Current as of January 01, 2019 | Updated by FindLaw Staff
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(a) Each mutual aid association shall, prior to issuance of its certificate of authority, deposit and thereafter maintain on deposit with the Treasurer of the State of Alabama securities of the kind authorized under subsection (d) of this section, in the amount of not less than $5,000.00. If in any calendar year the gross premium receipts of the association from business done within this state exceed $50,000.00, the association shall, not later than the March 30 next following such calendar year, increase the amount of its deposit so made and maintained in accordance with the following schedule:
|
Gross premium receipts |
Amount of deposit |
|||||
|
during calendar year |
required |
|||||
|
More than |
$ 50,000 |
but less than |
$ 150,000 |
$ 10,000 |
||
|
Equal to |
150,000 |
but less than |
250,000 |
15,000 |
||
|
Equal to |
250,000 |
but less than |
350,000 |
20,000 |
||
|
Equal to |
350,000 |
but less than |
500,000 |
25,000 |
||
|
Equal to |
500,000 |
but less than |
750,000 |
50,000 |
||
|
Equal to |
750,000 |
but less than |
1,000,000 |
75,000 |
||
|
Equal to |
1,000,000 |
or more |
100,000 |
(b) Any such deposit is so made and shall be so held by the State Treasurer in trust for the benefit and protection of the contract or policyholders in this state of the depositing mutual aid association.
(c) The term “gross premium receipts” as used in this section shall include all sums received by the association as fees, dues, premiums, contributions, or by whatever other name called from its contract or policyholders as consideration for, or in connection with, such contracts and policies.
(d) All such deposits shall consist of assets, approved by the commissioner, such as are eligible for deposit generally under subsection (a) of Section 27-6-3.
Cite this article: FindLaw.com - Alabama Code Title 27. Insurance § 27-30-18 - last updated January 01, 2019 | https://codes.findlaw.com/al/title-27-insurance/al-code-sect-27-30-18.html
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