reglab/statecodes huggingface dataset:
2023 Code of Alabama › Title 27 - Insurance. › Chapter 3A - Health Care Service Utilization Review Act. › Section 27-3A-4 - Duties of Utilization Review Agents.

Section 27-3A-4
Duties of utilization review agents.
(a) Utilization review agents shall adhere to the minimum standards set forth in Section 27-3A-5.
(b) On or after July 1, 1994, a utilization review agent shall not conduct a utilization review in this state unless the agent has certified to the department in writing that the agent is in compliance with Section 27-3A-5. Certification shall be made annually on or before July 1 of each calendar year. In addition, a utilization review agent shall file the following information:
(1) The name, address, telephone number, and normal business hours of the utilization review agent.
(2) The name and telephone number of a person for the department to contact.
(3) A description of the appeal procedures for utilization review determinations.
(c) Any material changes in the information filed in accordance with this section shall be filed with the State Health Officer within 30 days of the change.
(d) Unless exempted pursuant to paragraph f. of subdivision (5) of Section 27-3A-3, each utilization review agent, upon filing the certification, shall pay an annual fee in the amount of one thousand dollars ($1,000) to the department. All fees paid pursuant to this subdivision shall be held by the department as expendable receipts for the purpose of administering this chapter.
(e) The department may adopt rules pursuant to the Administrative Procedure Act necessary to implement this chapter.
(Acts 1994, 1st Ex. Sess., No. 94-786, p. 80, §4.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 3A - Health Care Service Utilization Review Act. › Section 27-3A-6 - Violations of Chapter by Utilization Review Agent.

Section 27-3A-6
Violations of chapter by utilization review agent.
(a) Whenever the department has reason to believe that a utilization review agent subject to this chapter has been or is engaged in conduct that violates this chapter, the department shall notify the utilization review agent of the alleged violation. The agent shall respond to the notice not later than 30 days after the notice is made.
(b) If the department finds that the utilization review agent has violated this chapter, or that the alleged violation has not been corrected, the department may conduct a contested case hearing on the alleged violation in accordance with the Administrative Procedure Act.
(c) If, after the hearing, the department determines that the utilization review agent has engaged in a violation, the department shall reduce the findings to writing and shall issue and cause to be served upon the agent a copy of the findings and an order requiring the agent to cease and desist from engaging in the violation.
(d) The department may also exercise either or both of the following disciplinary powers:
(1) Impose an administrative fine of not more than five thousand dollars ($5,000) for a violation that occurred with such frequency as to indicate a general business pattern or practice.
(2) Suspend or revoke the certification of a utilization review agent if the agent knew the act was in violation of this chapter and repeated the act with such frequency as to indicate a general business pattern or practice.
(Acts 1994, 1st Ex. Sess., No. 94-786, p. 80, §6.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 4 - Fees and Taxes. › Section 27-4-8 - Annual License Fee of Life Insurers Organized to Aid Nonprofit Educational and Scientific Institutions.

Section 27-4-8
Annual license fee of life insurers organized to aid nonprofit educational and scientific institutions.
Annuity considerations and premiums received by a life insurer licensed to transact business in this state and which is organized and operated without profit to any private shareholder or individual and exclusively for the purpose of aiding nonprofit education and scientific institutions by issuing insurance or annuity contracts only for the benefit of such institutions and individuals employed in the services thereof at the time such policy or contract is issued shall not be subject to the payment of a privilege tax based upon premiums or annuity considerations under the provisions of this chapter or any other law of this state. In lieu of such privilege tax upon premiums and annuity considerations, such nonprofit company shall pay an annual license fee of $5,000.00 to the commissioner for the privilege of transacting an insurance business in this state. The initial payment of such shall be due on the date that such insurer is licensed to do business in the State of Alabama and upon March 1, of each year succeeding that of admission, so long as such insurer shall be licensed to transact an insurance business in this state.
(Acts 1971, No. 407, p. 707, §83.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 4 - Fees and Taxes. › Section 27-4-11 - Refund of Taxes or Licenses Paid by Mistake.

