Ala. Admin. Code r. 482-1-138-.08

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

Section 482-1-138-.08 - Deposit Requirement

Whenever the commissioner deems that the financial condition of the company warrants additional security, the commissioner may require a company to deposit with the Treasurer of this state cash or securities approved by the commissioner or, alternatively, to furnish the commissioner a clean, irrevocable letter of credit issued by a bank chartered by the State of Alabama or a member bank of the Federal Reserve System and approved by the commissioner. The company may receive interest or dividends from said deposit or exchange the deposits for others of equal value with the approval of the commissioner. If the company discontinues business, the commissioner shall return such deposit only after being satisfied that all obligations of the company have been discharged.

Author: Commissioner of Insurance

New Rule: August 1, 2006; effective August 11, 2006. Filed with LRS August 1, 2006. Rule is not subject to the Alabama Administrative Procedure Act.

Statutory Authority:Code of Ala. 1975, §§ 27-2-17; 27-7-43, 27-31B-17.