No licensed insurance producer or broker may solicit, obtain or accept a loan from a person who is an existing or former client, except in the case of one of the following:

1. (a) The person is acting in the capacity as an employee of a lending institution authorized by state or federal law.
2. (b) The person is individually licensed as a lender according to state or federal law.
3. (c) There is a written contract establishing the terms for repayment of the loan and the contract is filed with the Legal Division of the Department of Insurance within thirty (30) days of its effective date.

Author: Commissioner of Insurance

Statutory Authority: Code of Ala. 1975, §§27-2-17, 27-12-21

History: New Rule: February 18, 2000; effective July 1, 2000. Amended: December 21, 2005; effective December 31, 2005. Filed with LRS December 21, 2005. Rule is not subject to the Alabama Administrative Procedure Act.