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27-27-39
Section 27-27-39 Dividends - Liability for illegal dividends by domestic insurers. (a) Any
director of a domestic stock or mutual insurer who knowingly votes for, or concurs in, declaration
or payment of a dividend to stockholders or members except as authorized in Sections 27-27-37
or 27-27-38 shall, upon conviction thereof, be guilty of a misdemeanor and shall be jointly
and severally liable, together with other such directors likewise voting for or concurring,
for any loss thereby sustained by the insurer. (b) Any stockholder receiving such an illegal
dividend shall be liable in the amount thereof to the insurer. (c) The commissioner may revoke
or suspend the certificate of authority of an insurer which has declared or paid such an illegal
dividend. (Acts 1971, No. 407, p. 707, §535.)...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/27-27-39.htm - 1K - Match Info - Similar pages
27-27-23
Section 27-27-23 Directors of domestic insurers - Number; election; qualifications. (a) The
affairs of every domestic insurer shall be managed by not less than three directors, and at
least one-third of the directors shall be bona fide residents of this state. (b) Directors
must be elected by the members or stockholders of a domestic insurer at the annual meeting
of stockholders or members. Directors may be elected for terms of not more than five years
each and until their successors are elected and have qualified, and if to be elected for terms
of more than one year, the insurer's bylaws shall provide for a staggered-term system under
which the terms of a proportionate part of the members of the board of directors will expire
on the date of each annual meeting of stockholders or members. (c) If so provided in the insurer's
bylaws, a director of a stock insurer shall be a stockholder thereof and a director of a mutual
insurer shall be a policyholder thereof. (Acts 1971, No. 407, p....
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/27-27-23.htm - 1K - Match Info - Similar pages
27-32-27
Section 27-32-27 Voidable transfers and liens. (a) Any transfer of, or lien upon, the property
of an insurer which is made or created within four months prior to the granting of an order
to show cause under this chapter with the intent of giving to any creditor a preference or
of enabling him to obtain a greater percentage of his debt than any other creditor of the
same class and which is accepted by such creditor, having reasonable cause to believe that
such preference will occur, shall be voidable. (b) Every director, officer, employee, stockholder,
member, subscriber, and any other person acting on behalf of such insurer who shall be concerned
in any such act or deed and every person receiving thereby any property of such insurer of
the benefit thereof shall be personally liable therefor and shall be bound to account to the
commissioner. (c) The commissioner, as receiver in any proceeding under this chapter, may
avoid any transfer of, or lien upon, the property of an insurer which...
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10A-1-1.03
Section 10A-1-1.03 Definitions. As used in this title, unless the context otherwise requires,
the following terms mean: (1) AFFILIATE. A person who controls, is controlled by, or is under
common control with another person. An affiliate of an individual includes the spouse, or
a parent or sibling thereof, of the individual, or a child, grandchild, sibling, parent, or
spouse of any thereof, of the individual, or an individual having the same home as the individual,
or a trust or estate of which an individual specified in this sentence is a substantial beneficiary;
a trust, estate, incompetent, conservatee, protected person, or minor of which the individual
is a fiduciary; or an entity of which the individual is director, general partner, agent,
employee or the governing authority or member of the governing authority. (2) ASSOCIATE. When
used to indicate a relationship with: (A) a domestic or foreign entity for which the person
is: (i) an officer or governing person; or (ii) a beneficial...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/10A-1-1.03.htm - 25K - Match Info - Similar pages
27-27-37
Section 27-27-37 Dividends - Domestic stock insurers. (a) A domestic stock insurer shall not
pay any cash dividend to stockholders except out of that part of its available surplus funds
which is derived from realized net profits on its business. (b) A stock dividend may be paid
out of any available surplus funds in excess of the aggregate amount of surplus loaned to
the insurer under Section 27-27-40. (c) A dividend otherwise proper may be payable out of
the insurer's surplus even though its total surplus is then less than the aggregate of its
past contributed surplus resulting from issuance of its capital stock at a price in excess
of the par value thereof if payment is conditioned upon receipt of the commissioner's approval
and the insurer does not pay the dividend until the commissioner has done the following: (1)
Approved the payment of the dividend, or (2) Not disapproved the payment of the dividend within
30 days after receipt of notice from the insurer of the declaration...
