying public or which, after thorough examination or investigation, he has good reason to believe is affiliated directly or indirectly through ownership, control, reinsurance transactions, or other insurance or business relations with any person, or persons, whose business operations are, or have been, marked to the injury of insurers, stockholders, policyholders, creditors, or the public by manipulation of assets, of accounts or of reinsurance or by bad faith;
(4) No insurer the voting control of which is held, in whole or substantial part, by any government or governmental agency shall be authorized to transact insurance in this state. Membership in a mutual insurer or subscribership in a reciprocal insurer shall not be deemed to be either an ownership or control of the insurer for the purposes of this subdivision; and
(5) Lloyd's plan insurers may be authorized to transact insurance in this state as provided in Section 27-3-16.
(Acts 1971, No. 407, p. 707, §51.)