reglab/statecodes huggingface dataset:
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Section 482-1-093-.03 - Definitions

Current through Register Vol. 42, No. 9, June 28, 2024
As used in this chapter, the following terms shall have the
				following meanings, respectively, unless the context clearly indicates
				otherwise:
(a) LOAN. The extension of
			 credit for household, personal or family use.
(b) DEALER. Any person who makes loans for
			 household, personal or family use or any successor to a creditor's
			 rights.
(c) Lender. Any person
			 engaged in the business of making consumer credit loans under the provisions of
			 the Alabama Consumer Credit Act (Mini Code),
Code of Ala.
			 1975
, and any assignee of a consumer credit loan agreement, state
			 banking associations, savings and loan associations, national banking
			 associations to the extent that federal laws do not preempt this chapter,
			 credit unions and any director, officer, employee or agent of such a
			 person.
(d) Credit property
			 insurance. Coverage upon personal property, other than an automobile, pledged
			 as collateral or security upon a loan as defined and shall include the standard
			 fire policy with coverage attachment, extended coverage endorsement, and
			 burglary coverage, and may include theft coverage provided on either a single
			 or dual interest basis with rates set forth in Rule
			 482-1-093-.10. Additional
			 coverages other than those described above may be included but no additional
			 premium may be charged.
(e)
			 Involuntary unemployment insurance. Insurance on a debtor to provide indemnity
			 for payments of debt becoming due on a specific loan or other credit
			 transaction while the debtor is involuntarily unemployed as defined in the
			 policy.
Author:
Vincent R. Ledlow, Associate
				Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Section 482-1-093-.04 - Sales Only Through Licensed Producers

Current through Register Vol. 42, No. 9, June 28, 2024
All sales of insurance within the scope of this chapter must be
				made through producers licensed in accordance with Chapter 482-1-111.
Author:
Vincent R. Ledlow, Associate
				Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Section 482-1-093-.05 - Written Evidence Of Insurance Required

Current through Register Vol. 42, No. 9, June 28, 2024
The insurer must deliver to the insured within seventy-five
				(75) days of the extension of credit, a copy of the policy or the certificate
				of insurance. This may be done directly or through the insurer's producer in
				the credit institution.
Author:
Vincent R. Ledlow, Associate
				Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Section 482-1-093-.06 - Consumer Rights

Current through Register Vol. 42, No. 9, June 28, 2024
Each insurer shall grant, and no insurer or affiliated producer
				shall deny, any insured the full and free exercise of the following
				rights:
(a) The consumer shall not be
			 required or coerced to obtain insurance from any particular insurer nor through
			 any particular producer or representative of a company as a condition to
			 obtaining a loan. No insurer shall participate or knowingly allow its producers
			 to participate in such a scheme of requirements or coercion.
(b) If the debtor has or obtains additional
			 personal property coverage, the debtor may retain additional coverage or may
			 substitute coverage at any time, and upon such substitution, shall be entitled
			 to a refund of the unearned premium on the policy. Where such insurance was not
			 initially required by the creditor, the debtor may cancel, at any time, without
			 substituting and shall be entitled to a refund of any premium paid. If such
			 substitution or cancellation occurs within thirty (30) days of the extension of
			 credit, the entire premium shall be refunded.
(c) Any insurance written to secure an
			 underlying loan must be canceled upon the satisfaction or termination of that
			 underlying loan and a pro-rata refund of unearned premium made to the insured.
			 Debtor requested cancellation more than thirty (30) days after extension of
			 credit will result in return premium of 90% of pro-rata return premium. No
			 refunds of less than $1.00 are required.
Author:
Vincent R. Ledlow, Associate
				Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Section 482-1-093-.07 - Insurance Not To Exceed Amount Or Terms Of Loan

Current through Register Vol. 42, No. 9, June 28, 2024
No insurance sold within the scope of this chapter may exceed
				in amount of coverage the amount of indebtedness on the underlying loan nor
				exceed in duration the scheduled term of the underlying loan. Household
				contents may be insured at their replacement cost up to the original amount of
				indebtedness.
Author:
Vincent R. Ledlow, Associate
				Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Section 482-1-093-.08 - Insurance Sold By A Lender

Current through Register Vol. 42, No. 9, June 28, 2024
No insurer may issue a policy covering security for a loan made
				under the regulatory authority of the Mini Code which exceeds the replacement
				values of the property given as security for the loan or covering security for
				such a loan. If the insured elects to cancel a policy sold in connection with
				such transaction, the insurer shall remit any premium refund due. No insurer
				may issue a policy covering security for a loan made under the regulatory
				authority of the Mini Code which exceeds the replacement values of the property
				given as security for the loan or covering security for such a loan. If the
				insured elects to cancel a policy sold in connection with such transaction, the
				insurer shall remit any premium refund due.
Author:
Vincent R. Ledlow, Associate
				Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Section 482-1-093-.09 - Insurance Sold By A Dealer

Current through Register Vol. 42, No. 9, June 28, 2024
(1) No
			 insurer may write coverage in which the amount of coverage exceeds the
			 replacement cost of the goods insured.
(2) No insurer may pay a dealer or by
			 contract grant a dealer's interest in the affiliated property insurance which
			 exceeds the original indebtedness under the contract.
(3) No insurer may issue a contract of
			 insurance through a dealer which covers any goods other than those sold by that
			 dealer under the terms of the contract secured by those goods.
Author:
Vincent R. Ledlow, Associate
				Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Section 482-1-093-.10 - Rates

Current through Register Vol. 42, No. 9, June 28, 2024
(a) Credit Property
			 Insurance, other than Involuntary Unemployment Insurance. It shall be presumed
			 in any review of rates filed with the commissioner that the benefits are
			 reasonable in relation to the premium charged if the premium rates do not
			 exceed those contained in Exhibit A of this chapter. Any insurer filing rates
			 in excess of those contained in Exhibit A must demonstrate that its rates
			 produce or may reasonably be expected to produce a loss ratio of at least fifty
			 percent (50%).
(b) Involuntary
			 Unemployment Insurance. It shall be presumed in any review of rates filed with
			 the commissioner that the benefits are reasonable in relation to the premium
			 charged if the premium rates do not exceed those contained in Exhibit B of this
			 chapter. Any insurer filing rates in excess of those contained in Exhibit B
			 must demonstrate that its rates produce or may reasonably be expected to
			 produce a loss ratio of at least fifty percent (50%).
Author:
Vincent R. Ledlow, Associate
				Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Section 482-1-093-.11 - Insurer's Reports Required

Current through Register Vol. 42, No. 9, June 28, 2024
Each insurance company writing credit property insurance and/or
				involuntary unemployment insurance, as defined in this chapter, shall report
				all such insurance premium, expense, and loss information separately in the
				Credit Insurance Experience Exhibit of the annual statement or on forms
				prescribed by the Insurance Department.
Author:
Vincent R. Ledlow, Associate
				Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Section 482-1-093-.12 - Periodic Filing Requirement

Current through Register Vol. 42, No. 9, June 28, 2024
Each insurance company writing credit property insurance and/or
				involuntary unemployment insurance shall submit a filing demonstrating that its
				rates comply with the rating standard in Rule
				482-1-093-.10 no less than every
				three years. If the last approved rate filing of the insurance company was
				approved three years prior to the effective date of this chapter, the insurance
				company must file within six months from the effective date.
Author:
Vincent R. Ledlow, Associate
				Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Section 482-1-093-.13 - Separability

Current through Register Vol. 42, No. 9, June 28, 2024
If any provision of any rule of this chapter or application to
				any person or circumstance is held invalid, such invalidity shall not affect
				other provisions of that rule or application of the chapter which can be given
				effect without the invalid provisions or application and to this end the
				provisions of this chapter are declared to be severable.
Author:
Vincent R. Ledlow, Associate
				Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Section 482-1-093-.14 - Effective Date

Current through Register Vol. 42, No. 9, June 28, 2024
The provisions of this chapter, as revised, shall become
				effective upon its approval by the Commissioner of Insurance and upon its
				having been on file as a public document in the office of the Secretary of
				State for ten days. The revisions shall apply to policies sold after December
				31, 2002.
Author:
Vincent R. Ledlow, Associate
				Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Exhibit A - Credit Property Insurance

Current through Register Vol. 42, No. 9, June 28, 2024
The dual interest rates applicable to credit property insurance
				when calculated on a net monthly outstanding balance basis shall be $2.35 per
				$1,000 of outstanding indebtedness per month. Inclusion of theft coverage on a
				dual interest basis shall allow an additional charge of $.65 per $1,000 of
				outstanding indebtedness per month. Single interest rates shall be 67% of the
				dual interest rates.
If premiums are payable on a single premium basis the following
				formula shall be used to develop single premium rates from the net monthly
				outstanding balance rates set forth above:
Sp = ((N+1)/20) X Op
where Sp is the single term premium per $100 of initial
				insured indebtedness, N is the credit term in months, and Op is the net monthly
				outstanding balance rate per $1,000 of outstanding indebtedness.
Author:
Vincent R. Ledlow, Associate
				  Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE › Exhibit B - Involuntary Unemployment Insurance

