For the purposes of this title, the following terms shall have the meanings respectively ascribed to them by this section.

(1) INSURANCE. A contract whereby one undertakes to indemnify another or pay or provide a specified amount or benefit upon determinable contingencies.

Terms Used In Alabama Code 27-1-2

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • following: means next after. See Alabama Code 1-1-1
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
  • state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
  • United States: includes the territories thereof and the District of Columbia. See Alabama Code 1-1-1
(2) INSURER. Every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance.
(3) PERSON. An individual, insurer, company, association, organization, Lloyd’s insurer, society, reciprocal insurer or interinsurance exchange, partnership, syndicate, business trust, corporation, and every legal entity.
(4) COMMISSIONER. The Commissioner of Insurance of this state.
(5) DEPARTMENT. The Department of Insurance of this state.
(6) DOMESTIC INSURER. One formed under the laws of this state.
(7) FOREIGN INSURER. One formed under the laws of any jurisdiction other than this state. Except where distinguished by context, “foreign” insurers includes also “alien” insurers.
(8) ALIEN INSURER. One formed under the laws of any country other than the United States of America, its states, district, territories, and commonwealths.
(9) STATE. Such term, when used in context signifying a jurisdiction other than the State of Alabama, means any state, district, territory, commonwealth, or possession of the United States of America.
(10) AUTHORIZED INSURER; UNAUTHORIZED INSURER. An “authorized” insurer is one duly authorized, by a subsisting certificate of authority issued by the commissioner, to transact insurance in this state. An “unauthorized” insurer is one not so authorized.
(11) TRANSACT. Such term, with respect to insurance, includes any of the following:

a. Solicitation and inducement;
b. Preliminary negotiations;
c. Effectuation of a contract of insurance; or
d. Transaction of matters subsequent to effectuation of a contract of insurance and arising out of it.
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