Section 27-26-28 Stabilization reserve fund - Charge. - Alabama Statutes

Section 27-26-28

Stabilization reserve fund - Charge.

(a) Each policyholder shall pay to the association a stabilization reserve fund charge equal to one third of each premium payment due for insurance through the association. Such charge shall be separately stated in the policy. The association shall cancel the policy of any policyholder who fails to pay the stabilization reserve fund charge.

(b) The association shall promptly pay to the trustee of the fund all stabilization reserve fund charges which it collects from its policyholders and any retrospective premium refunds payable under the group retrospective rating plan authorized by this chapter.

(Acts 1975, No. 513, p. 1148, §7(19), (20).)