Code of Alabama
Article 2 - Surplus Line Insurance.
Section 27-10-20 - Procuring of Surplus Lines From Unauthorized Insurers.

If certain insurance coverages cannot be procured on terms acceptable to the insureds from authorized insurers, such coverages, designated "surplus lines," may be procured from unauthorized insurers subject to the terms and conditions of either subdivisions (1) or (2) of this section:
(1)a. The insurance must be procured through a licensed surplus line broker;
b. The full amount of insurance required must not be procurable, after diligent effort has been made to do so, from among the insurers authorized to transact and actually transacting that kind and class of insurance in this state or has been procured to the full extent such insurers are willing to insure;
c. The insurance must not be procured for the purpose of securing advantages as to a lower premium rate than would be accepted by an authorized insurer; and
d. This section, and this surplus line law, does not apply as to life insurance or disability insurance.
(2) The contracts of insurance are issued to an industrial insured, defined as an insured:
a. Which procures the insurance of any risk by use of services of a full-time employee acting as an insurance manager or buyer or the services of a regularly and continuously retained, qualified insurance consultant;
b. Whose aggregate annual premiums for insurance on all risks other than workmen's compensation and group insurance total at least $25,000.00; and
c. Which has at least 25 employees.

Structure Code of Alabama

Code of Alabama

Title 27 - Insurance.

Chapter 10 - Unauthorized Insurers and Surplus Lines.

Article 2 - Surplus Line Insurance.

Section 27-10-20 - Procuring of Surplus Lines From Unauthorized Insurers.

Section 27-10-21 - Report of Surplus Line Broker.

Section 27-10-22 - Endorsement of Surplus Line Contract.

Section 27-10-23 - Validity and Enforceability of Surplus Line Contracts.

Section 27-10-24 - Licensing of Surplus Line Brokers.

Section 27-10-25 - Acceptance and Placement of Surplus Line Business From Agents or Brokers.

Section 27-10-26 - Eligibility of Insurers for Placement of Surplus Line Insurance.

Section 27-10-27 - Evidence of Surplus Line Insurance; Changes; Issuance of False Certificate and Failure to Notify Insured of Material Change.

Section 27-10-28 - Liability of Insurer as to Losses and Unearned Premiums.

Section 27-10-29 - Records of Surplus Line Brokers.

Section 27-10-30 - Annual Statement of Surplus Line Broker.

Section 27-10-31 - Annual Tax of Surplus Line Brokers.

Section 27-10-32 - Revocation or Suspension of Surplus Line Broker's License.

Section 27-10-33 - Service of Process in Action or Proceeding Against Insurer.

Section 27-10-34 - Exemptions From Surplus Line Insurance Law.

Section 27-10-35 - Report Of, and Tax On, Independently Procured Coverages; Exceptions.

Section 27-10-36 - Production of Policies, etc., for Inspection by Commissioner.

Section 27-10-37 - Penalty for Violation of Article.

Section 27-10-38 - Short Title.