Alabama § 27-27-12 - Deposit of Solicitation Permit Funds in Escrow - Requirement.
Full text of Alabama Code of Alabama § 27-27-12 — Deposit of Solicitation Permit Funds in Escrow - Requirement., with citation guidance and answers to common questions.
§ 27-27-12. Deposit of Solicitation Permit Funds in Escrow - Requirement.
(a) All funds received in Alabama pursuant to a solicitation permit, other than advance premiums for insurance which are subject to Section 27-27-18, shall, by the permit holder, be deposited and held in escrow in a bank or trust company located in this state under an agreement approved by the commissioner.
(b) No part of such funds shall be withdrawn from such deposit, except:
(1) For the payment of promotion, sales, and organization expenses as authorized by the solicitation permit, and funds for such purposes may be withheld from the deposit;
(2) For the purpose of making any deposit with the commissioner required for the issuance of a certificate of authority to an insurer;
(3) If the proposed organization is not to be an insurer, upon completion of payments on securities subscriptions made under the solicitation permit and deposit or appropriation of such funds to the purposes specified in the solicitation permit; or
(4) For making of refunds as provided in Section 27-27-13.
(c) When the commissioner has issued a certificate of authority to an insurer, any such funds remaining in escrow for its account shall be released to the insurer.
(d) The commissioner may waive compliance with this section as to funds required to be deposited in escrow or trust in similar institutions and for similar purposes as set forth in this section pursuant to any other law of this state.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 27-27-12
What does Code of Alabama § 27-27-12 cover?
Section 27-27-12 ("Deposit of Solicitation Permit Funds in Escrow - Requirement.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 27-27-12?
A common citation format is "Code of Alabama § 27-27-12" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 27-27-12 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.