# Ala. Code § 27-31B-7: Section 27-31B-7 Dividends

> Alabama · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-7

## Section

- **Citation:** Ala. Code § 27-31B-7
- **Heading:** Section 27-31B-7 Dividends
- **Jurisdiction:** Alabama
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Alabama Code / Title 27 / Chapter 31B / Section 27-31B-7

## Text

No captive insurance company may pay a dividend out of, or other distribution with respect to, capital or surplus, in excess of the limitations set forth in subsection (g) of Section 27-29-5, without the prior approval of the commissioner. Approval of an ongoing plan for the payment of dividends or other distributions shall be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the commissioner.

## Nearby sections

- [Ala. Code § 27-31B-1 Section 27-31B-1 Short Title](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-1.md)
- [Ala. Code § 27-31B-2 Section 27-31B-2 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-2.md)
- [Ala. Code § 27-31B-3 Section 27-31B-3 Licensing. (Amended by Act 2026-486)](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-3.md)
- [Ala. Code § 27-31B-4 Section 27-31B-4 Fees](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-4.md)
- [Ala. Code § 27-31B-5 Section 27-31B-5 Names of Companies](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-5.md)
- [Ala. Code § 27-31B-6 Section 27-31B-6 Minimum Capital and Surplus. (Amended by Act 2026-486)](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-6.md)
- [Ala. Code § 27-31B-7 Section 27-31B-7 Dividends](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-7.md)
- [Ala. Code § 27-31B-8 Section 27-31B-8 Formation of Captive Insurance Companies in This State. (Amended by Act 2026-486)](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-8.md)
- [Ala. Code § 27-31B-9 Section 27-31B-9 Reports and Statements. (Amended by Act 2026-486)](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-9.md)
- [Ala. Code § 27-31B-10 Section 27-31B-10 Examinations and Investigations](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-10.md)
- [Ala. Code § 27-31B-11 Section 27-31B-11 Grounds and Procedures for Suspension or Revocation of License](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-11.md)
- [Ala. Code § 27-31B-12 Section 27-31B-12 Legal Investments](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-12.md)
- [Ala. Code § 27-31B-13 Section 27-31B-13 Reinsurance](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-13.md)
- [Ala. Code § 27-31B-14 Section 27-31B-14 Rating Organizations; Memberships](https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-14.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AL_T27_C31B_S27-31B-7. Check the current official text before relying on it. Not legal advice.