Section 27-31B-13 Reinsurance. - Alabama Statutes

Section 27-31B-13

Reinsurance.

(a) A captive insurance company may provide reinsurance, as authorized in this title, on risks ceded by any other insurer.

(b) A captive insurance company may take credit for reserves on risks or portions of risks ceded to reinsurers complying with paragraphs a. through d. of subdivision (2) of subsection (b) of Section 27-5-12. A captive insurer shall not take credit for the reserves on risks or portions of risks ceded to reinsurers not complying with paragraphs a. and d. of subdivision (2) of subsection (b) of Section 27-5-12.

(c) For all purposes of this chapter, insurance by a captive insurance company of any workers' compensation qualified self-insured plan of its parent and affiliates shall be deemed to be reinsurance.

(Act 2006-509, p. 1153, §1.)