HB77 Alabama 2011 Session

Summary

Primary Sponsor

Gregory Canfield

Republican

Co-Sponsors

Joe FaustGreg WrenK.L. Brown

Session

Regular Session 2011

Title

Insurance Department, commissioner to collect market conduct annual statement data for analysis purposes, procedures, confidentiality, Market Conduct Annual Statement Act

Summary

The bill would let Alabama's Insurance Commissioner collect and analyze market conduct data from insurers, with strong procedures and confidentiality protections.

What This Bill Does

It authorizes the Commissioner or a designated statistical agent to gather market conduct annual statement data from insurers for analysis. It establishes the processes for submitting, collecting, reviewing, and sharing that data, and designates how statistical agents are selected and used. It creates strict confidentiality and privilege protections for the data and requires agreements to govern use and disclosure, including limits on sharing with other parties. It applies to admitted insurers with direct written premium over $100,000 in relevant lines and allows for advance notice and possible suspension or reduction of filing requirements if data collection is deemed unnecessary.

Who It Affects

• Admitted insurers writing more than $100,000 in direct written premium in lines subject to the market conduct annual statement (MACS) — must submit data and may interact with designated statistical agents.
• The Insurance Commissioner and their designees (including MACS statistical agents) — responsible for collecting, analyzing, and sharing MACS data under defined rules.
• Market conduct annual statement statistical agents or organizations designated by the Commissioner — collect, maintain, and report MACS data and must meet specified qualifications and confidentiality requirements.
• State, federal, and international regulatory agencies and law enforcement authorities (with consent) and the National Association of Insurance Commissioners (NAIC) — may receive MACS data and analyses under confidentiality agreements.
• Insurers and data recipients — have rights to privacy protections, may intervene to prevent improper disclosures, and must comply with data-sharing agreements and confidentiality terms.

Key Provisions

• Establishes the Market Conduct Annual Statement Act to authorize the collection and analysis of market conduct annual statement data by the Commissioner or a designee.
• Defines key terms (Commissioner, Designee, Insurer, Market Analysis, Market Conduct Annual Statement, Market Conduct Annual Statement Data, Market Conduct Annual Statement Statistical Agent) and sets the scope of data and roles.
• Requires admitted insurers with direct written premium over $100,000 in MACS lines to file market conduct data annually for each applicable line of business; allows advance notice and potential suspension/reduction of filing if not needed.
• Designates one or more market conduct annual statement statistical agents to collect, compile, and report data; contracts are public records and must include scope, costs, and compliance terms; data use is limited to the act's purposes.
• Imposes strict confidentiality and privilege protections for MACS data, work papers, and analyses; prohibits subpoenas or private civil actions from compelling disclosure; requires confidentiality agreements with insurers and safeguards to protect data.
• Allows sharing of MACS data with authorized regulatory and enforcement recipients, including NAIC, under consent and with obligations to maintain confidentiality and privilege; requires agreements governing sharing and use.
• Requires the Commissioner to follow exclusive procedures for collection and sharing of MACS data; lists protections, audits, and data security expectations for designees; sets an effective date three months after passage.

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

Subjects

Insurance