Current through Register Vol. 42, No. 9, June 28, 2024
The rate applicable to involuntary unemployment insurance
				coverage shall not exceed the rates shown in Table 1 for products which use the
				monthly outstanding balance as the rating base. The rates in Table 1 assume a
				monthly indemnity equal to 3% of the monthly outstanding balance. If the
				monthly indemnity is different than 3% of the monthly outstanding balance, the
				rate shall be adjusted proportionally. The rates in Table 1 are expressed as
				the rate per $100 of outstanding balance.
TABLE 1
Benefit Period in Months
Non-retroactive Benefits for 30 day elimination
							 period and a 30 day-waiting period
Retroactive Benefits for 30 day elimination
							 period and a 30 day waiting period
3
$0.06
$0.09
6
$0.08
$0.12
9
$0.09
$0.13
12
$0.10
$0.14
The premium rate applicable to involuntary unemployment
				insurance coverage shall not exceed the rates shown in Table 2 for products
				that use the monthly benefit as the rating base. The rates are expressed as the
				rates per $100 of monthly benefit.
TABLE 2
Benefit Period in Months
Non-retroactive Benefits for 30 day elimination
							 period and a 30 day waiting period
Retroactive Benefits for 30 day elimination
							 period and a 30 day waiting period
3
$2.20
$3.15
6
$2.75
$4.00
9
$2.95
$4.30
12
$3.15
$4.45
For involuntary unemployment coverage that is purchased using
				a single premium and the term of coverage is less than ten years, the rates
				shall not exceed the product of the number of months in the term of the loan
				times the monthly rates shown in Table 3. The rates are expressed per $100 of
				monthly benefit.
TABLE 3
Benefit Period in Months
Non-retroactive Benefits for 30 day elimination
							 period and a 30 day-waiting period
Retroactive Benefits for 30 day elimination
							 period and a 30 day waiting period
3
$1.65
$2.50
6
$2.20
$3.10
9
$2.35
$3.30
12
$2.45
$3.50
The rates in Tables 1, 2, and 3 assume single coverage for
				loss of employment as a result of involuntary layoff, willful termination by
				employers, strikes, labor disputes, and lockouts. A downward deviation filing
				will be required if benefits are more restrictive than this standard.
If coverage includes benefits greater than the coverage
				contemplated in the rates set forth above and the insurer desires to charge a
				rate higher than shown above, a filing demonstrating the increase in benefits
				and proposed rate will be required.
Author:
Vincent R. Ledlow, Associate
				  Counsel
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-094 - SURPLUS NOTES › Section 482-1-094-.01 - Purpose

Current through Register Vol. 42, No. 9, June 28, 2024
The purpose of this chapter is to establish the procedures and
				guidelines for the approval of surplus notes as authorized under Section
				27-27-40,
Code of Ala.
				1975
.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-27-40,
				  27-2-7,
				  27-2-17,
				  27-27-1,
				  27-27-2.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-094 - SURPLUS NOTES › Section 482-1-094-.02 - Authority

Current through Register Vol. 42, No. 9, June 28, 2024
This chapter is made and promulgated by the undersigned
				Commissioner of Insurance pursuant to the authority set forth in Sections
				27-2-7 and
				27-2-17,
Code of Ala.
				1975
.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-27-40,
				  27-2-7,
				  27-2-17,
				  27-27-1,
				  27-27-2.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-094 - SURPLUS NOTES › Section 482-1-094-.03 - Applicability And Scope

Current through Register Vol. 42, No. 9, June 28, 2024
The provisions of this chapter shall apply to surplus notes
				issued on or after the effective date hereof.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-27-40,
				  27-2-7,
				  27-2-17,
				  27-27-1,
				  27-27-2.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-094 - SURPLUS NOTES › Section 482-1-094-.04 - Definitions

Current through Register Vol. 42, No. 9, June 28, 2024
The following words and terms, when used in this chapter, shall
				have the following meaning, unless the context clearly indicates
				otherwise.
(a) Insurer. Any domestic
			 stock or mutual insurer, as defined in Section
			 27-27-1, including mutual aid
			 associations and fraternal benefit societies, pursuant to Section
			 27-27-2.
(b) Minimum surplus or "floor." The amount of
			 surplus specified in the surplus note which may not be used for payments or
			 repayments of the surplus note and which amount must exceed the sum of (i) 10%
			 of the face amount of the surplus note plus, (ii) the greater of the statutory
			 minimum capital and surplus required by statute, rule, or regulation applicable
			 to the issuing insurer, or the total stated capital and surplus of the insurer
			 immediately before the issuance of the surplus note. The Commissioner may
			 approve a different amount if the Commissioner is satisfied such amount is
			 appropriate considering the financial condition of the insurer.
(c) Surplus notes. Surplus notes, also known
			 as "surplus debentures," "contribution certificates," "surplus capital notes,"
			 and "premium income notes, bonds, or debentures," however denominated, which
			 are financing vehicles that increase the surplus of an insurer.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-27-40,
				  27-2-7,
				  27-2-17,
				  27-27-1,
				  27-27-2.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-094 - SURPLUS NOTES › Section 482-1-094-.05 - General Provisions

