§ 27-30-18 — Deposit - Amounts; Purpose; Kind

Alabama § 27-30-18

• Jurisdiction: Alabama
• Title 27: Insurance
• Ch. 30: Mutual Aid Associations

Text

(a) Each mutual aid association shall, prior to issuance of its certificate of authority, deposit and thereafter maintain on deposit with the Treasurer of the State of Alabama securities of the kind authorized under subsection (d) of this section, in the amount of not less than $5,000.00. If in any calendar year the gross premium receipts of the association from business done within this state exceed $50,000.00, the association shall, not later than the March 30 next following such calendar year, increase the amount of its deposit so made and maintained in accordance with the following schedule:
Gross premium receipts during calendar year
Amount of deposit required
More than
$50,000 but less than
$150,000
$10,000
Equal to
150,000 but less than
250,000
15,000
Equal to
250,000 but less than
350,000
20,000
Equal to
350,000 but less than
500,000
25,000
Equal to
500,000 but less than
750,000
50,000
Equal to
750,000 but less than
1,000,000
75,000
Equal to
1,000,000 or more
100,000
(b) Any such deposit is so made and shall be so held by the State Treasurer in trust for the benefit and protection of the contract or policyholders in this state of the depositing mutual aid association.
(c) The term “gross premium receipts” as used in this section shall include all sums received by the association as fees, dues, premiums, contributions, or by whatever other name called from its contract or policyholders as consideration for, or in connection with, such contracts and policies.
(d) All such deposits shall consist of assets, approved by the commissioner, such as are eligible for deposit generally under subsection (a) of Section 27-6-3.

Legislative History

(Acts 1935, No. 114, p. 165; Acts 1971, No. 407, p. 707, §574.)