(a) Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of Section 27-5B-4, 27-5B-5, 27-5B-6, 27-5B-7, 27-5B-8, 27-5B-8.1, or 27-5B-9.
(b) The commissioner may adopt by rule specific additional requirements relating to any of the following:
(1) The valuation of assets or reserve credits.
(2) The amount and forms of security supporting reinsurance arrangements described in subsection (b) of Section 27-5B-19.
(3) The circumstances pursuant to which credit shall be reduced or eliminated.
(c) Credit shall be allowed under Section 27-5B-4, 27-5B-5, or 27-B5-6 only as respects cessions of those kinds or classes of business which the assuming insurer is licensed or otherwise permitted to write or assume in its state of domicile or, in the case of a U.S. branch of an alien assuming insurer, in the state through which it is entered and licensed to transact insurance or reinsurance. Credit shall be allowed under Section 27-5B-6 or 27-5B-7 only if the applicable requirements of Section 27-5B-10 have been satisfied.
Structure Code of Alabama
Section 27-5B-2 - Reinsurance Permitted.
Section 27-5B-3 - Credit Allowed a Domestic Ceding Insurer.
Section 27-5B-4 - Licensed Reinsurer.
Section 27-5B-5 - Accredited Reinsurer.
Section 27-5B-6 - Reinsurer Domiciled in State With Substantially Similar Law.
Section 27-5B-7 - Reinsurer Maintaining a Trust Fund.
Section 27-5B-8 - Certified Reinsurer.
Section 27-5B-8.1 - Reinsurer Domiciled in a Reciprocal Jurisdiction.
Section 27-5B-9 - Credit for Reinsurance Required by Law.
Section 27-5B-12 - Accredited or Certified Reinsurer Ceasing to Meet Requirements.
Section 27-5B-13 - Concentration Risk.
Section 27-5B-15 - Qualified u.s. Financial Institutions.
Section 27-5B-16 - Insolvency Clause.
Section 27-5B-17 - Guaranty Association Election.
Section 27-5B-18 - Notice by Domiciliary Liquidator.