Alabama § 27-27-38 - Dividends - Domestic Mutual Insurers.
Full text of Alabama Code of Alabama § 27-27-38 — Dividends - Domestic Mutual Insurers., with citation guidance and answers to common questions.
§ 27-27-38. Dividends - Domestic Mutual Insurers.
(a) The directors of a domestic mutual insurer may, from time to time, apportion and pay or credit to its members dividends only out of that part of its surplus funds which represents net realized savings and net realized earnings in excess of the surplus required by law to be maintained.
(b) A dividend otherwise proper may be payable out of the savings and earnings even though the insurer’s total surplus is then less than the aggregate of its contributed surplus 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 § 27-27-38
What does Code of Alabama § 27-27-38 cover?
Section 27-27-38 ("Dividends - Domestic Mutual 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 § 27-27-38?
A common citation format is "Code of Alabama § 27-27-38" (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 § 27-27-38 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.