Minimum Capital Surplus & Deposit Requirements
Foreign Stock Life Companies
Paid-up capital
$800,000.00
Surplus if company has been in business five or more years
$800,000.00
Surplus if company has been in business less than five years
$1,200,000.00
Deposit in this state
NONE
Deposit in home state for protection of all policyholders
and creditors (Market Value)
$100,000.00
Foreign Mutual Life Insurance Companies
Unimpaired surplus if company has been in business five or more years
$800,000.00
Special surplus if company has been in business less than five years
$1,200,000.00
Special surplus if company has been in business five or more years
$800,000.00
Deposit requirements are same as for stock insurer.
Authority for Life includes authority to write Accident and Health insurance.
Foreign Property, Casualty & Surety Companies (Stock)
Lines of Insurance
Capital
Surplus (2)
Policyholders Surplus
Property
$300,000
$300,000
$600,000
Marine
$300,000
$300,000
$600,000
Casualty (1)
$400,000
$400,000
$800,000
Surety
$350,000
$350,000
$700,000
Multiple lines & two or more
$500,000
$500,000
$1,000,000
Deposit in home state for protection of all policyholders and creditors (Market Value)
$100,000
Title Companies
Line
Captial
Surplus
Policyholders surplus
Title (3)
$200,000
$200,000
$400,000
A casualty insurer may also transact disability insurance without additional capital or surplus.
Surplus – Column 2 reflects minimum surplus required of a stock insurer that has actively transacted insurance as an authorized insurer in its state or country of domicile for more than five years, or is a wholly owned subsidiary of a licensed insurer, or is a continuing corporation resulting from a merger or consolidation of insurers at least one of which has been licensed in its home state for at least five years. If the company has been licensed less than five years, is not a wholly owned subsidiary of a licensed insurer or is not a continuing corporation, as defined above, increase surplus required above by 50%. (Example: Stock property insurer, three years old – Capital $300,000; Surplus $450,000)
Title companies must maintain a deposit in a bank or trust company in the State of Alabama approved by the Commissioner of Insurance in the amount of $50,000. (Section 27-3-13, 1975 Code of Alabama)
MUTUAL INSURER OR RECIPROCAL EXCHANGE: A mutual insurer or reciprocal must possess surplus equal to the combined capital and surplus required of a stock insurer as set out above. Deposit requirements are same as for stock insurer. Authority for Life includes authority to write Accident and Health insurance.
August 29, 2008
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