Alabama § 27-40-15 - Premium Financed to Be Sent to Insurance Company, Agent, or Surplus Lines Broker; Issuance of Drafts, Etc.; Duties with Respect to Cancellation.
Full text of Alabama Code of Alabama § 27-40-15 — Premium Financed to Be Sent to Insurance Company, Agent, or Surplus Lines Broker; Issuance of Drafts, Etc.; Duties with Respect to Cancellation., with citation guidance and answers to common questions.
§ 27-40-15. Premium Financed to Be Sent to Insurance Company, Agent, or Surplus Lines Broker; Issuance of Drafts, Etc.; Duties with Respect to Cancellation.
(a) The amount of premium financed, more specifically referred to as “the principal balance” in paragraph c. of subdivision (3) of subsection (a) of Section 27-40-8, shall be sent to the insurance company or companies, or the agent or surplus lines broker.
(b) All drafts, checks, or other orders of payment issued for premiums financed shall be issued by or on behalf of the premium finance company and shall be mailed, delivered, or otherwise transmitted directly to the insurance company or its agent, or surplus lines broker. Any check, draft, or other order or form of payment to any insurance agent, insurance broker, managing general agent, or other person, when issued shall be presumed to have been issued by the duly authorized agent of the premium finance company which provided the checks or drafts to the person issuing the same for the purpose of issuance of such instrument.
(c) Notwithstanding anything to the contrary in this section, the insurance company shall not be relieved of any of its duties or responsibilities with respect to the cancellation of any insurance contract which is subject to the premium finance agreement.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 27-40-15
What does Code of Alabama § 27-40-15 cover?
Section 27-40-15 ("Premium Financed to Be Sent to Insurance Company, Agent, or Surplus Lines Broker; Issuance of Drafts, Etc.; Duties with Respect to Cancellation.") 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 § 27-40-15?
A common citation format is "Code of Alabama § 27-40-15" (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 § 27-40-15 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.