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27-27-26
Section 27-27-26 Pecuniary interests of officers, etc., of domestic insurers. (a) No officer
or director of a domestic insurer, and no member of any committee or employee of a domestic
insurer who is charged with the duty of investing or handling the funds of the insurer, shall
do any of the following: (1) Deposit or invest the funds except in the corporate name of the
insurer; except, that the insurer may for its convenience hold any equity investment in a
street name or in the name of a nominee. (2) Borrow the funds of the insurer. (3) Be pecuniarily
interested in any loan, pledge or deposit, security, investment, sale, purchase, exchange,
reinsurance, or other similar transaction or property of the insurer except as follows: a.
As a stockholder or member of the insurer. b. As a holder or owner of common stock or equity-like
preferred stock in any corporation or business entity trading on a national or international
stock exchange. c. As a holder or owner of shares of mutual funds,...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/27-27-26.htm - 3K - Match Info - Similar pages
5-6A-20
Section 5-6A-20 Declaration of illegal dividends, discounts of notes, etc. Any director of
a bank who knowingly concurs in any vote or act of the directors of such bank by which it
is intended to pay a cash dividend except from the undivided profits arising from the business
of the bank in violation of Section 5-5A-21, or to make or approve a loan with the stock of
the lending bank as security therefor; to divide, withdraw or in any manner pay to the stockholders
or any of them any part of the capital of the bank, or to purchase or reduce such capital,
except in pursuance of law; or to discount or receive any note or other evidence of debt in
payment of any installment of purchase price of capital actually called in and required to
be paid, or with intention to provide the means of making such payment; or to receive or discount
any note or other evidence of debt with the intent to enable any stockholder to withdraw any
part of the money paid in by him on his stock; or to apply any...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/5-6A-20.htm - 1K - Match Info - Similar pages
27-28-2
Section 27-28-2 Plan for exchange of stock, etc., between domestic stock insurer and holding
company - Procedure for exchange. A plan of exchange shall be adopted and become effective
in the following manner: (1) APPROVAL OF THE BOARDS OF DIRECTORS. - The boards of directors
of each corporate party to the plan of exchange by resolution shall adopt the plan of exchange
which shall set forth the terms and conditions of the exchange and the mode of carrying the
same into effect and such other provisions with respect to the exchange as may be deemed necessary
or desirable. (2) APPROVAL OF COMMISSIONER. - Every plan of exchange, before being submitted
to vote of the stockholders pursuant to subdivision (3) of this section, shall be submitted
for approval to the commissioner in accordance with the following procedure: a. After the
approval required by subdivision (1) of this section is obtained, the domestic company shall
submit to the commissioner three copies of the plan of exchange and...
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27-27-45
Section 27-27-45 Merger and consolidations - Domestic stock insurers. (a) A domestic stock
insurer may merge or consolidate with one or more domestic or foreign stock insurers by complying
with the applicable provisions of the statutes of this state governing the merger or consolidation
of stock corporations formed for profit, but subject to subsections (b) and (c) of this section.
(b) No such merger or consolidation shall be effectuated unless in advance thereof the plan
and agreement therefor have been filed with the commissioner and approved in writing by him
after a hearing thereon. The commissioner shall give such approval within a reasonable time
after such filing unless he finds such plan or agreement: (1) Is contrary to law; (2) Inequitable
to the stockholders of any domestic insurer involved; or (3) Would substantially reduce the
security of, and service to be rendered to, policyholders of the domestic insurer in this
state or elsewhere. (c) No director, officer, agent, or...
alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/27-27-45.htm - 2K - Match Info - Similar pages
27-27-38
Section 27-27-38 Dividends - Domestic mutual insurers. (a) The directors of a domestic mutual
insurer may, from time to time, apportion and pay or credit to its members dividends only
out of that part of its surplus funds which represents net realized savings and net realized
earnings in excess of the surplus required by law to be maintained. (b) A dividend otherwise
proper may be payable out of the savings and earnings even though the insurer's total surplus
is then less than the aggregate of its contributed surplus if payment is conditioned upon
receipt of the commissioner's approval and the insurer does not pay the dividend until the
commissioner has done the following: (1) Approved the payment of the dividend, or (2) Not
disapproved the payment of the dividend within 30 days after receipt of notice from the insurer
of the declaration thereof. (Acts 1971, No. 407, p. 707, §534; Acts 1994, No. 94-634, p.
1178, §2.)...
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