Current through Register Vol. 40, No. 6, March 31, 2022
company or other persons who may have state premium tax liability or the
affiliates of the insurance companies or other persons may not directly or
indirectly do any of the following:
(a) Manage a
(b) Beneficially own, whether
through rights, options, convertible interests, or otherwise, more than fifteen
percent (15%) of the outstanding voting securities of a CAPCO.
(c) Control the direction of investments by a
(2) Not more than
one (1) certified investor in any CAPCO or affiliates thereof, may provide a
guaranty, indemnity, bond, insurance policy, or other payment undertaking in
favor of all of the certified investors of the CAPCO and its affiliates with
respect to any program.
Subsection (1) of this section applies without regard to whether the insurance
company or other person or the affiliate of the insurance company or other person
is licensed by or transacts business in the State of Alabama.
(4) The Act does not preclude a certified
investor, an insurance company, or any other person from exercising its legal
rights and remedies, including interim management of a CAPCO, if authorized by
law, with respect to a CAPCO that is in default of its statutory or contractual
obligations to the certified investor, insurance company, or other person, or
establishing controls to ensure that the CAPCO satisfies the requirements of the
(5) Nothing in this section
shall limit an insurance company's ownership of nonvoting equity interests in a
Each CAPCO shall report to
the ADO as soon as practicable after the receipt of certified capital the
(a) The name of each certified
investor from whom the certified capital was received, including the certified
investor's insurance premium tax identification number.
(b) The amount of each certified investor's
investment of certified capital and premium tax credits.
(c) The date on which the certified capital was
investor may not make an investment with a CAPCO with respect to program one
before January 25, 2004, and with respect to program two before April 4, 2008.
F. Neal Wade