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The
			 issuance of a surplus note shall not be utilized to initially capitalize an
			 insurer, other than a mutual insurer, a reciprocal or interinsurance exchange,
			 or a captive insurer.
(2) The
			 consideration received by an insurer in return for the issuance of surplus note
			 shall be in the form of cash.
(3)
			 An application for approval of a surplus note, filed in accordance with the
			 provisions of this chapter by an insurer other than a captive insurer, shall be
			 deemed approved unless the insurer is otherwise notified within fifteen (15)
			 business days after the date of filing such application. Applications for
			 approval of a surplus note filed by a captive insurer must be approved by the
			 commissioner in writing before issuance.
(4) An application for approval of the
			 payment of interest on a surplus note, according to the terms thereof, shall be
			 deemed approved unless the insurer is otherwise notified within fifteen (15)
			 business days after the date of filing such application. Such application may
			 include a request for the pre-approval of periodic payments of interest
			 extending over a period of time not exceeding twelve (12) months.
(5) An application for approval of the
			 payment of principal of such a loan, or any portion thereof, shall not be
			 deemed approved except upon written notice from the Commissioner.
(6) For the purposes of this rule, no
			 application shall be deemed filed until the date all material required and
			 sufficient to constitute a full application according to this chapter has been
			 received by the Department.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-27-40,
				  27-2-7,
				  27-2-17,
				  27-27-1,
				  27-27-2.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-094 - SURPLUS NOTES › Section 482-1-094-.06 - Written Agreements

Current through Register Vol. 42, No. 9, June 28, 2024
When issuing a surplus note, the insurer must execute a written
				agreement with the creditor, providing the following:
(a) The creditor may be paid only out of the
			 portion of the insurer's surplus that exceeds the minimum surplus stated in the
			 agreement;
(b) The minimum surplus
			 or "floor" shall exceed the sum of (i) 10% of the face amount of the surplus
			 note plus, (ii) the greater of the statutory minimum capital and surplus
			 required by statute, rule, or regulation applicable to the issuing insurer or
			 the total stated capital and surplus of the insurer immediately before the
			 issuance of the surplus note; or, the Commissioner may approve a different
			 amount if the Commissioner is satisfied such amount is appropriate, considering
			 the financial condition of the insurer;
(c) All payments of principal and interest
			 shall be subject to the prior approval of the Commissioner;
(d) In the event of liquidation, payment of
			 interest and repayment of principal under the written agreement are
			 subordinated to policyholder and beneficiary claims.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-27-40,
				  27-2-7,
				  27-2-17,
				  27-27-1,
				  27-27-2.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-094 - SURPLUS NOTES › Section 482-1-094-.07 - Filing Requirements

Current through Register Vol. 42, No. 9, June 28, 2024
(1) All
			 surplus notes issued by an insurer are subject to the prior approval of the
			 Commissioner, regardless of amount, and shall be filed at least 30 days prior
			 to the proposed date of the loan.
(2) The payment of interest or repayment of
			 principal is subject to the prior approval of the Commissioner, regardless of
			 amount, and shall be filed at least 30 days prior to the date of the proposed
			 payment.
(3) The written
			 application for approval of the issuance of a surplus note shall include at
			 least all of the following:
(a) The nature and
			 purpose of the transaction.
(b) The
			 identities of all parties to the transaction.
(c) A statement that no officers or directors
			 of a party are pecuniarily interested in the transaction (neither stock
			 ownership in, nor serving as an officer or director of the creditor shall
			 constitute a prohibited pecuniary interest, but should not be
			 disclosed).
(d) A copy of any
			 agreement between the parties relating to the transaction.
(e) Evidence that the transaction will not
			 adversely affect the interests of policyholders.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-094 - SURPLUS NOTES › Section 482-1-094-.08 - Accounting Requirements

Current through Register Vol. 42, No. 9, June 28, 2024
(1) All
			 financial statements published by any insurer or filed with the Commissioner
			 must show as a liability that portion of the insurer's surplus that exceeds the
			 minimum surplus as defined in the written agreement to the extent of the unpaid
			 principal balance thereon.
(2) All
			 agreements shall be clearly reported in an insurer's "Notes to Financial
			 Statements" of the Annual Statement indicating that payment of interest and
			 repayment of principal are subject to the prior approval of the Commissioner.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-27-40,
				  27-2-7,
				  27-2-17,
				  27-27-1,
				  27-27-2.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-094 - SURPLUS NOTES › Section 482-1-094-.09 - Separability

