Alabama § 27-27-37 - Dividends - Domestic Stock Insurers.
Full text of Alabama Code of Alabama § 27-27-37 — Dividends - Domestic Stock Insurers., with citation guidance and answers to common questions.
§ 27-27-37. Dividends - Domestic Stock Insurers.
(a) A domestic stock insurer shall not pay any cash dividend to stockholders except out of that part of its available surplus funds which is derived from realized net profits on its business.
(b) A stock dividend may be paid out of any available surplus funds in excess of the aggregate amount of surplus loaned to the insurer under Section 27-27-40.
(c) A dividend otherwise proper may be payable out of the insurer’s surplus even though its total surplus is then less than the aggregate of its past contributed surplus resulting from issuance of its capital stock at a price in excess of the par value thereof if payment is conditioned upon receipt of the commissioner’s approval and the insurer does not pay the dividend until the commissioner has done the following:
(1) Approved the payment of the dividend, or
(2) Not disapproved the payment of the dividend within 30 days after receipt of notice from the insurer of the declaration thereof.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 27-27-37
What does Code of Alabama § 27-27-37 cover?
Section 27-27-37 ("Dividends - Domestic Stock Insurers.") 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 § 27-27-37?
A common citation format is "Code of Alabama § 27-27-37" (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 § 27-27-37 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.