Ala. Admin. Code r. 770-X-10-.04-.05

Current through Register Vol. 43, No. 02, November 27, 2024

Section 770-X-10-.04-.05 - Qualifications As A Self-Insurer Of Other Securities Or Agreements

(1) Carriers Qualified with the U.S.B.O.T. - A carrier approved by the U.S.B.O.T. as a self-insurer will be approved as a self-insurer with this Commission upon providing proof of his approval as a self-insurer by the U.S.B.O.T., and upon providing a written statement under oath that this Commission will be notified of any cancellation, revocation, or other termination of the U.S.B.O.T. approval as a self-insurer.

(2) General Qualifications - A carrier will be approved as a self-insurer if such carrier furnishes a true and correct statement of his financial condition which shows net assets in the amount of five times the minimum amount of the insurance the qualifications will replace, and furnishes a written statement under oath that these assets are available to pay a final judgment rendered against such carrier and that the carrier will notify the Commission if the value of its net assets diminishes by 10 percent or more.

(3) Securities and Agreements - Securities and agreements will be approved in lieu of insurance if it is shown that such securities and agreements provide protection in the amount of five times the minimum amount of such insurance, and if the carrier furnishes a written statement under oath that these securities or agreements are available to pay a final judgment rendered against such carrier, that the carrier will not transfer or encumber these securities or agreements until 30 days actual notice has been given to the Commission, and that the carrier will notify the Commission if the value of these securities or agreements diminishes by 10 percent or more.

Ala. Admin. Code r. 770-X-10-.04-.05

Effective January 1978. Filed with LRS February 5, 2013. Filed for Codification in the Alabama Administrative Code by the Alabama Public Service Commission on February 5, 2013, pursuant to Code of Ala. 1975, § 41-22-7.

Author: Alabama Public Service Commission

Statutory Authority:Code of Ala. 1975, §§ 37-3-5, 37-3-7, 37-3-18, 37-3-22.