Current through Register Vol. 42, No. 9, June 28, 2024
If any provision of this chapter or the application thereto to
				any person or circumstance is for any reason held to be invalid, the remainder
				of the chapter and the application of such provision to other persons or
				circumstance shall not be affected thereby.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-27-40,
				  27-2-7,
				  27-2-17,
				  27-27-1,
				  27-27-2.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-094 - SURPLUS NOTES › Section 482-1-094-.10 - Effective Date

Current through Register Vol. 42, No. 9, June 28, 2024
This chapter shall become effective on January 1, 1993.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-27-40,
				  27-2-7,
				  27-2-17,
				  27-27-1,
				  27-27-2.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-096 - PLACEMENT OF INSURANCE THROUGH ALIEN UNAUTHORIZED INSURERS › Section 482-1-096-.01 - Authority

Current through Register Vol. 42, No. 9, June 28, 2024
The authority for the promulgation of this chapter is under the
				provision of Sections
				27-2-17 and
				27-10-1,
et
seq
.,
Code of
				Ala. 1975
.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17;
				  27-10-1,
et
seq
.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-096 - PLACEMENT OF INSURANCE THROUGH ALIEN UNAUTHORIZED INSURERS › Section 482-1-096-.02 - Purpose

Current through Register Vol. 42, No. 9, June 28, 2024
This chapter is to carry out the provisions of the Unauthorized
				Insurers and Surplus Lines Act, Section
				27-10-1,
et
seq
.,
Code of
				Ala. 1975
, to the extent applicable to alien insurers, by
				promoting the following purposes:
(a)
			 Protecting persons seeking insurance in this state; and
(b) Permitting surplus lines insurance to be
			 placed with reputable and financially sound non-admitted insurers under certain
			 conditions.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17;
				  27-10-1,
et
seq
.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-096 - PLACEMENT OF INSURANCE THROUGH ALIEN UNAUTHORIZED INSURERS › Section 482-1-096-.03 - Definitions

Current through Register Vol. 42, No. 9, June 28, 2024
As used in this chapter:
(a) Alien insurer. An insurer formed under
			 the laws of any other country other than the United States of America, its
			 states, district, territory and commonwealths which does not hold a certificate
			 of authority to engage in insurance transactions in this state.
(b) Recognized financial institution. Any
			 financial institution qualified under Section
			 27-5-12(b)(2)
			 e.4.,
Code of Ala. 1975
.
(c) Financially sound. An unauthorized alien
			 insurer is financially sound when it is possessed of admissible assets at least
			 equal to all due or accrued liabilities (including unearned premium and claim
			 reserves) and other required reserves, together with its total issued and
			 outstanding capital stock, if a stock insurer, or the minimum surplus, if a
			 Lloyd's plan or mutual insurer, amounting to at least the requirements of
			 either Section
			 27-10-26(b)(1) or
			 Section 27-10-26(b)(2),
Code of Ala. 1975
, as appropriate.
(d) Admissible assets. Any asset of an
			 insurer permitted by the Commissioner of Insurance to be taken into account in
			 any determination of the financial condition of such insurer.
(e) Authorized insurer. An insurer duly
			 authorized, by a subsisting certificate of authority issued by the
			 Commissioner, to transact insurance in this state.
(f) Affiliates. Such term shall include an
			 "affiliate" of, or person "affiliated" with, a specific person, and shall mean
			 a person that directly, or indirectly through one or more intermediaries,
			 controls, or is controlled by, or is under common control with, the person
			 specified. "Control" shall mean the possession, direct or indirect, of the
			 power to direct or cause the direction of the management and policies of a
			 person, whether through the ownership of voting securities, by contract other
			 than a commercial contract for goods or nonmanagement services, or otherwise,
			 unless the power is the result of an official position with or corporate office
			 held by the person.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17;
				  27-10-1,
et
seq
.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-096 - PLACEMENT OF INSURANCE THROUGH ALIEN UNAUTHORIZED INSURERS › Section 482-1-096-.04 - Eligibility Of Alien Insurers

