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Home » US Law » 2022 Code of Alabama » Title 27 - Insurance. » Chapter 12 - Trade Practices Law. » Section 27-12-16 – Common Ownership, Management, and Directorships.

Section 27-12-16

Common ownership, management, and directorships.

(a) Any insurer may retain, invest in or acquire, the whole or any part of, the capital stock of any other insurer, or insurers, or have a common management with any other insurer, or insurers, unless such retention, investment, acquisition, or common management is inconsistent with any other provision of this title or unless, by reason thereof, the business of such insurers with the public is conducted in a manner which substantially lessens competition generally in the insurance business.

(b) Any person otherwise qualified may be a director of two or more insurers which are competitors, unless the effect thereof is to lessen substantially competition between insurers generally.

(Acts 1971, No. 407, p. 707, §242.)