Section 10-4-112

Deposit of securities with State Treasurer.

Every such corporation shall deposit with, and thereafter maintain on deposit with, the Treasurer of the State of Alabama bonds of the United States government or of the State of Alabama, or of any subdivision thereof, or first mortgages on real estate situated in Alabama securing an indebtedness not in excess of 50 percent of the appraised value thereof, subject to the approval of the Commissioner of Insurance, in an amount to be determined as of the first day of January of each year as follows:

(1) Every such company whose gross annual premium receipts from business done within this state for the preceding year ending December 31 are less than $50,000.00 shall so deposit and maintain securities of par and market value not less than $5,000.00;

(2) Every such company whose such gross annual premium receipts so computed are in excess of $50,000.00 and less than $150,000.00 shall so deposit and maintain such securities of par and market value not less than $10,000.00;

(3) Every such company whose such gross annual premium receipts so computed are in excess of $150,000.00 and less than $250,000.00 shall so deposit and maintain such securities of par and market value not less than $15,000.00; and

(4) Every such company whose such gross annual premium receipts so computed shall exceed the sum of $250,000.00 shall so deposit and maintain such securities of a par and market value of not less than $20,000.00; provided, that before any such company shall be licensed to, or shall, engage in any business in this state, it shall so make an initial deposit of such securities of a par and market value not less than $3,000.00.

The securities so deposited may from time to time with the approval of the Commissioner of Insurance and the Treasurer be replaced by other authorized securities of equal value. The deposit so maintained shall constitute a trust fund primarily for the security of persons holding certificates or policies of such company.

(Acts 1935, No. 544, p. 1157; Code 1940, T. 28, §312.)