Current through Register Vol. 42, No. 9, June 28, 2024
Surplus lines insurance may be placed with alien insurers only
				if the insurer:
(a) Has established
			 satisfactory evidence of good repute and financial integrity.
(b) Is authorized as an insurer to insure
			 risks in its country of domicile; has transacted insurance under such authority
			 in its country of domicile for not less than the immediately past five years,
			 unless wholly owned by an authorized insurer; and is actively regulated as an
			 insurer by its country of domicile pursuant to regulations which mandate
			 adequate reserving and financial integrity.
(c) If not authorized to transact insurance
			 in at least one state of the United States, has established an effective trust
			 fund of at least $2,500,000 within the United States administered by a
			 recognized financial institution and held for the benefit of its policyholders
			 or policyholders and creditors and consisting of cash, securities, or of
			 investments of substantially the same character and quality as those which are
			 eligible investments for the capital and statutory reserves of admitted
			 insurers authorized to write like kinds of insurance in this state. Such trust
			 fund, which shall be included in any calculation of capital and surplus or its
			 equivalent, shall have an expiration date which at no time shall be less than
			 five (5) years. The recognized financial institution administering the trust
			 shall be independent of any person affiliated with the alien insurer.
(d) Is financially sound.
(e)
1. Has
			 provided to the Commissioner and the surplus lines broker a copy of its current
			 annual statement certified by such insurer. The annual statement shall be
			 provided each year to the Commissioner within thirty (30) days from the time it
			 is submitted to the regulatory agency in the insurer's country of domicile, and
			 must be either:
(i) Filed with and approved
			 by the regulatory authority in the country of domicile of the insurer,
			 or
(ii) Certified by an accounting
			 or auditing firm licensed either in the country of domicile of the insurer or
			 in the United States.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-096 - PLACEMENT OF INSURANCE THROUGH ALIEN UNAUTHORIZED INSURERS › Section 482-1-096-.05 - Determination Of Financial Soundness

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The following shall be the minimum
			 considerations for determining the financial soundness of an alien surplus
			 lines insurer:
(a) The value of any assets to
			 be considered in the determination of financial soundness shall be readily
			 ascertainable.
(b) The language
			 contained in the required trust agreement shall be consistent with the
			 requirements of the NAIC regarding alien non-admitted insurers, except as to
			 the minimum amount of the trust fund.
(c) The annual financial statement of each
			 surplus lines company shall accurately reference the admissible assets,
			 liabilities, capital, and/or surplus of the insurer as of year-end of the
			 preceding year.
(d) No surplus
			 lines insurer shall retain any risks on any one subject of insurance in an
			 amount exceeding 10% of its surplus to policyholders.
(e) No surplus lines insurer shall exceed a
			 net premiums written to policyholder surplus ratio of 3.5 to 1.
(f) No surplus lines insurer shall maintain
			 an admitted assets to premiums written ratio of less than 1.
(g) Any securities maintained for the benefit
			 of U.S. policyholders shall be on the list of the "Securities Valuation Office"
			 of the NAIC as being eligible for amortization and classed as 1, 2, or 3
			 (highest, high, or medium quality).
(h) Any alien non-admitted insurer on the
			 listing of the Non-Admitted Insurers Information Office of the NAIC shall be
			 deemed to be in compliance with these financial requirements, until otherwise
			 determined by the Commissioner.
(i)
			 The company shall adjust the amount of assets in its statutory trust fund
			 according to its premium volume, policy limits, reinsurance, reserves, and
			 liabilities so that the trust fund provides adequate protection to
			 policyholders and creditors. The Commissioner may require periodic increases or
			 allow decreases in the amount held in the statutory trust, except that the
			 trust amount shall never be less than the minimum statutory
			 requirement.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-096 - PLACEMENT OF INSURANCE THROUGH ALIEN UNAUTHORIZED INSURERS › Section 482-1-096-.06 - Miscellaneous

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The
			 Commissioner may require the submission of audited financial statements. Such
			 statements shall be certified by an independent certified or chartered public
			 accountant licensed and in good standing with all jurisdictions in which the
			 accountant is licensed to practice.
(2) At the time of filing its annual
			 statement, the company shall provide to the Commissioner an organizational
			 chart of the company and any affiliated entities, including the names,
			 addresses, and social security or other appropriate number of each of the board
			 members and officers of the company and any affiliated entity, as well as the
			 same information of the owners or persons in control of the company and any
			 affiliated entities.
(3) For
			 determinations related to financial soundness or the admissibility of assets,
			 NAIC manuals and publications and the Alabama Insurance Code may be used as
			 guidelines.
(4) Prior to insuring
			 any risk resident or located in this state, an alien unauthorized insurer shall
			 register with the Commissioner by providing the documents and information
			 contained in this chapter and by providing the name and address of the person
			 designated by the company to receive service of process in this
			 state.
(5) The Commissioner may
			 require any alien unauthorized insurer to submit documents and information
			 needed to determine the eligibility, financial soundness, and compliance with
			 Alabama statutes and this chapter.
(6) Any credit extended by the surplus lines
			 broker to any producing agent or broker shall be done at the peril of the
			 surplus lines broker.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17;
				  27-10-1,
et
seq
.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-096 - PLACEMENT OF INSURANCE THROUGH ALIEN UNAUTHORIZED INSURERS › Section 482-1-096-.07 - Severability

Current through Register Vol. 42, No. 9, June 28, 2024
If any provision of this chapter or the application thereof to
				any person or circumstances is for any reason held to be invalid, the remainder
				of this chapter and the application of such provision to other persons or
				circumstances shall not be affected thereby.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17;
				  27-10-1,
et
seq
.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-096 - PLACEMENT OF INSURANCE THROUGH ALIEN UNAUTHORIZED INSURERS › Section 482-1-096-.08 - Effective Date

Current through Register Vol. 42, No. 9, June 28, 2024
This chapter shall become effective ten (10) days from the date
				of certification that the properly executed chapter was delivered to the
				Secretary of State.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17;
				  27-10-1,
et
seq
.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-097 - NAIC ACCOUNTING PRACTICES AND PROCEDURES AND INSURER REPORTING REQUIREMENTS › Section 482-1-097-.01 - Authority

Current through Register Vol. 42, No. 9, June 28, 2024
This chapter is promulgated by the Commissioner of Insurance
				pursuant to Section
				27-2-17, Code of Alabama
				1975.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17,
				  27-1-2,
				  27-3-26,
				  10-4-113,
				  27-21A-8,
				  27-30-22,
				  27-31-16,
				  27-34-36.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-097 - NAIC ACCOUNTING PRACTICES AND PROCEDURES AND INSURER REPORTING REQUIREMENTS › Section 482-1-097-.02 - Purpose

Current through Register Vol. 42, No. 9, June 28, 2024
The purpose of this chapter is to establish uniform
				requirements for manual and automated reporting of annual and quarterly
				statement information for all authorized insurers.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17,
				  27-1-2,
				  27-3-26,
				  10-4-113,
				  27-21A-8,
				  27-30-22,
				  27-31-16,
				  27-34-36.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-097 - NAIC ACCOUNTING PRACTICES AND PROCEDURES AND INSURER REPORTING REQUIREMENTS › Section 482-1-097-.03 - Scope

Current through Register Vol. 42, No. 9, June 28, 2024
This chapter applies to all authorized insurers, as defined in
				Section 27-1-2, Code of Alabama 1975,
				including those insurers required to file an annual statement in accordance
				with Section
				27-3-26, Code of Alabama 1975, as
				well as health care service plans, health maintenance organizations, mutual aid
				associations, reciprocal insurers, and fraternal benefit societies, required to
				file an annual statement in accordance with Section
				10-4-113,
				27-21A-8,
				27-30-22,
				27-31-16, and
				27-34-36, respectively.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17,
				  27-1-2,
				  27-3-26,
				  10-4-113,
				  27-21A-8,
				  27-30-22,
				  27-31-16,
				  27-34-36.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-097 - NAIC ACCOUNTING PRACTICES AND PROCEDURES AND INSURER REPORTING REQUIREMENTS › Section 482-1-097-.04 - Accounting Practices And Procedures

Current through Register Vol. 42, No. 9, June 28, 2024
When submitting required financial reports to the department,
				all insurers shall use the appropriate NAIC Annual Statement Blank which shall
				be prepared in accordance with the NAIC Annual Statement Instructions and
				follow those accounting practices and procedures prescribed by the NAIC
				Accounting Practices & Procedures Manual, except when in conflict with
				Alabama statutes or other Alabama Insurance Department Regulations.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17,
				  27-1-2,
				  27-3-26,
				  10-4-113,
				  27-21A-8,
				  27-30-22,
				  27-31-16,
				  27-34-36.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-097 - NAIC ACCOUNTING PRACTICES AND PROCEDURES AND INSURER REPORTING REQUIREMENTS › Section 482-1-097-.06 - NAIC Financial Examiners And Market Conduct Handbook Adopted

Current through Register Vol. 42, No. 9, June 28, 2024
The NAIC Financial Examiners Handbook, as it may be updated and
				amended from time to time so long as the examination methodology remains
				substantially consistent, is hereby adopted and incorporated by reference.
				Financial examinations by the Department shall be performed in substantial
				conformity with the methodology outlined in the Handbook, so long as that
				methodology is consistent with statutory accounting principles and the Alabama
				Insurance Code. The NAIC Market Conduct Handbook, as it may be updated and
				amended from time to time so long as the examination methodology remains
				substantially consistent, is hereby adopted and incorporated by reference. A
				copy of the Handbook may be obtained from the NAIC. A copy of the Handbook may
				be inspected during regular business hours at the offices of the Alabama
				Department of Insurance, Financial Examiners Division.
Rule 482-1-097-.06,
Manual And Automated
				  Reporting
, was repealed and previous rule .07 was renumbered to
				  .06 as per certification filed November 12,
				  2008.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17,
				  27-1-2,
				  27-3-26,
				  10-4-113,
				  27-21A-8,
				  27-30-22,
				  27-31-16,
				  27-34-36.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-097 - NAIC ACCOUNTING PRACTICES AND PROCEDURES AND INSURER REPORTING REQUIREMENTS › Section 482-1-097-.07 - Exemptions

