Section 27-27-1 Definitions. For the purposes of this chapter, the following terms shall have the meanings respectively ascribed to them by this section: (1) STOCK INSURER. An incorporated insurer with capital divided into shares and owned by its stockholders. (2) DOMESTIC MUTUAL INSURER. An incorporated insurer without capital stock and the governing body of which […]
Section 27-27-10 Solicitation permit – Bond or deposit in lieu thereof; waiver of same. (a) Except as to proposed domestic insurers which are subject to the requirements of Section 27-27-16, the commissioner shall not issue a solicitation permit until the applicant therefor has filed with him a corporate surety bond in the penalty of $15,000.00 […]
Section 27-27-11 Licensing of securities salesmen. Solicitation for sale of securities under a solicitation permit shall be made only by individuals licensed as securities salesmen pursuant to the provisions of the Alabama Securities Act. (Acts 1971, No. 407, p. 707, §507.)
Section 27-27-12 Deposit of solicitation permit funds in escrow – Requirement. (a) All funds received in Alabama pursuant to a solicitation permit, other than advance premiums for insurance which are subject to Section 27-27-18, shall, by the permit holder, be deposited and held in escrow in a bank or trust company located in this state […]
Section 27-27-13 Deposit of solicitation permit funds in escrow – Withdrawal and refund. The commissioner shall withdraw all funds held in escrow under Section 27-27-12, and refund to securities subscribers or purchasers all sums paid in on securities subscriptions, less that part of such sums paid in as has been allowed and used for promotion, […]
Section 27-27-14 Solicitation permit for subsequent financing. (a) No insurer, or insurance holding corporation, or stock corporation for financing operations of a mutual insurer, or attorney-in-fact corporation, or a reciprocal insurer, or any other type of organization existing for the same purpose, after: (1) It has received a certificate of authority, if an insurer, in […]
Section 27-27-15 Domestic mutual insurers – Authorization to transact insurance. (a) When newly organized, a domestic mutual insurer may be authorized to transact any one of the kinds of insurance listed in the schedule contained in subsection (b) of this section. (b) When applying for an original certificate of authority, the insurer must be otherwise […]
Section 27-27-16 Domestic mutual insurers – Bond or deposit in lieu thereof. (a) Before soliciting any applications for insurance required under Section 27-27-15, as qualification for the original certificate of authority, the incorporators of the proposed mutual insurer shall file with the commissioner a corporate surety bond in the penalty of $15,000.00 in favor of […]
Section 27-27-17 Domestic mutual insurers – Solicitation of qualifying applications for insurance. (a) Upon receipt of the commissioner’s approval of the bond or deposit as provided in Section 27-27-16 the directors and officers of the proposed domestic mutual insurer may commence solicitation of such requisite applications for insurance policies as they may accept and may […]
Section 27-27-18 Domestic mutual insurers – Deposit in trust of premiums or fees on qualifying applications. (a) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company in this state under a written trust agreement approved […]
Section 27-27-19 Domestic mutual insurers – Failure to complete organization. If the proposed domestic mutual insurer fails to complete its organization and to secure its original certificate of authority within one year from, and after, date of its certificate of incorporation, the corporation shall transact no further business, and the commissioner shall return, or cause […]
Section 27-27-2 Applicability of chapter. This chapter shall apply only to domestic stock insurers and domestic mutual insurers; except, that: (1) Sections 27-27-4 through 27-27-14, relative to sale of securities or other financing of insurers or insurance operations, and subsection (b) of Section 27-27-24 shall also apply as to foreign and alien insurers; and (2) […]
Section 27-27-20 Domestic mutual insurers – Authorization to transact additional kinds of insurance. A domestic mutual insurer, after being authorized to transact one kind of insurance, may be authorized by the commissioner to transact such additional kinds of insurance as are permitted under Section 27-3-6, while otherwise in compliance with this title and while maintaining […]
Section 27-27-21 Domestic mutual insurers – Membership. (a) Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer with all rights and obligations of such membership, and the policy shall so specify. (b) Any individual, or firm or any public or private corporation, board, or association […]
Section 27-27-22 Domestic mutual insurers – Bylaws. (a) A domestic mutual insurer shall have bylaws for the government of its affairs. The initial board of directors of a domestic mutual insurer shall adopt original bylaws, subject to the approval of the insurer’s members at the next succeeding meeting. The members shall have power to make, […]
Section 27-27-23 Directors of domestic insurers – Number; election; qualifications. (a) The affairs of every domestic insurer shall be managed by not less than three directors, and at least one-third of the directors shall be bona fide residents of this state. (b) Directors must be elected by the members or stockholders of a domestic insurer […]
Section 27-27-24 Directors of domestic insurers – Removal; vacancies. (a) At a special meeting of stockholders or members called for that purpose, any director of a stock or mutual insurer may be removed from office by an affirmative vote of stockholders or members holding in the aggregate a majority of the voting power of all […]
Section 27-27-25 Corrupt or dishonest practices in meeting of stockholders or members. No person shall buy, or sell or barter a vote or proxy relative to any meeting of stockholders or members of an insurer or engage in any corrupt or dishonest practice in, or relative to, the conduct of any such meeting. Violation of […]
Section 27-27-26 Pecuniary interests of officers, etc., of domestic insurers. (a) No officer or director of a domestic insurer, and no member of any committee or employee of a domestic insurer who is charged with the duty of investing or handling the funds of the insurer, shall do any of the following: (1) Deposit or […]
Section 27-27-27 Exclusive management and production of business contracts by domestic insurers. (a) No domestic insurer shall hereafter make any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the substantial exclusion of its board of directors or to have the controlling or preemptive right to […]