Section 27-4-11
Refund of taxes or licenses paid by mistake.
(a) Where any taxpayer in the payment of taxes or payments of licenses which are paid directly to the commissioner and where by a mistake of fact or law has paid an amount in excess of the amount due or has made an erroneous payment, the Comptroller is authorized to draw his warrant on the Treasurer in favor of such taxpayer and the Treasurer is authorized to pay such warrant for the amount of such overpayment or erroneous payment.
(b) Before any refund under this section can be made the taxpayer, his heirs, successors or assigns shall file, in duplicate, a petition directed to the commissioner, setting up the fact relied on to procure the refunding of the money erroneously paid. Such application must be made within three years from the date of such payment.
(c) The commissioner shall examine said petition and the records of the Department of Insurance, and if the facts set forth in the petition are such as to entitle the petitioner to the refunding of the money as requested and the commissioner, upon the evidence adduced is satisfied that the petitioner is entitled to the refund as requested, he shall so certify to the Comptroller, stating the amount to be refunded by the state, the particular fund on which such warrant shall be drawn, including both the special revolving fund and the General Fund, and he shall forward to the Comptroller a copy of the petition with the certificate attached. If the Comptroller shall be satisfied that the petition is in form required by law, he shall draw his warrant on the Treasurer as provided in this section for the amount certified to him by the commissioner.
(Acts 1971, No. 407, p. 707, §86.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 4A - Insurance Premium Tax. › Section 27-4A-2 - Definitions.

Section 27-4A-2
Definitions.
For the purposes of this chapter only, the following terms, unless the context clearly indicates otherwise, shall have the meanings:
(1) ANNUITY CONSIDERATIONS. All sums received as consideration for annuity contracts.
(2) COMMISSIONER. The Commissioner of Insurance of the State of Alabama.
(3) DEPARTMENT. The Department of Insurance of the State of Alabama.
(4) DOMESTIC INSURER. Any insurer organized under the laws of the State of Alabama which maintains its principal office and chief place of business in the State of Alabama.
(5) FOREIGN INSURER. Any insurer organized under the laws of any country or of any state of the United States other than the State of Alabama and any insurer organized under the laws of Alabama which maintains its principal office or chief place of business outside the State of Alabama.
(6) INSURER. Every insurer as defined in Section 27-1-2, and every other insurance company or association charging a premium for contracts entered into by those companies, associations, or societies, which shall include every non-profit corporation organized pursuant to Sections 10-4-100 to 10-4-115, inclusive, every mutual aid association including those organized pursuant to Chapter 30, Title 27, and every health maintenance organization including those organized pursuant to Chapter 21A, Title 27. Notwithstanding the foregoing, societies exempt pursuant to Section 27-34-42, and self-insurance programs utilizing a trust fund or similar entity providing workers' compensation, health, and other insurance-like coverage shall not be included within this definition of insurer.
(7) MEDICAL LIABILITY INSURANCE. Liability insurance provided to hospitals, physicians, dentists, and other persons licensed by the State of Alabama to provide healthcare services against legal liability resulting from the failure of such insureds to comply with the standard of care applicable to them in rendering medical care to patients, including general liability insurance written as a part of such insurance.
(8) PREMIUMS. All amounts received in cash or otherwise on risks in this state as consideration for contracts of insurance, less all of the following:
a. Insurance premiums returned.
b. Reinsurance premiums from insurance companies authorized to do business in Alabama and subject to the premium tax provided for in Chapter 4 of Title 27.
c. Dividends paid, applied, or left with the company to accumulate at interest.
Premiums shall not include: (i) annuity considerations; or (ii) charges by title insurers for abstracting, record searching, certificates as to the record title, escrow and closing services and other related services, or the costs and expenses of examinations of title.
(Acts 1993, No. 93-679, p. 1291, §2; Acts 1993, 1st Ex. Sess., No. 93-847, p. 67, §1.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 4A - Insurance Premium Tax. › Section 27-4A-4 - Penalties.

