HB573 Alabama 2010 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2010

Title

Insurance companies, domestic, home office kept outside this state, requirement for duplicate records and office managed by officer of company deleted, records available to commissioner on request, Sec. 27-27-29 am'd.

Summary

HB573 would relax where Alabama domestic insurers keep records and offices, allowing more records and executive offices to be outside the state while ensuring the Insurance Commissioner can access them.

What This Bill Does

Deletes the old requirement that a domestic insurer maintain a complete duplicate set of records in Alabama and keep an in-state office managed by Alabama officers. Requires insurers to keep suitable and customary records and to make them available to the Commissioner of Insurance at offices outside Alabama. Keeps the rule that the insurer’s principal place of business and home office remain in Alabama and that most assets stay in Alabama, with specific exceptions for property outside the state used to operate branch or regional offices or to meet other jurisdictions’ needs. Allows branch or regional offices outside Alabama and, with the Commissioner’s permission, executive offices outside Alabama, as long as a complete duplicate set of records remains in Alabama and outside records are readily available on reasonable notice; not apply to actions before 1972 (future actions only); and the act becomes effective immediately after passage.

Who It Affects

• Domestic insurers operating in Alabama: gain more flexibility to keep records and some offices outside Alabama, but must ensure records are suitable and accessible to the Alabama Insurance Commissioner.
• Alabama Insurance Commissioner/Department: gains expanded access to insurer records kept outside Alabama and the authority to enforce records access and, if needed, delinquency actions for violations.

Key Provisions

• Deletes requirement to maintain a complete duplicate set of records in Alabama and an in-state office managed by Alabama officers.
• Requires suitable records to be kept and made available to the Commissioner at offices outside Alabama; records must be readily examinable upon request.
• Maintains in-state principal place of business/home office and assets in Alabama, with exceptions for real property outside the state and property necessary for operating branch/regional offices abroad.
• Allows establishment of branch/regional offices outside Alabama, with records kept outside but readily available for examination by the Commissioner; permits funds/assets outside Alabama as required by law in other jurisdictions.
• Allows good-cause external executive offices outside Alabama with the Commissioner’s written permission, provided a duplicate set of records remains in Alabama and all records outside are available on reasonable notice.
• Penalties for removal or concealment of records: felony, fines up to $10,000, up to five years in prison, or both; Commissioner may initiate delinquency proceedings for violations.
• Notwithstanding other provisions, the act applies only to actions after January 1, 1972; pre-1972 actions are exempt.
• Clearinghouse or book-entry deposit systems may be used to evidence ownership of assets.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance