Alabama § 27-41-6 - Limitations Upon Investments Generally.
Full text of Alabama Code of Alabama § 27-41-6 — Limitations Upon Investments Generally., with citation guidance and answers to common questions.
§ 27-41-6. Limitations Upon Investments Generally.
(a) An insurer shall not have at any one time any single investment or combination of investments in or loans upon the security of the obligations, property, or securities of any one person aggregating in cost to the insurer in excess of the greater of 10 percent of such insurer’s assets or the total of its capital and surplus, as shown in the latest annual report of the insurer filed pursuant to subsection (a) of Section 27-3-26 of the Alabama Insurance Code, less the minimum capital and surplus required of said insurer for authority to transact insurance by Sections 27-3-7 and 27-3-8 of the Alabama Insurance Code.
The restriction of this subsection shall not apply to evidences of indebtedness issued, assumed, or guaranteed by the United States of America or any department, agency, or instrumentality thereof or by any state of the United States.
(b) An insurer shall at all times invest and maintain invested funds in cash and assets allowed in the following sections of this chapter in an amount not less than the capital required of it to transact insurance by Section 27-3-7 of the Alabama Insurance Code:
(1) Section 27-41-7 (United States government obligations).
(2) Section 27-41-9 (state, county, municipal, and school obligations).
(3) Section 27-41-29 (mortgage loans).
(c) An insurer shall at all times invest and maintain invested funds in cash and the investments prescribed in this chapter in an amount not less than the amount of the reserves under its policies and annuity contracts in force.
(d) Limits as to investments shall apply as stated in specific sections relating to particular kinds of investments.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 27-41-6
What does Code of Alabama § 27-41-6 cover?
Section 27-41-6 ("Limitations Upon Investments Generally.") 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 § 27-41-6?
A common citation format is "Code of Alabama § 27-41-6" (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 § 27-41-6 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.