Ala. Code § 27-31B-13: Reinsurance.

(a) A captive insurance company may provide reinsurance, as authorized in this title, on risks ceded by any other insurer.

(b) A captive insurance company may take credit for reserves on risks or portions of risks ceded to reinsurers complying with Sections 27-5B-4 through 27-5B-9. A captive insurer shall not take credit for the reserves on risks or portions of risks ceded to reinsurers not complying with Sections 27-5B-4 through 27-5B-9.

(c) For all purposes of this chapter, insurance by a captive insurance company of any workers’ compensation plan of its parent and affiliates shall be deemed to be reinsurance.