SB10 Alabama 2010 1st Special Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsors

William “Bill” M. BeasleyRodger SmithermanQuinton RossRoger Bedford, Jr.Priscilla DunnGeorge M. “Marc” KeaheyVivian Davis FiguresJerry L. Fielding

Session

First Special Session 2010

Title

Ethics Law, legislators, acceptance of any thing of value, prohibited, campaign contributions excepted, penalties

Summary

SB10 would let certain foreign and alien surplus line insurers bypass a five-year in-state requirement if they place a special deposit in Alabama, with specific financial and regulatory conditions for insurers, brokers, and deposits to protect policyholders.

What This Bill Does

The bill amends the surplus line insurance law to create an exception to the five-year domicile requirement for foreign and alien surplus line insurers that deposit funds in Alabama. It sets financial thresholds and deposit requirements for various insurer types, and it restricts brokers from placing coverage with insurers that don’t meet these criteria. It also allows brokers to file a supplemental statement when coverage is not procurable from eligible insurers, and it requires certain unauthorized insurers to deposit at least $1,000,000 with the department to benefit Alabama policyholders; the act becomes effective immediately after passage and governor approval.

Who It Affects

• Surplus line brokers, who must verify an insurer's financial condition, avoid certain insurers, and may file supplemental statements with the department.
• Foreign and alien surplus line insurers, who may qualify for the five-year exception if they place a state deposit and meet specified financial thresholds.
• Alabama policyholders, who gain enhanced protection through department-held deposits and oversight of surrogate insurers.
• Alabama Department of Insurance, which holds deposits and may adopt rules to implement the new provisions.
• Recognized financial institutions, which would hold deposits on behalf of Alabama policyholders.
• Insurers with government or governmental agency voting control, which are restricted under the bill.

Key Provisions

• Amends Section 27-10-26 to provide an exception to the five-year requirement for foreign and alien surplus line insurers submitting a deposit in Alabama.
• Establishes financial thresholds and conditions for insurers and alien insurers to be eligible under the exception (e.g., minimum capital/surplus or trust funds).
• Prohibits brokers from insuring with certain insurers unless they meet specified criteria, including duration of activity and deposit requirements.
• Allows brokers to file a supplemental signed statement when some risk is procurable from insurers meeting most criteria except for the specific exception in (3), detailing the entities and amounts involved.
• Requires named unauthorized insurers to deposit with the department at least $1,000,000 in cash or marketable securities to be held for Alabama policyholders, with deposits administered under the department’s rules.
• Effective date clause: the act becomes effective immediately after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Ethics