Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-054 - NOTIFICATION OF ACTIONS AGAINST INSURANCE COMPANIES, INSURANCE PRODUCERS, AND OTHER LICENSED ENTITIES › Section 482-1-054-.03 - Notice Requirement

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The
			 Commissioner of Insurance shall be notified within thirty days of the happening
			 of any one or more of the following:
(a) The
			 suspension or revocation of a licensee's license, certificate of authority, or
			 right to transact business in another state.
(b) The receipt by a licensee of an order or
			 complaint to show why the licensee's license or certificate of authority in
			 another state should not be suspended or revoked, or charges of any type filed
			 against a licensee by a state or federal agency which, if substantiated, could
			 result in the suspension or revocation of a licensee's license or certificate
			 of authority in another state.
(c)
			 The imposition of a monetary penalty against a domestic insurer or any
			 insurance producer by any other state or federal agency for any violation of
			 the insurance or insurance related laws of such other state or federal agency,
			 other than the imposition of a monetary penalty imposed merely due to the
			 untimely filing of reports, statements or notices, which does not also include
			 suspension or revocation of the license.
(d) The arrest, indictment or conviction of a
			 licensee for the commission of any felony.
(e) The filing of a civil lawsuit, the
			 rendering of a verdict, or the finding of a court against a producer, where
			 such lawsuit, verdict, or finding of a court alleges or charges the producer
			 with committing any of the following acts in the State of Alabama: intentional
			 misrepresentation, fraud, dishonesty, misappropriation or conversion of funds,
			 a breach of a fiduciary duty, or any other offense involving a breach of
			 trust.
(f) A final judgment entered
			 by a court of competent jurisdiction in a civil lawsuit against a domestic
			 insurer, wherein the domestic insurer was found to have committed any of the
			 following acts: intentional misrepresentation, fraud, dishonesty,
			 misappropriation or conversion of funds, a breach of a fiduciary duty, or any
			 other offense involving a breach of trust.
(g) Failing to comply with an administrative
			 or court order imposing a child support obligation.
(h) Failing to pay state income tax or
			 failing to comply with any administrative or court order directing payment of
			 state income tax.
(i) The
			 certification of a class action lawsuit by a court of competent jurisdiction
			 against a licensee, irrespective of the underlying charges or claims against
			 the licensee, that substantially affects residents of the State of Alabama. A
			 class action lawsuit will be deemed to substantially affect residents of the
			 State of Alabama in any of the following instances:
1. The products that are the subject of the
			 lawsuit are or have been offered for sale by the licensee within the State of
			 Alabama.
2. The practices that are
			 the subject of the lawsuit are or have been engaged in by the licensee within
			 the State of Alabama.
3. The
			 licensee knows of class members or potential class members that reside in the
			 State of Alabama, even if the policy was originally sold in another
			 state.