§ 27-31B-1 Short title
§ 27-31B-2 Definitions
§ 27-31B-3 Licensing
§ 27-31B-4 Fees
§ 27-31B-5 Names of companies
§ 27-31B-6 Minimum capital and surplus
§ 27-31B-7 Dividends
§ 27-31B-8 Formation of captive insurance companies in this state
§ 27-31B-9 Reports and statements
§ 27-31B-10 Examinations and investigations
§ 27-31B-11 Grounds and procedures for suspension or revocation of license
§ 27-31B-12 Legal investments
§ 27-31B-13 Reinsurance
§ 27-31B-14 Rating organizations; memberships
§ 27-31B-15 Exemption from compulsory associations
§ 27-31B-16 Tax on premiums collected
§ 27-31B-17 Rules
§ 27-31B-18 Laws applicable
§ 27-31B-19 Delinquency
§ 27-31B-20 Rules for controlled unaffiliated business
§ 27-31B-21 Conversion to or merger with reciprocal insurer
§ 27-31B-22 Protected cell captive insurance companies
§ 27-31B-23 Qualification of sponsors
§ 27-31B-24 Participants in protected cell captive insurance companies
§ 27-31B-25 Incorporation of protected cells

Terms Used In Alabama Code > Title 27 > Chapter 31B

  • AFFILIATED COMPANY: Any company in the same corporate system as a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management. See Alabama Code 27-31B-2
  • ALIEN CAPTIVE INSURANCE COMPANY: Any insurance company formed to write insurance business for its parents and affiliates and licensed pursuant to the laws of an alien jurisdiction which imposes statutory or regulatory standards in a form acceptable to the commissioner on companies transacting the business of insurance in that jurisdiction. See Alabama Code 27-31B-2
  • 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.
  • Arrest: Taking physical custody of a person by lawful authority.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • association: Any legal association of individuals, corporations, limited liability companies, partnerships, associations, or other entities whereby either of the following exists:

    a. See Alabama Code 27-31B-2

  • ASSOCIATION CAPTIVE INSURANCE COMPANY: Any company that insures risks of the member organizations of the association, and that also may insure the risks of affiliated companies of the member organizations and the risks of the association itself and their affiliated companies. See Alabama Code 27-31B-2
  • Attorney-in-fact: A person who, acting as an agent, is given written authorization by another person to transact business for him (her) out of court.
  • BRANCH BUSINESS: Any insurance business transacted by a branch captive insurance company in this state. See Alabama Code 27-31B-2
  • BRANCH CAPTIVE INSURANCE COMPANY: Any alien captive insurance company licensed by the commissioner to transact the business of insurance in this state through a business unit with a principal place of business in this state. See Alabama Code 27-31B-2
  • BRANCH OPERATIONS: Any business operations of a branch captive insurance company in this state. See Alabama Code 27-31B-2
  • CAPTIVE INSURANCE COMPANY: Any pure captive insurance company, association captive insurance company, risk retention group, protected cell captive insurance company, incorporated cell captive insurance company, or industrial insured captive insurance company formed or licensed under this chapter. See Alabama Code 27-31B-2
  • CAPTIVE RISK RETENTION GROUP: A captive insurance company organized and licensed as a captive insurer under the laws of this state and operating pursuant to the Liability Risk Retention Act of 1986, as amended, 15 U. See Alabama Code 27-31B-2
  • commissioner: The Alabama Commissioner of Insurance or the commissioner's designee. See Alabama Code 27-31B-2
  • CONTROLLED UNAFFILIATED BUSINESS: Any company that meets all of the following criteria:

