Section 27-31B-1 – Short Title.
Section 27-31B-1 Short title. This chapter shall be known and may be cited as the “Alabama Captive Insurers Act.” (Act 2006-509, p. 1153, §1.)
Section 27-31B-10 – Examinations and Investigations.
Section 27-31B-10 Examinations and investigations. (a) At least once in three years, and whenever the commissioner determines it to be prudent, the commissioner shall visit each captive insurance company and thoroughly inspect and examine its affairs to ascertain its financial condition, its ability to fulfill its obligations, and whether it has complied with this chapter. […]
Section 27-31B-11 – Grounds and Procedures for Suspension or Revocation of License.
Section 27-31B-11 Grounds and procedures for suspension or revocation of license. (a) The license of a captive insurance company to do an insurance business in this state may be suspended or revoked by the commissioner for any of the following reasons: (1) Insolvency or impairment of capital or surplus. (2) Failure to meet the requirements […]
Section 27-31B-12 – Legal Investments.
Section 27-31B-12 Legal investments. (a) An association captive insurance company, risk retention group, and an industrial insured captive insurance company insuring the risks of an industrial insured group defined in paragraph b. of subdivision (19) of Section 27-31B-2 shall comply with the investment requirements contained in this title, as applicable; provided, however, that compliance with […]
Section 27-31B-13 – Reinsurance.
Section 27-31B-13 Reinsurance. (a) A captive insurance company may provide reinsurance, as authorized in this title, on risks ceded by any other insurer. (b) A captive insurance company may take credit for reserves on risks or portions of risks ceded to reinsurers complying with Sections 27-5B-4 through 27-5B-9. A captive insurer shall not take credit […]
Section 27-31B-14 – Rating Organizations; Memberships.
Section 27-31B-14 Rating organizations; memberships. No captive insurance company may be required to join a rating organization. (Act 2006-509, p. 1153, §1.)
Section 27-31B-15 – Exemption From Compulsory Associations.
Section 27-31B-15 Exemption from compulsory associations. No captive insurance company, including a captive insurance company organized as a reciprocal insurer under this chapter, may join or contribute financially to any plan, pool, association, or guaranty or insolvency fund in this state. No captive insurance company, or its insured, or its parent or any affiliated company, […]
Section 27-31B-16 – Tax on Premiums Collected.
Section 27-31B-16 Tax on premiums collected. (a) Each captive insurance company shall pay to the commissioner, by March 1 of each year, a tax at the rate of four-tenths of one percent on the first 20 million dollars, three-tenths of one percent on the next 20 million dollars, two-tenths of one percent on the next […]
Section 27-31B-17 – Rules.
Section 27-31B-17 Rules. The commissioner may establish and from time to time amend rules relating to captive insurance companies as are necessary to enable the commissioner to carry out this chapter. (Act 2006-509, p. 1153, §1.)
Section 27-31B-18 – Laws Applicable.
Section 27-31B-18 Laws applicable. No provisions of this title, other than those contained in this chapter or referring specifically to captive insurance companies, shall apply to captive insurance companies. (Act 2006-509, p. 1153, §1.)
Section 27-31B-19 – Delinquency.
Section 27-31B-19 Delinquency. (a) Except as otherwise provided in this section, the terms and conditions set forth in Chapter 32 and Article 2, commencing with Section 27-2-50, of Chapter 2, pertaining to rehabilitation, reorganization, conservation, and liquidation of insurers, shall apply in full to captive insurance companies formed or licensed under this chapter. (b) In […]
Section 27-31B-2 – Definitions.
Section 27-31B-2 Definitions. As used in this chapter, the following terms shall have the following meanings, unless the context clearly indicates otherwise: (1) AFFILIATED COMPANY. Any company in the same corporate system as a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management. (2) AGENCY CAPTIVE INSURANCE […]
Section 27-31B-20 – Rules for Controlled Unaffiliated Business.
Section 27-31B-20 Rules for controlled unaffiliated business. The commissioner shall adopt rules establishing standards to ensure that a parent or affiliated company is able to exercise control of the risk management function of any controlled unaffiliated business to be insured by the captive insurance company. Until the rules under this section are adopted, the commissioner […]
Section 27-31B-21 – Conversion to or Merger With Reciprocal Insurer.
Section 27-31B-21 Conversion to or merger with reciprocal insurer. (a) An association captive insurance company or industrial insured group formed as a stock or mutual corporation may be converted to or merged with and into a reciprocal insurer in accordance with a plan therefor and this section. (b) A plan for this conversion or merger […]
Section 27-31B-22 – Protected Cell Captive Insurance Companies.
Section 27-31B-22 Protected cell captive insurance companies. (a) One or more sponsors may form a protected cell captive insurance company under this chapter. (b) A protected cell captive insurance company formed or licensed under this chapter may establish and maintain one or more protected cells to insure risks of one or more participants, subject to […]
Section 27-31B-23 – Qualification of Sponsors.
Section 27-31B-23 Qualification of sponsors. Repealed by Act 2016-191, §3, effective July 1, 2016. (Act 2006-509, p. 1153, §1.)
Section 27-31B-24 – Participants in Protected Cell Captive Insurance Companies.
Section 27-31B-24 Participants in protected cell captive insurance companies. (a) An association, corporation, limited liability company, partnership, trust, or other business entity may be a participant in a protected cell captive insurance company formed or licensed under this chapter. (b) A sponsor may be a participant in a protected cell captive insurance company. (c) A […]
Section 27-31B-25 – Incorporation of Protected Cells.
Section 27-31B-25 Incorporation of protected cells. (a) A protected cell of a protected cell captive insurance company may be formed as an incorporated protected cell. (b) Subject to the prior written approval of the protected cell captive insurance company and of the commissioner, an incorporated protected cell shall be entitled to enter into contracts and […]
Section 27-31B-26 – Approval of Stock Captive Insurer to Become a Mutual Captive Insurer.
Section 27-31B-26 Approval of stock captive insurer to become a mutual captive insurer. A stock captive insurer may become a mutual captive insurer under the plan or procedure as may be approved by the commissioner. The commissioner shall not approve any such plan, procedure, or mutualization unless: (1) It is equitable to stockholders and policyholders; (2) […]
Section 27-31B-27 – Redomestication of Captive Insurance Companies.
Section 27-31B-27 Redomestication of captive insurance companies. (a) Notwithstanding any other method authorized by law, a foreign or alien captive insurance company may become a domestic captive insurance company by complying with all of the requirements of this chapter relative to the organization and licensing of a domestic captive insurance company of the same type […]