Alabama § 40-12-414 - License - Proof of Financial Responsibility.
Full text of Alabama Code of Alabama § 40-12-414 — License - Proof of Financial Responsibility., with citation guidance and answers to common questions.
§ 40-12-414. License - Proof of Financial Responsibility.
(a) Except as provided in subsection (b), every person, firm, or corporation, before being licensed under this article, must show proof of responsibility by depositing with the Commissioner of Revenue a continuing bond in the amount prescribed in Section 40-12-398 with surety thereon of a company authorized to do business in the State of Alabama, which bond shall be approved by the Commissioner of Revenue, payable to the State of Alabama, and shall be conditioned upon the faithful observance of all the provisions of this article and shall also indemnify any person who suffers any loss by reason of a failure to observe the provisions of this article.
(b) The department, by rule, may permit a surety bond obtained pursuant to Section 40-12-398, to serve in lieu of the surety bond prescribed in subsection (a).
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 40-12-414
What does Code of Alabama § 40-12-414 cover?
Section 40-12-414 ("License - Proof of Financial Responsibility.") 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 § 40-12-414?
A common citation format is "Code of Alabama § 40-12-414" (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 § 40-12-414 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.