Section 27-4A-4
Penalties.
Every insurer failing to comply with the requirements of this chapter shall be subject to a penalty of not less than $1,000 nor exceeding $10,000, recoverable in an action brought by the Attorney General for the commissioner. Upon any violation, the commissioner may suspend or revoke the insurer's certificate of authority. Penalties recovered under this section shall be paid to the State Treasury to the credit of the State General Fund.
(Acts 1993, No. 93-679, p. 1291, §4.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 4A - Insurance Premium Tax. › Section 27-4A-5 - Exclusive Tax on Premiums.

Section 27-4A-5
Exclusive tax on premiums.
The premium tax levied by this chapter is exclusive and shall be in lieu of all other and additional taxes and licenses of the state or county imposed on, based upon or measured by premiums received by the insurer for business done in this state. No license or privilege tax shall be charged any insurer paying the premium tax levied by this chapter by or on behalf of any county.
(Acts 1993, No. 93-679, p. 1291, §5.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 4A - Insurance Premium Tax. › Section 27-4A-6 - Exemption From Income and Ad Valorem Taxes.

Section 27-4A-6
Exemption from income and ad valorem taxes.
Nothing in this chapter shall be construed to repeal any existing laws or statutes which exempt or exclude insurers from the payment of fees, taxes, or licenses other than the tax imposed by this chapter. Without limiting the generality of the preceding sentence, insurers upon which this section imposes a tax upon their premium income or in lieu thereof, shall be exempt from income taxes imposed by the State of Alabama under the provisions of Chapter 18 of Title 40, or any other similar law.
(Acts 1993, No. 93-679, p. 1291, §6; Act 2000-705, p. 1442, §3.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 4A - Insurance Premium Tax. › Section 27-4A-7 - Mutual Aid Associations.

Section 27-4A-7
Mutual aid associations.
Mutual aid associations shall be subject to the provisions of this chapter and subject to the annual premium tax to be paid by insurers on insurance premiums.
(Acts 1993, No. 93-679, p. 1291, §10.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5 - Kinds of Insurance; Limits of Risk; Reinsurance. › Section 27-5-1 - Definitions Not Mutually Exclusive; Exceptions to Applicability of Chapter.

Section 27-5-1
Definitions not mutually exclusive; exceptions to applicability of chapter.
(a) It is intended that certain insurance coverages may come within the definitions of two or more kinds of insurance as defined in this chapter, and the inclusion of such coverage within one definition shall not exclude it as to any other kind of insurance within the definition of which such coverage is likewise reasonably includable.
(b) The definitions contained in this chapter shall not be applicable to the construction of Sections 11-51-120 and 11-51-121.
(Acts 1971, No. 407, p. 707, §87.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5 - Kinds of Insurance; Limits of Risk; Reinsurance. › Section 27-5-2 - "Life Insurance" Defined.

Section 27-5-2
"Life insurance" defined.
"Life insurance" is insurance on human lives. The transaction of life insurance includes also the granting of endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits in event of the insured's disability, burial insurance, and optional modes of settlement of proceeds of life insurance. Life insurance does not include workmen's compensation coverages.
(Acts 1971, No. 407, p. 707, §88.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5 - Kinds of Insurance; Limits of Risk; Reinsurance. › Section 27-5-3 - "Annuity" Defined.

Section 27-5-3
"Annuity" defined.
For the purpose of this title, an "annuity" is a contract under which obligations are assumed with respect to periodic payments for a specific term, or terms, or where the making or continuance of all or of some of such payments or the amount of any such payment is dependent upon the continuance of human life, except payments made pursuant to optional modes of settlement under the authority of Section 27-5-2. Such a contract, which includes extra benefits of the kinds set forth in Sections 27-5-2 and 27-5-3, shall, nevertheless, be deemed to be an annuity if such extra benefits constitute a subsidiary or incidental part of the entire contract.
(Acts 1971, No. 407, p. 707, §88.1.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5 - Kinds of Insurance; Limits of Risk; Reinsurance. › Section 27-5-4 - "Disability Insurance" Defined.

