(a) An insurer may make investments not otherwise expressly permitted by this chapter which may be counted as admitted assets, except as expressly prohibited under Section 27-41-36, provided that:
(1) The aggregate of all such investments shall not exceed 10 percent of the insurer's admitted assets;
(2) The insurer's capital and surplus shall not be less than twice the total capital and surplus required of the insurer to transact insurance under Sections 27-3-7 and 27-3-8 of the Alabama Insurance Code; and
(3) Such investments are sound investments.
(b) No investment shall be an eligible investment under this section if the investment is in an asset not allowed under the provisions of Section 27-37-2 of the Alabama Insurance Code or is otherwise expressly prohibited or is eligible under any other provision of this chapter; except, that an insurer may invest in common stocks up to the limits imposed by this section in excess of the limits imposed by Section 27-41-17.
(c) The insurer shall keep a separate record of all investments made under this section.
(d) If an investment made under this section subsequently qualifies as an eligible investment under any other provision of this chapter, the investment shall thereafter not be eligible under this section.
Structure Code of Alabama
Chapter 41 - Investments of Life, Disability and Burial Insurance Companies.
Section 27-41-1 - Applicability of Chapter.
Section 27-41-2 - Definitions.
Section 27-41-4 - General Requirements as to Eligibility of Investments.
Section 27-41-5 - Authorization of Investments by Board of Directors, Etc.
Section 27-41-6 - Limitations Upon Investments Generally.
Section 27-41-7 - Particular Investments - Bonds, Notes, etc., of United States.
Section 27-41-8 - Particular Investments - Loans Guaranteed by United States.
Section 27-41-11 - Particular Investments - Bonds, etc., of Local Public Housing Authorities.
Section 27-41-18 - Particular Investments - American Insurance Stocks.
Section 27-41-21 - Particular Investments - Obligations of Religious Institutions or Societies.
Section 27-41-25 - Particular Investments - Policy Loans.
Section 27-41-27 - Particular Investments - Securities, etc., of Foreign Countries.
Section 27-41-31 - Particular Investments - Data Processing and Accounting Systems.
Section 27-41-33 - Particular Investments - Loans on Personal Property; Chattel Mortgages.
Section 27-41-34 - Particular Investments - Real Estate.
Section 27-41-34.1 - Particular Investments - Oil and Gas Producing Properties and Facilities.
Section 27-41-35 - Miscellaneous Investments.
Section 27-41-37 - Investments of Mutual Aid Associations - Generally.
Section 27-41-39 - Investments of Foreign and Alien Insurers; Cash Equivalents.