§ 27-5B-3 — Credit Allowed a Domestic Ceding Insurer

Alabama § 27-5B-3

• Jurisdiction: Alabama
• Title 27: Insurance
• Ch. 5B: Reinsurance

Text

(a) Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of Section 27-5B-4, 27-5B-5, 27-5B-6, 27-5B-7, 27-5B-8, 27-5B-8.1, or 27-5B-9.
(b) The commissioner may adopt by rule specific additional requirements relating to any of the following:
(1) The valuation of assets or reserve credits.
(2) The amount and forms of security supporting reinsurance arrangements described in subsection (b) of Section 27-5B-19.
(3) The circumstances pursuant to which credit shall be reduced or eliminated.
(c) Credit shall be allowed under Section 27-5B-4, 27-5B-5, or 27-B5-6 only as respects cessions of those kinds or classes of business which the assuming insurer is licensed or otherwise permitted to write or assume in its state of domicile or, in the case of a U.S. branch of an alien assuming insurer, in the state through which it is entered and licensed to transact insurance or reinsurance. Credit shall be allowed under Section 27-5B-6 or 27-5B-7 only if the applicable requirements of Section 27-5B-10 have been satisfied.

Legislative History

(Act 2013-209, p. 463, §1; Act 2021-235, §1.)