Section 27-5-4
"Disability insurance" defined.
"Disability insurance" is insurance of human beings against bodily injury, disablement or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness and every insurance appertaining thereto. Disability insurance does not include workmen's compensation coverages.
(Acts 1971, No. 407, p. 707, §89.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5 - Kinds of Insurance; Limits of Risk; Reinsurance. › Section 27-5-5 - "Property Insurance" Defined.

Section 27-5-5
"Property insurance" defined.
"Property insurance" is insurance on real or personal property of every kind and of every interest therein, whether on land, water, or in the air, against loss or damage from any and every hazard or cause and against loss consequential upon such loss or damage other than noncontractual legal liability for any such loss or damage.
(Acts 1971, No. 407, p. 707, §90.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5 - Kinds of Insurance; Limits of Risk; Reinsurance. › Section 27-5-7 - "Surety Insurance" Defined.

Section 27-5-7
"Surety insurance" defined.
"Surety insurance" includes:
(1) Fidelity insurance, which is insurance guaranteeing the fidelity of persons holding positions of public or private trust;
(2) Insurance guaranteeing the performance of contracts, other than insurance policies, and guaranteeing and executing bonds, undertakings and contracts of suretyship; and
(3) Insurance indemnifying banks, bankers, brokers, financial or moneyed corporations or associations against loss, resulting from any cause, of bills of exchange, notes, bonds, securities, evidences of debt, deeds, mortgages, warehouse receipts or other valuable papers, documents, money, precious metals, and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semiprecious stones, including any loss while the same are being transported in armored motor vehicles or by messenger, but not including any other risks of transportation or navigation; also, insurance against loss or damage to such an insured's premises or to his furnishings, fixtures, equipment, safes, and vaults therein caused by burglary, robbery, theft, vandalism or malicious mischief, or any attempt thereat.
(Acts 1971, No. 407, p. 707, §92.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5 - Kinds of Insurance; Limits of Risk; Reinsurance. › Section 27-5-8 - "Marine Insurance" Defined.

Section 27-5-8
"Marine insurance" defined.
"Marine insurance" includes:
(1) Insurance against any and all kinds of loss or damage to:
a. Vessels, craft, aircraft, cars, automobiles and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, bullion, precious stones, securities, choses in action, evidence of debt, valuable papers, bottomry and respondentia interests, and all other kinds of property and interests therein in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed, or similarly prepared for shipment or while awaiting the same or during any delays, storage, transshipment, or reshipment incident thereto, including marine builder's risks and all personal property floater risks;
b. Person or to property in connection with, or appertaining to, a marine, inland marine, transit or transportation insurance, including liability for loss of, or damage to, either, arising out of or in connection with the construction, repair, operation, maintenance or use of the subject matter of such insurance, but not including life insurance or surety bonds nor insurance against loss by reason of bodily injury to the person arising out of the ownership, maintenance or use of automobiles;
c. Precious stones, jewels, jewelry, gold, silver, and other precious metals, whether used in business or trade or otherwise and whether the same be in course of transportation or otherwise; and
d. Bridges, tunnels and other instrumentalities of transportation and communication, excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage, unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion are the only hazards to be covered; piers, wharves, docks, and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot, and/or civil commotion; and other aids to navigation and transportation, including dry docks and marine railways, against all risks.
(2) "Marine protection and indemnity insurance," meaning insurance against, or against legal liability of the insured for, loss, damage or expense arising out of, or incident to, the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness, or death or for loss of, or damage to, the property of another person.
(Acts 1971, No. 407, p. 707, §93.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5 - Kinds of Insurance; Limits of Risk; Reinsurance. › Section 27-5-9 - "Wet Marine and Transportation Insurance" Defined.

