Alabama

Unauthorized insurers must meet the criteria that are stated in the Alabama Code Section 27-10-26 to be eligible to do business in Alabama.

Alabama does not maintain an Eligible Insurer list.27‑10‑26 Eligibility of insurers for placement of surplus line insurance.   Surplus lines insurance may be placed by a surplus line broker if the insurer is financially sound and meets one of the following criteria:

(1) The insurer is authorized in at least one state of the United States for the kind of insurance involved and has:

(a) Capital or surplus, or both, of at least five million dollars ($5,000,000); or (b) A guaranteed trust fund of at least five million dollars ($5,000,000); or

(2) The insurer is an alien insurer that is:

(a) Authorized to transact insurance in at least one state of the United States, or (b) Listed on the NAIC Quarterly Listing of Alien Insurers, & has

(c) An effective U.S. trust fund of at least two million five hundred thousand dollars ($2,500,000), and (d) Capital or surplus, or both, of at least fifteen million dollars ($15,000,000); or

(3) The insurer is a foreign or alien insurer that has transacted insurance as an authorized insurer in its domicile for not less than five years, unless it is a wholly owned subsidiary of an insurer authorized in Alabama or makes a qualifying deposit under subsection (c); or

(4) The insurer is controlled, in whole or substantial part, by a government or governmental agency; or

(5) The insurer has not been made ineligible by order of the commissioner for:

(a) Failing to meet the financial requirements of this section; (b) Unjustified refusal to pay valid claims or conduct causing injury to Alabama policyholders; or (c) Conduct intended to avoid payment of Alabama surplus lines taxes.