Ala. Admin. Code r. 482-1-094-.05

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

Section 482-1-094-.05 - General Provisions

(1) The issuance of a surplus note shall not be utilized to initially capitalize an insurer, other than a mutual insurer, a reciprocal or interinsurance exchange, or a captive insurer.

(2) The consideration received by an insurer in return for the issuance of surplus note shall be in the form of cash.

(3) An application for approval of a surplus note, filed in accordance with the provisions of this chapter by an insurer other than a captive insurer, shall be deemed approved unless the insurer is otherwise notified within fifteen (15) business days after the date of filing such application. Applications for approval of a surplus note filed by a captive insurer must be approved by the commissioner in writing before issuance.

(4) An application for approval of the payment of interest on a surplus note, according to the terms thereof, shall be deemed approved unless the insurer is otherwise notified within fifteen (15) business days after the date of filing such application. Such application may include a request for the pre-approval of periodic payments of interest extending over a period of time not exceeding twelve (12) months.

(5) An application for approval of the payment of principal of such a loan, or any portion thereof, shall not be deemed approved except upon written notice from the Commissioner.

(6) For the purposes of this rule, no application shall be deemed filed until the date all material required and sufficient to constitute a full application according to this chapter has been received by the Department.

Ala. Admin. Code r. 482-1-094-.05

New: December 18, 1992; effective January 1, 1993. Filed for codification in the Alabama Administrative Code by the Department of Insurance on November 14, 2005, pursuant to the Code of Ala. 1975, § 27-7-43.

Amended by Alabama Administrative Monthly Volume XXXIX, Issue No. 09, June 30, 2021, eff. 7/1/2021.

Author: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §§ 27-27-40, 27-2-7, 27-2-17, 27-27-1, 27-27-2.