§ 27-3-7 — Authority to Transact Insurance - Kind or Combinations of Kinds - Minimum Paid-In Capital Stock and Surplus

Alabama § 27-3-7

• Jurisdiction: Alabama
• Title 27: Insurance
• Ch. 3: Authorization of Insurers

Text

(a) To qualify for authority to transact any one kind of insurance, as defined in Chapter 5 of this title, or combination of kinds of insurance as shown below, an insurer applying for its original certificate of authority in this state after the effective date of this title or continuing such original certificate of authority shall possess and thereafter maintain unimpaired paid-in capital stock, if a stock insurer, or unimpaired surplus, if a foreign mutual or foreign reciprocal insurer, in amount not less than as applicable under the schedule below and shall possess when first so authorized such additional funds as surplus as are required under Section 27-3-8:
Kind or kinds of insurance
Minimum capital or surplus required
Life
$800,000.00
Disability
500,000.00
Life and disability
800,000.00
Property
300,000.00
Marine
300,000.00
Casualty
400,000.00
Surety
350,000.00
Title
200,000.00
Multiple lines -
Any two or more: Property, marine, casualty, surety; and all kinds of insurance other than title and life insurance
500,000.00
(b) An insurer holding a valid certificate of authority to transact insurance in this state immediately prior to the effective date of this title may continue to be authorized to transact the same kinds of insurance as permitted by such certificate of authority by maintaining thereafter not less than the same amount of paid-in capital stock, if a stock insurer, or not less than the same amount of surplus, if a mutual or reciprocal insurer, as required by the laws of this state for such authority immediately prior to such effective date; but such insurer shall not thereafter be granted authority to transact any other or additional kind of insurance unless it then fully complies with the requirements as to capital and surplus, as applied to all kinds of insurance it then proposes to transact, as provided by this title with respect to insurers applying for original certificates of authority under this title.
(c) Capital and surplus requirements shall be based upon all the kinds of insurance actually transacted, or to be transacted, by the insurer in any and all areas in which it operates, whether or not only a portion of such kinds are to be transacted in this state.
(d) As to surplus required for qualification to transact one or more kinds of insurance and thereafter to be maintained, domestic mutual insurers shall be governed by Chapter 27 of this title, and domestic reciprocal insurers shall be governed by Chapter 31 of this title.
(e) A life insurer may also grant annuities without additional capital or additional surplus.
(f) A casualty insurer may be authorized to transact also disability insurance without additional capital or additional surplus.

Legislative History

(Code 1940, T. 28, §1; Acts 1965, 2nd Ex. Sess., No. 143, p. 194; Acts 1971, No. 407, p. 707, §54; Acts 1975, No. 1041, p. 2086, §1.)