Ala. Admin. Code r. 482-1-063-.02

Current through Register Vol. 43, No. 02, November 27, 2024

Section 482-1-063-.02 - Minimum Surplus Required Before Policies Of Insurance May Be Issued

(1) When the total surplus (to include both paid in and contributed and unassigned surplus) of a stock insurer falls below $100,000.00 and the surplus of a mutual insurer falls below $200,000.00, the concerned insurer must immediately notify the Insurance Department of such fact. The insurer is given 60 days from the time of determination that its surplus falls below the above minimum to make good any deficit.

(2) An insurer whose surplus is below the minimum set forth in Rule 482-1-063-.02(1) above and who has failed to make good the deficit within the 60 day period must, at the conclusion of the 60 day period, immediately cease issuing new policies of insurance and notify its agents to cease writing and accepting contracts of insurance.

(3) The above requirement shall not forbid the insurer whose surplus is below the minimum from servicing existing business to include collecting premiums and the payment of claims.

Author: Commissioner of Insurance

Ala. Admin. Code r. 482-1-063-.02

New Rule: March 24, 1977; effective April 3, 1977. Revised: December 22, 2004; effective January 1, 2005. Filed with LRS December 22, 2004. Rule is not subject to the Alabama Administrative Procedure Act.

Statutory Authority:Code of Ala. 1975, § 27-2-17.