(a) The commissioner may adopt rules implementing the provisions of this chapter.
Terms Used In Alabama Code 27-5B-19
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.
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
(b) In addition to the authority of the commissioner pursuant to subsection (a), the commissioner may adopt rules applicable to reinsurance arrangements as provided in this subsection.
(1) A rule adopted pursuant to this subsection may apply only to reinsurance relating to any of the following:
a. Life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits.b. Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period.c. Variable annuities with guaranteed death or living benefits.d. Long-term care insurance policies.e. Any other life and health insurance and annuity products that the NAIC adopts model regulatory requirements with respect to credit for reinsurance.(2) A rule adopted pursuant to paragraph a. or b. of subdivision (1) may apply to any reinsurance agreement containing (i) policies issued on or after January 1, 2015, or (ii) policies issued prior to January 1, 2015, if risk pertaining to the pre-2015 policies is ceded in connection with the reinsurance agreement, in whole or in part, on or after January 1, 2015, or reinsurance agreements meeting both items (i) and (ii).(3) A rule adopted pursuant to this subsection may require the ceding insurer, in calculating the amounts or forms of security required to be held under rules adopted under this authority, to use the valuation manual adopted by the NAIC as described in subdivision (1) of subsection (b) of Section 27-36A-15, including all amendments adopted by the NAIC and in effect on the date as of which the calculation is made, to the extent applicable.(4) A rule adopted pursuant to this subsection shall not apply to cessions to an assuming insurer that meets any of the following:
a. The conditions set forth in Section 27-5B-8.1.b. Is certified in this state.c. Maintains at least two hundred fifty million dollars ($250,000,000) in capital and surplus when determined in accordance with the Accounting Practices and Procedures Manual of the NAIC, including all amendments thereto adopted by the NAIC, excluding the impact of any permitted or prescribed practices, and is either of the following:
1. Licensed in at least 26 states.2. Licensed in at least 10 states, and licensed or accredited in a total of at least 35 states.(5) The authority to adopt rules pursuant to this subsection does not limit the commissioner’s general authority to adopt rules pursuant to subsection (a).
