- (1) A letter of credit may be used in lieu of establishing and maintaining a merchandise and services trust. The letter of credit, its form, and amount must be approved by the Commissioner prior to use.
- (2) The letter of credit must be “evergreen,” meaning it will not expire without an affirmative action by the issuer of the letter of credit. The amount of the letter of credit shall be determined in the same manner as indicated in Rule 482-3-004-.07 for the amount of surety bonds.
Author: Commissioner of Insurance
Statutory Authority: Code of Ala. 1975, §§27-2-17, 27-17A-1 to -57 (2014).
History: New Rule: November 13, 2014; effective January 1, 2015. Filed with LRS November 13, 2014. Rule is not subject to the Alabama Administrative Procedure Act.