Section 27-5-9
"Wet marine and transportation insurance" defined.
For the purposes of this title, "wet marine and transportation insurance" is that part of marine insurance which includes only:
(1) Insurance upon vessels, crafts, hulls and of interests therein or with relation thereto;
(2) Insurance of marine builder's risks, marine war risks, and contracts of marine protection and indemnity insurance;
(3) Insurance of freights and disbursements pertaining to a subject of insurance coming within this section; and
(4) Insurance of personal property and interests therein in course of exportation from, or importation into, any country and in course of transportation coastwise or on inland waters, including transportation by land, water or air from point of origin to final destination, in respect to, appertaining to or in connection with any and all risks or perils of navigation, transit or transportation, and while being prepared for and while awaiting shipment and during any delays, storage, transshipment or reshipment incident thereto.
(Acts 1971, No. 407, p. 707, §93.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5 - Kinds of Insurance; Limits of Risk; Reinsurance. › Section 27-5-10 - "Title Insurance" Defined.

Section 27-5-10
"Title insurance" defined.
"Title insurance" is insurance of owners of property, or others having an interest therein or liens or encumbrances thereon against loss by encumbrance, or defective titles, or invalidity or adverse claim to title.
(Acts 1971, No. 407, p. 707, §94.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5 - Kinds of Insurance; Limits of Risk; Reinsurance. › Section 27-5-11 - Limits of Risk.

Section 27-5-11
Limits of risk.
(a) No insurer shall retain any risk on any one subject of insurance, whether located or to be performed in this state or elsewhere, in an amount exceeding 10 percent of its surplus to policyholders.
(b) A "subject of insurance," for the purposes of this section, as to insurance against fire and hazards other than windstorm, earthquake, and other catastrophic hazards, includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or the same occurrence of such other hazard insured against.
(c) Reinsurance ceded as authorized by Section 27-5-12 shall be deducted in determining risk retained. As to surety risks, deduction shall also be made of the amount assumed by any established incorporated cosurety and the value of any security deposited, pledged or held subject to the surety's consent and for the surety's protection.
(d) As to alien insurers, this section shall relate only to risks and surplus to policyholders of the insurer's United States branch.
(e) "Surplus to policyholders," for the purposes of this section, in addition to the insurer's capital and surplus, shall be deemed to include any voluntary reserves which are not required pursuant to law and shall be determined from the last sworn statement of the insurer on file with the commissioner or by the last report of examination of the insurer, whichever is the more recent at time of assumption of risk.
(f) This section shall not apply to life or disability insurance, title insurance, insurance of wet marine and transportation risks, workmen's compensation insurance, employers' liability coverages, nor to any policy or type of coverage as to which the maximum possible loss to the insurer is not readily ascertainable on issuance of the policy.
(g) Limits of risk as to newly formed domestic mutual insurers shall be as provided in Section 27-27-15.
(Acts 1971, No. 407, p. 707, §95.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5 - Kinds of Insurance; Limits of Risk; Reinsurance. › Section 27-5-12 - Reinsurance.

Section 27-5-12
Reinsurance.
Repealed by Act 2013-209, §2, effective January 1, 2014.
(Acts 1971, No. 407, p. 707, §96; Acts 1990, No. 90-767, p. 1566; Acts 1994, 1st Ex. Sess., No. 94-788, p. 87, §1; Act 2003-346, p. 879, §1.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5 - Kinds of Insurance; Limits of Risk; Reinsurance. › Section 27-5-13 - Denial of Health or Disability Insurance Coverage Upon Diagnosis of Sickle-Cell Anemia Prohibited.

Section 27-5-13
Denial of health or disability insurance coverage upon diagnosis of sickle-cell anemia prohibited.
Notwithstanding any other provision of law, any insurance company doing business within the state which offers health or disability insurance, is hereby prohibited from denying coverage to applicants because the applicant has been diagnosed as having sickle-cell anemia, and is hereby required to pay any valid claim made involving treatment or care of sickle-cell anemia in accordance with other policy provisions.
(Acts 1982, No. 82-542, p. 893, §1.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5A - Reinsurance Intermediaries. › Section 27-5A-4 - Required Contract Provisions; Reinsurance Intermediary-Brokers.

Section 27-5A-4
Required 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5A - Reinsurance Intermediaries. › Section 27-5A-5 - Books and Records; Reinsurance Intermediary-Brokers.

Section 27-5A-5
Books 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.)
2023 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-6
Duties 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5A - Reinsurance Intermediaries. › Section 27-5A-8 - Prohibited Acts.

Section 27-5A-8
Prohibited 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.)
2023 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-9
Duties 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5A - Reinsurance Intermediaries. › Section 27-5A-10 - Examination Authority.

Section 27-5A-10
Examination 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5A - Reinsurance Intermediaries. › Section 27-5A-11 - Penalties and Liabilities.

Section 27-5A-11
Penalties 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5A - Reinsurance Intermediaries. › Section 27-5A-12 - Rules and Regulations.

Section 27-5A-12
Rules 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5A - Reinsurance Intermediaries. › Section 27-5A-13 - Utilization of Services of Reinsurance Intermediary.

Section 27-5A-13
Utilization 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5B - Reinsurance. › Section 27-5B-1 - Purpose.

Section 27-5B-1
Purpose.
The purpose of this chapter is to protect the interest of insureds, claimants, ceding insurers, assuming insurers, and the public generally. The Legislature declares its 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5B - Reinsurance. › Section 27-5B-2 - Reinsurance Permitted.

Section 27-5B-2
Reinsurance permitted.
(a) An insurer authorized under this title may accept reinsurance only of such risks and retain risk thereon within such limits as it is otherwise 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5B - Reinsurance. › Section 27-5B-3 - Credit Allowed a Domestic Ceding Insurer.

Section 27-5B-3
Credit 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5B - Reinsurance. › Section 27-5B-4 - Licensed Reinsurer.

Section 27-5B-4
Licensed reinsurer.
Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is licensed to transact insurance or reinsurance in this state.
(Act 2013-209, p. 463, §1.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5B - Reinsurance. › Section 27-5B-5 - Accredited Reinsurer.

Section 27-5B-5
Accredited reinsurer.
Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is accredited by the commissioner as a reinsurer in this state. 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5B - Reinsurance. › Section 27-5B-6 - Reinsurer Domiciled in State With Substantially Similar Law.

Section 27-5B-6
Reinsurer domiciled in state with substantially similar law.
(a) Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is domiciled in, or in the case of a U.S. 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5B - Reinsurance. › Section 27-5B-9 - Credit for Reinsurance Required by Law.

Section 27-5B-9
Credit for reinsurance required by law.
Credit shall be allowed when the reinsurance is ceded to an assuming insurer not meeting the requirements of Section 27-5B-4, 27-5B-5, 27-5B-6, 27-5B-7, 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.)
2023 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-10
Reinsurer not licensed, accredited or certified - Additional reinsurance agreement requirements.
(a) If the assuming insurer is not licensed, accredited or certified to transact insurance or reinsurance in this state, the credit permitted by Sections 27-5B-6 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.)
2023 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-11
Reinsurer not licensed, accredited, or certified - Additional trust agreement requirements.
If the assuming insurer does not meet the requirements of Section 27-5B-4, 27-5B-5, 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5B - Reinsurance. › Section 27-5B-12 - Accredited or Certified Reinsurer Ceasing to Meet Requirements.

Section 27-5B-12
Accredited or certified reinsurer ceasing to meet requirements.
(a) If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the commissioner may suspend or revoke the reinsurer's accreditation 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.)
2023 Code of Alabama › Title 27 - Insurance. › Chapter 5B - Reinsurance. › Section 27-5B-13 - Concentration Risk.

Section 27-5B-13
Concentration risk.
(a) A ceding insurer shall take steps to manage its reinsurance recoverables proportionate to its own book of business. A domestic ceding insurer shall notify 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.)