Ala. Admin. Code r. 482-1-096-.03

Current through Register Vol. 43, No. 1, October 31, 2024

Section 482-1-096-.03 - Definitions

As used in this chapter:

(a) Alien insurer. An insurer formed under the laws of any other country other than the United States of America, its states, district, territory and commonwealths which does not hold a certificate of authority to engage in insurance transactions in this state.

(b) Recognized financial institution. Any financial institution qualified under Section 27-5-12(b)(2) e.4., Code of Ala. 1975.

(c) Financially sound. An unauthorized alien insurer is financially sound when it is possessed of admissible assets at least equal to all due or accrued liabilities (including unearned premium and claim reserves) and other required reserves, together with its total issued and outstanding capital stock, if a stock insurer, or the minimum surplus, if a Lloyd's plan or mutual insurer, amounting to at least the requirements of either Section 27-10-26(b)(1) or Section 27-10-26(b)(2), Code of Ala. 1975, as appropriate.

(d) Admissible assets. Any asset of an insurer permitted by the Commissioner of Insurance to be taken into account in any determination of the financial condition of such insurer.

(e) Authorized insurer. An insurer duly authorized, by a subsisting certificate of authority issued by the Commissioner, to transact insurance in this state.

(f) Affiliates. Such term shall include an "affiliate" of, or person "affiliated" with, a specific person, and shall mean a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified. "Control" shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person.

Author: Commissioner of Insurance

Ala. Admin. Code r. 482-1-096-.03

New: September 23, 1996; effective October 3, 1996. 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.

Statutory Authority:Code of Ala. 1975, §§ 27-2-17; 27-10-1, etseq.