Current through Register Vol. 42, No. 9, June 28, 2024
Upon written application of any insurer, the Commissioner may
				grant an exemption from compliance with the electronic filing requirements of
				this chapter if the Commissioner finds, upon review of the application, that
				compliance with this chapter would constitute a financial or organizational
				hardship upon the insurer. An exemption may be granted at any time and from
				time to time for a specified period or periods. Within ten (10) days from a
				denial of an insurer's written request for an exemption from this chapter, such
				insurer may request in writing a hearing on its application for an exemption.
				Such hearing shall be held in accordance with Chapter
				482-1-065.
Previous rule .08 was renumbered to .07 as per certification
				  filed November 12, 2008.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17,
				  27-1-2,
				  27-3-26,
				  10-4-113,
				  27-21A-8,
				  27-30-22,
				  27-31-16,
				  27-34-36.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-097 - NAIC ACCOUNTING PRACTICES AND PROCEDURES AND INSURER REPORTING REQUIREMENTS › Section 482-1-097-.08 - Exemptions

Current through Register Vol. 42, No. 9, June 28, 2024
Upon written application of any insurer, the Commissioner may
				grant an exemption from compliance with the automated filing requirements of
				this chapter if the Commissioner finds, upon review of the application, that
				compliance with this chapter would constitute a financial or organizational
				hardship upon the insurer. An exemption may be granted at any time and from
				time to time for a specified period or periods. Within ten (10) days from a
				denial of an insurer's written request for an exemption from this chapter, such
				insurer may request in writing a hearing on its application for an exemption.
				Such hearing shall be held in accordance with Chapter 482-1-065.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17,
				  27-1-2,
				  27-3-26,
				  10-4-113,
				  27-21A-8,
				  27-30-22,
				  27-31-16,
				  27-34-36.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-097 - NAIC ACCOUNTING PRACTICES AND PROCEDURES AND INSURER REPORTING REQUIREMENTS › Section 482-1-097-.09 - Penalties

Current through Register Vol. 42, No. 9, June 28, 2024
Failure to comply with any part of this chapter may result in
				the suspension or revocation of an authorized insurer's certificate of
				authority in this state, the assessment of a fine, or by both.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17,
				  27-1-2,
				  27-3-26,
				  10-4-113,
				  27-21A-8,
				  27-30-22,
				  27-31-16,
				  27-34-36.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-097 - NAIC ACCOUNTING PRACTICES AND PROCEDURES AND INSURER REPORTING REQUIREMENTS › Section 482-1-097-.10 - Severability

Current through Register Vol. 42, No. 9, June 28, 2024
If any rule or portion of a rule of this chapter or the
				applicability thereof to any person or circumstance is held invalid by a court,
				the remainder of the chapter or the applicability of such provision to other
				persons or circumstances shall not be affected thereby.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17,
				  27-1-2,
				  27-3-26,
				  10-4-113,
				  27-21A-8,
				  27-30-22,
				  27-31-16,
				  27-34-36.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-097 - NAIC ACCOUNTING PRACTICES AND PROCEDURES AND INSURER REPORTING REQUIREMENTS › Section 482-1-097-.11 - Effective Date

Current through Register Vol. 42, No. 9, June 28, 2024
This chapter shall become effective January 1, 2001, upon its
				approval by the Commissioner of Insurance and upon its having been on file as a
				public document in the office of the Secretary of State for ten days. All
				authorized insurers shall comply with this chapter for the year ending December
				31, 2000, and each reporting period thereafter, unless the Commissioner permits
				otherwise.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17,
				  27-1-2,
				  27-3-26,
				  10-4-113,
				  27-21A-8,
				  27-30-22,
				  27-31-16,
				  27-34-36.
Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-098 - VALUATION OF INVESTMENTS › Section 482-1-098-.01 - Authority

Current through Register Vol. 42, No. 9, June 28, 2024
This chapter is promulgated by the Commissioner of Insurance
				pursuant to Section
				27-2-17,
Code of Ala.
				1975
.
Author:
Commissioner of
				Insurance
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.