Section 27-30-18 Deposit - Amounts; purpose; kind. - Alabama Statutes

Section 27-30-18

Deposit - Amounts; purpose; kind.

(a) Each mutual aid association shall, prior to issuance of its certificate of authority, deposit and thereafter maintain on deposit with the Treasurer of the State of Alabama securities of the kind authorized under subsection (d) of this section, in the amount of not less than $5,000.00. If in any calendar year the gross premium receipts of the association from business done within this state exceed $50,000.00, the association shall, not later than the March 30 next following such calendar year, increase the amount of its deposit so made and maintained in accordance with the following schedule:

Gross premium receipts during calendar year

Amount of deposit required

More than	$50,000 but less than	$150,000	$10,000
Equal to	150,000 but less than	250,000	15,000
Equal to	250,000 but less than	350,000	20,000
Equal to	350,000 but less than	500,000	25,000
Equal to	500,000 but less than	750,000	50,000
Equal to	750,000 but less than	1,000,000	75,000
Equal to	1,000,000 or more		100,000

(b) Any such deposit is so made and shall be so held by the State Treasurer in trust for the benefit and protection of the contract or policyholders in this state of the depositing mutual aid association.

(c) The term "gross premium receipts" as used in this section shall include all sums received by the association as fees, dues, premiums, contributions, or by whatever other name called from its contract or policyholders as consideration for, or in connection with, such contracts and policies.

(d) All such deposits shall consist of assets, approved by the commissioner, such as are eligible for deposit generally under subsection (a) of Section 27-6-3.

(Acts 1935, No. 114, p. 165; Acts 1971, No. 407, p. 707, §574.)