If the authority of a surety insurer to transact business in this state is revoked or otherwise terminated upon the ground that the insurer is insolvent or cannot be safely accepted as surety upon bonds and undertakings mentioned in Section 27-24-2, it shall be the duty of any officer in this state authorized to approve official bonds, upon receiving the circular letter from the commissioner as provided for in subsection (c) of Section 27-3-22 or upon otherwise being informed of such revocation or termination, to require the principal in any such bond upon which such insurer has become surety to give an additional bond as provided by law.
Structure Code of Alabama
Chapter 24 - Surety Insurance Contracts.
Section 27-24-1 - Applicability of Chapter.
Section 27-24-2 - Sole Surety - Corporations.
Section 27-24-3 - Sole Surety - Mutual or Reciprocal Surety Insurers.
Section 27-24-4 - Sole Surety - Cosureties on Bond of State Treasurer.
Section 27-24-5 - Additional Bond Upon Insolvency, etc., of Surety.
Section 27-24-6 - Venue of Actions on Bonds or Undertakings.
Section 27-24-7 - Estoppel of Insurer to Deny Its Power, Etc.