Alabama Administrative Code Chapter 482-1-107 — Reinsurance Intermediaries

482 Alabama Department of Insurance

Ala. Admin. Code r. 482-1-107-.01 Authority

This chapter is promulgated by the Commissioner of Insurance pursuant to Section 27-2-17, Code of Ala. 1975, and Section 27-5A-12, Code of Ala. 1975 (Section 12 of Act No. 93-673, S.12, 1993 Regular Session).

History

• Author: Commissioner of Insurance
• Authority: Code of Ala. 1975, §§27-2-17, 27-5A-12.
• New: August 1, 1994; effective August 11, 1994. 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.

Ala. Admin. Code r. 482-1-107-.02 Purpose

This chapter provides the procedures to be followed in the implementation and administration of the Alabama Reinsurance Intermediary Act, found at Sections 27-5A-1 through 27-5A-13, Code of Ala. 1975 (Act No. 93-673, S.12, 1993 Regular Session), regarding who must file, when to file, what must be filed annually, and the applicable forms and fees.

History

• Author: Commissioner of Insurance
• Authority: Code of Ala. 1975, §§27-2-17, 27-5A-12.
• New: August 1, 1994; effective August 11, 1994. 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.

Ala. Admin. Code r. 482-1-107-.03 Who Must File

(1) The following must be licensed in this state as a reinsurance intermediary:

(a) Any person, firm, association or corporation acting as a reinsurance intermediary broker (RB) in this state, if the RB maintains an office (either directly or as a member or employee of a firm or association, or an officer, director or employee of a corporation):

1. In this state, unless the RB is licensed and appointed as an insurance producer of the reinsurer in this state or is a licensed insurance broker in this state.

2. In another state, unless the RB is licensed and appointed as an insurance producer of the reinsurer in this state, or is a licensed insurance broker in this state, or is a licensed insurance producer, broker or reinsurance intermediary in another state having a law substantially similar to the Alabama Reinsurance Intermediary Act.

(b) Any person, firm, association or corporation acting as a reinsurance intermediary manager (RM):

1. For a reinsurer domiciled in this state, unless the RM is licensed and appointed as an insurance producer of the reinsurer in this state.

2. In this state, if the RM maintains an office (either directly or as a member or employee of a firm or association, or an officer, director or employee of a corporation) in this state, unless the RM is licensed and appointed as an insurance producer of the reinsurer in this state.

3. In another state for a nondomestic reinsurer (which is a duly licensed insurer in this state), unless the RM is licensed and appointed as an insurance producer of the reinsurer in this state, or is a licensed insurance producer or reinsurance intermediary in another state having a law substantially similar to the Alabama Reinsurance Intermediary Act.

(2) Licensed attorneys at law of this state, when acting in their professional capacity, shall be exempt from this chapter.

History

• Author: Commissioner of Insurance
• Authority: Code of Ala. 1975, §§27-2-17, 27-5A-12.
• New: August 1, 1994; effective August 11, 1994. 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.

Ala. Admin. Code r. 482-1-107-.04 Filings Required For Reinsurance Intermediary License

(1) In order to obtain a license as a reinsurance intermediary, one must complete and file an application Form AL-RI-1. This form must list all information requested, including, but not limited to, the name, address and telephone number of each individual who will be acting on behalf of the reinsurance intermediary under the license. Attached to Form AL-RI-1 shall be the following exhibits, if applicable:

(a) If an application for license as a RM, a copy of a fidelity bond from an insurer acceptable to the Commissioner for the protection of each reinsurer represented in the minimum amount of one hundred thousand dollars ($100,000) with no deductible and which must have a discovery period of at least one (1) year.

(b) A copy of the RM's errors and omissions liability policy from a company acceptable to the Commissioner, with coverage limits in the minimum amount of one million dollars ($1,000,000).

(c) A nonresident applying for a license as a reinsurance intermediary must appoint the Alabama Commissioner of Insurance as the licensee's agent for service of process, which is included on the Form AL-RI-1.

(2) A reinsurance intermediary license may be renewed by filing Form AL-RI-1 on or before January 1 of each year.

History

• Author: Commissioner of Insurance
• Authority: Code of Ala. 1975, §§27-2-17, 27-5A-12.
• New: August 1, 1994; effective August 11, 1994. 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.

Ala. Admin. Code r. 482-1-107-.05 Forms And Fees

(1) Forms. The form referred to in this chapter (AL-RI-1) is attached hereto as Exhibit 1, may be freely copied or may be obtained from the Department of Insurance, Producer Licensing Division.

(2) Fees. An application filed pursuant to this chapter shall be accompanied by the fees set forth in Section 27-4-2(a)(6), Code of Alabama 1975, as follows:

(a) These fees will be charged for the initial filing of the Application Form (AL-RI-1): A check or money order in the amount of $170.00, representing an application fee of $20.00, a license fee of $50.00, and an examiner's fee of $100.00. An application will be returned without processing if not accompanied by the fees as indicated above.

(b) These fees will be charged for the renewal filing of the Application Form (AL-RI-1): A check or money order in the amount of $100.00, representing the annual continuation of license fee of $50.00 and an examiner's fee of $50.00. The certification will be returned without processing if not accompanied by the fees as indicated above.

History

• Author: Commissioner of Insurance
• Authority: Code of Ala. 1975, §§27-2-17, 27-5A-12.
• New: August 1, 1994; effective August 11, 1994. 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.

Ala. Admin. Code r. 482-1-107-.06 Retaliatory Provisions

Pursuant to Section 27-3-29, Code of Ala. 1975, if an applicant's state of domicile imposes any taxes, licenses or other fees, in the aggregate, or deposit requirements or other material obligations, prohibitions or restrictions in excess of the licenses or other fees, in the aggregate, or other material obligations set forth in this chapter, the same taxes, licenses or other fees, deposit requirements and other material obligations, prohibitions and restrictions shall be imposed on the applicant.

History

• Author: Commissioner of Insurance
• Authority: Code of Ala. 1975, §§27-2-17, 27-5A-12.
• New: August 1, 1994; effective August 11, 1994. 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.

Ala. Admin. Code r. 482-1-107-.07 Effective Date

This chapter shall become effective ten (10) days from the date of certification that the properly executed chapter was delivered to the Secretary of State.

History

• Author: Commissioner of Insurance
• Authority: Code of Ala. 1975, §§27-2-17, 27-5A-12.
• New: August 1, 1994; effective August 11, 1994. 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.

Ala. Admin. Code r. 482-1-107-A Appendix Form AL-RI-1