    a. See Alabama Code 27-31B-2

  • Conviction: A judgement of guilt against a criminal defendant.
  • 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.
  • cruel: as used in this article shall mean: Every act, omission, or neglect, including abandonment, where unnecessary or unjustifiable pain or suffering, including abandonment, is caused or where unnecessary pain or suffering is allowed to continue. See Alabama Code 13A-11-240
  • dog or cat: as used in this article shall mean any domesticated member of the dog or cat family. See Alabama Code 13A-11-240
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
  • Felony: A crime carrying a penalty of more than a year in prison.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Fraud: Intentional deception resulting in injury to another.
  • GENERAL ACCOUNT: All assets and liabilities of a protected cell captive insurance company not attributable to a protected cell. See Alabama Code 27-31B-2
  • INCORPORATED CELL: A protected cell of an incorporated cell captive insurance company that is organized as a corporation or other legal entity separate from the incorporated cell captive insurance company. See Alabama Code 27-31B-2
  • INCORPORATED CELL CAPTIVE INSURANCE COMPANY: A protected cell captive insurance company that is established as a corporation or other legal entity separate from its incorporated cells that are also organized as separate legal entities. See Alabama Code 27-31B-2
  • INDUSTRIAL INSURED: As defined in subdivision (2) of Section 27-10-20. See Alabama Code 27-31B-2
  • INDUSTRIAL INSURED CAPTIVE INSURANCE COMPANY: Any company that insures risks of the industrial insureds that comprise the industrial insured group, and that may insure the risks of the affiliated companies of the industrial insureds and the risks of the controlled unaffiliated business of an industrial insured or its affiliated companies. See Alabama Code 27-31B-2
  • INDUSTRIAL INSURED GROUP: Any group that meets either of the following criteria:

    a. See Alabama Code 27-31B-2

  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • MEMBER ORGANIZATION: Any individual, corporation, limited liability company, partnership, association, or other entity that belongs to an association. See Alabama Code 27-31B-2
  • MUNICIPAL CORPORATION: A corporation or other legal entity organized without stockholders. See Alabama Code 27-31B-2
  • MUTUAL INSURER: An incorporated captive insurer without capital stock and the governing body of which is elected from policyholders at the mutual members' annual meeting. See Alabama Code 27-31B-2
  • oath: includes affirmation. See Alabama Code 1-1-1
  • Oath: A promise to tell the truth.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • ORGANIZATIONAL DOCUMENTS: The documents that must be submitted pursuant to state law in order to legally form a business in this state, or to obtain a certificate of authority to transact business in the state. See Alabama Code 27-31B-2
  • Oversight: Committee review of the activities of a Federal agency or program.
  • parent: An individual, corporation, limited liability company, partnership, association, or other entity that directly or indirectly owns, controls, or holds with power to vote more than 50 percent of the outstanding of any of the following:

    (1) Voting securities of a pure captive insurance company organized as a stock corporation. See Alabama Code 27-31B-2

  • participant: An entity as defined in Section 27-31B-24, and any affiliates thereof, that are insured by a protected cell captive insurance company, where the losses of the participant are limited through a participant contract. See Alabama Code 27-31B-2
  • PARTICIPANT CONTRACT: A contract by which a protected cell captive insurance company insures the risks of a participant and limits the losses of each participant to its pro rata share of the assets of one or more protected cells identified in the participant contract. See Alabama Code 27-31B-2
  • 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.
  • Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
  • PROTECTED CELL: A separate account established by a protected cell captive insurance company formed or licensed under this chapter, in which an identified pool of assets and liabilities is segregated and insulated by means of this chapter from the remainder of the protected cell captive insurance company's assets and liabilities in accordance with the terms of one or more participant contracts to fund the liability of the protected cell captive insurance company, with respect to the participants as set forth in the participant contracts. See Alabama Code 27-31B-2
  • PROTECTED CELL ASSETS: All assets, contract rights, and general intangibles identified with and attributable to a specific protected cell of a protected cell captive insurance company. See Alabama Code 27-31B-2
  • PROTECTED CELL CAPTIVE INSURANCE COMPANY: Any captive insurance company meeting all of the following:

    a. See Alabama Code 27-31B-2

  • PROTECTED CELL LIABILITIES: All liabilities and other obligations identified with and attributed to a specific protected cell of a protected cell captive insurance company. See Alabama Code 27-31B-2
  • PURE CAPTIVE INSURANCE COMPANY: Any company that insures risks of its parent and affiliated companies or controlled unaffiliated business or businesses. See Alabama Code 27-31B-2
  • Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
  • Service of process: The service of writs or summonses to the appropriate party.
  • sponsor: Any person or entity that is approved by the commissioner to organize and operate a protected cell captive insurance company. See Alabama Code 27-31B-2
  • SURPLUS NOTE: An unsecured subordinated debt obligation deemed to be a surplus certificate under terms acceptable to the commissioner. See Alabama Code 27-31B-2
  • Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC