This chapter shall apply to all kinds of direct insurance, excluding all of the following:

(1) Life, annuity, health, or disability insurance.

Terms Used In Alabama Code 27-42-3

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • following: means next after. See Alabama Code 1-1-1
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • property: includes both real and personal property. See Alabama Code 1-1-1
(2) Mortgage guaranty, financial guaranty, or other forms of insurance offering protection against investment risks.
(3) Fidelity or surety bonds, or any other bonding obligations.
(4) Credit insurance, vendors’ single interest insurance, or collateral protection insurance or any similar insurance protecting the interests of a creditor arising out of a creditor-debtor transaction.
(5) Insurance of warranties or service contracts, including insurance that provides for the repair, replacement, or service of goods or property, or indemnification for repair, replacement, or service, for the operational or structural failure of the goods or property due to a defect in materials, workmanship, or normal wear and tear, or provides reimbursement for the liability incurred by the issuer of agreements or service contracts that provide such benefits.
(6) Title insurance.
(7) Ocean marine insurance.
(8) Any insurance provided by or guaranteed by the government.
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