Ala. Admin. Code r. 281-2-1-.05 - Certified Investor

Current through Register Vol. 40, No. 6, March 31, 2022

(1) An insurance 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 CAPCO.
(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 CAPCO.
(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.
(3) 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 Act.
(5) Nothing in this section shall limit an insurance company's ownership of nonvoting equity interests in a CAPCO.
(6) Each CAPCO shall report to the ADO as soon as practicable after the receipt of certified capital the following:
(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 received.
(7) A certified 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


Ala. Admin. Code r. 281-2-1-.05
New Rule: Filed July 25, 2003; effective August 29, 2003. Amended: Filed February 6, 2008; effective March 12, 2008.

Statutory Authority: Code of Ala. 1975, as amended; Act 2002-429.

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