Section 27-43-8


Published: 2015

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Section 27-43-8

Section 27-43-8Filing of application for certificate of authority; contents of application; issuance of certificate.

(a) The incorporators shall file with the commissioner an application for a certificate of authority to do business upon a form to be furnished by the department, which shall include or have attached the following:



(1) The names and, for the preceding 10 years, all addresses and all occupations of all incorporators and proposed directors and officers;



(2) A certified copy of the corporate articles and bylaws and a list of the names, addresses and occupations of all directors and principal officers and, if previously incorporated, for the three most recent years, the corporation annual statements and reports;



(3) All agreements relating to the corporation to which any incorporator or proposed director or officer is a party;



(4) A statement of the amount and sources of the funds available for organization expenses and the proposed arrangements for reimbursement and compensation of incorporators or other persons;



(5) A statement of compensation of directors and officers;



(6) The forms to be used for any proposed contracts between the corporation and providers of legal services and any corporations which perform administrative, marketing or management services, concerning the provision of services to insureds;



(7) The plan for conducting the insurance business, including all of the following:



a. The geographical area in which business is intended to be done in the first five years;



b. The types of insurance intended to be written in the first five years, including specification whether and to what extent indemnity rather than service benefits are to be provided;



c. The proposed marketing methods;



d. Actuarial data or other similar statistical data, documented and verified in such manner as the department may reasonably require, affirmatively demonstrating the anticipated income and expenses in the first five years, including, without limitation, the projected expenditure for legal services and projected source of funds to make up any anticipated deficits.



(8) A current statement of the assets and liabilities of the applicant;



(9) Forms of all prepaid legal service contracts the applicant proposes to offer showing the rates to be charged for each form of contract; and



(10) Such other documents or information as the department may reasonably require;



(b) Copies of the documents filed pursuant to subdivisions (6) and (9) of subsection (a) of this section shall be filed with the State Bar of Alabama within five days of filing with the commissioner;



(c) The commissioner shall issue a certificate of authority if he is satisfied that:



(1) All requirements of law have been met;



(2) All natural persons who are incorporators, the directors and principal officers of corporate incorporators and the proposed directors and officers of the corporation being formed are trustworthy and competent and collectively have the competence and experience to engage in the particular insurance business proposed; and



(3) The business plan is consistent with the interests of the corporation's potential insureds and of the public.

(Acts 1981, No. 81-719, p. 1214, §1.)