Alabama. Dept. of Insurance.

Sources:

Alabama Government Manual, 1982.

Alabama Official and Statistical Register, 1979.

Code of Alabama, 1975.

Acts 1859-1860, No. 136, p. 113.

Acts 1915, No. 730, p. 834.

Acts 1951, No. 234, p. 504.

Acts 1971, No. 407, p. 707.

The Department of Insurance supervises and regulates the insurance business in Ala., including insurance-related activities of legal service corporations. The Department inspects mobile homes and public buildings, investigates cases of suspected arson and inspects fireworks storage locations.

The Commissioner of Insurance is appointed by the Governor to serve a term concurrent with that of the Governor. The individual holding the office is selected with special reference to training, experience, and capacity and is not allowed to hold or be a candidate for any other public office. The compensation is determined by the Governor. The Commissioner administers state laws regulating or relating to insurance, the insurance business, insurance companies, and laws applicable to the State Fire Marshal. The Commissioner promulgates rules and regulations and may institute any suit in law or equity to enforce laws or regulations concerning insurance. The Commissioner collects all taxes, fees and penalties from insurance companies and other persons and concerns that may be required by law. Furthermore, he examines all domestic and foreign insurance companies qualifying to do business in the State. The Commissioner examines, licenses and regulates insurance agents, solicitors, brokers, adjusters, and mobile home dealers and manufacturers.

The Commissioner is responsible for providing mortality tables, which are published with Acts of the Legislature, and is required by law to act as receiver and administrator of any insurance company placed in receivership. The Commissioner makes recommendations and submits an annual report to the Governor, serves as agent for service of process for all insurance companies doing business in the state, and is responsible for prior approval of all insurance policies sold in the state and all rates applicable to the writing of property and casuality coverage and contracts sold by nonprofit accident and health associations. The Commissioner, additionally, is legally empowered to appoint and/or employ any personnel deemed necessary and pertinent to the administration, expedition, and perpetuation of the Department's legislatively allocated duties/functions. Under the direction and supervision of the Commissioner is the Assistant Commissioner charged with overall supervision of the Department, subject to any restrictions placed on this supervision by the Commissioner. (Ala. Government Manual, 1982)

In 1860, the General Assembly set forth that any agency or agents of any fire, river, or marine insurance company must procure a certificate of authority from the Controller of the State in order to conduct such business as it may have been inclined to undertake. Furthermore, this act stated that the aforementioned companies must submit annual reports to the said Controller, thus the first instances of governmental regulation in the insurance field in the State of Ala.; however, the first formal departmental structure specifically created, authorized, and empowered to regulate, conduct, and undertake such activities related to insurance did not come into existence until several years later. (Acts 1859-1860, No. 136, p. 113)

In 1915, a Department of Insurance was created to administer all laws, then in force or, which may have thereafter been enacted relating to insurance companies doing business in the State of Ala. Furthermore, the newly created department assumed all examination duties of the Secretary of State for both foreign and domestic companies. The original Department of Insurance was administered, supervised, and controlled by a Commissioner of Insurance. The said Commissioner was appointed by and acted at the pleasure of the Governor of the State of Ala. The Commissioner was granted possession of all powers, and the capacity for performance of all duties of supervision, regulation, and control of the business of insurance in State; these said powers and duties had previously been exercised by the Secretary of State. Furthermore, the Commissioner was authorized to exercise the same control over the State's insurance companies, their officers and agents, as well as the capacity to collect all taxes, fees, and penalties, as were required by law, or may have thereafter been required by law. (Acts 1915, No. 730, p. 834)

In 1951, as a result of an act of the Legislature, a reorganization occurred in the Department of Insurance. The newly reorganized or "re-created" Department of Insurance was legally authorized to administer the laws of the State which regulated or otherwise related to insurance, the insurance business, and the insurance companies, associations, exchanges, societies, and their agents and representatives doing business in the state, the administration of which had theretofore been charged to the Department of Commerce and the Director thereof, the Bureau of Insurance, the Bureau of Rates of the Department of Commerce and the Office of Fire Marshal; the Department's authority to perform such functions was exclusive. (Acts 1951, No. 234, Sec. 1-3)

The Superintendent of Insurance was placed at the administrative helm of the Department. He, as was the case with many other such officers, was appointed by the Governor for a four year term. Furthermore, he served under the leadership, pleasure and control of the Governor. He was authorized to exercise general supervision and make regulations for the government of the said department; to prescribe uniform rules pertaining to investigations and departmental hearings; to supervise the fiscal affairs and responsibilities of the Department; to prescribe the qualifications of, appoint, remove and fix the compensation of officers and employees of the Department (subject to the Merit System); to organize and administer the Department so as to comply with the requirements of law; and to perform all duties of the Department which relate to the supervision, regulation, and control of the business of insurance within the boundaries of and pertaining to the State of Ala. Concretely the Superintendent was legally empowered to execute all powers, duties, and functions deemed pertinent to the administration, expedition, and perpetuation of the said Department's legally allocated duties/functions. (Acts 1951, No. 234, Sec. 4-9)

In 1971, a comprehensive effort was undertaken to revise, consolidate, and classify the laws of the State of Ala. relating to insurance and to the insurance business, thus facilitating the reorganization of the Department of Insurance. Though, as was previously stated, the process was quite comprehensive and broad, the Department of Insurance underwent no tremendous revision or reorganization. Changes regarding the said Department were moreso changes in the "letter of the law" than in the "spirit of the law"; therefore, the overall scope, content, and composition of the aforementioned, previously authorized powers of the said Department remained virtually constant and unmolested. (Acts 1971, No. 407)

Administrative divisions of the Dept. of Insurance (Ala. Government Manual, 1986):

Financial Division.

Legal Division.

Program divisions of the Dept. of Insurance (Ala. Government Manual, 1986):

State Fire Marshal (ALAV86-A802).

Property and Casualty Division.

Agents' Licensing Division.