Ala. Admin. Code r. 482-1-094-.04

Current through Register Vol. 43, No. 1, October 31, 2024

Section 482-1-094-.04 - Definitions

The following words and terms, when used in this chapter, shall have the following meaning, unless the context clearly indicates otherwise.

(a) Insurer. Any domestic stock or mutual insurer, as defined in Section 27-27-1, including mutual aid associations and fraternal benefit societies, pursuant to Section 27-27-2.

(b) Minimum surplus or "floor." The amount of surplus specified in the surplus note which may not be used for payments or repayments of the surplus note and which amount must exceed the sum of (i) 10% of the face amount of the surplus note plus, (ii) the greater of the statutory minimum capital and surplus required by statute, rule, or regulation applicable to the issuing insurer, or the total stated capital and surplus of the insurer immediately before the issuance of the surplus note. The Commissioner may approve a different amount if the Commissioner is satisfied such amount is appropriate considering the financial condition of the insurer.

(c) Surplus notes. Surplus notes, also known as "surplus debentures," "contribution certificates," "surplus capital notes," and "premium income notes, bonds, or debentures," however denominated, which are financing vehicles that increase the surplus of an insurer.

Author: Commissioner of Insurance

Ala. Admin. Code r. 482-1-094-.04

New: December 18, 1992; effective January 1, 1993. Filed for codification in the Alabama Administrative Code by the Department of Insurance on November 14, 2005, pursuant to the Code of Ala. 1975, § 27-7-43.

Statutory Authority:Code of Ala. 1975, §§ 27-27-40, 27-2-7, 27-2-17, 27-27-1, 27-27-2.