SB268 Alabama 2011 Session

Summary

Primary Sponsor

Mark Slade Blackwell

Republican

Session

Regular Session 2011

Title

Insurance Department, casualty insurance companies, capital requirements required, subject to certain action level events, Secs. 27-2B-2, 27-2B-3, 27-2B-4 am'd.

Summary

SB268 would extend Alabama's risk-based capital (RBC) company action level framework to property and casualty insurers, requiring capital plans and regulatory responses when RBC indicators rise.

What This Bill Does

It extends the current company action level event rule to property and casualty insurers based on their RBC report levels. If such an event occurs, the insurer must file an RBC plan within 45 days outlining corrective actions, five-year projections with and without those actions, and key assumptions and risks; the plan is reviewed by the commissioner, who can find it satisfactory or unsatisfactory. If the plan is unsatisfactory, the commissioner may declare a regulatory action level event and require a revised RBC plan. The bill also makes minor citation corrections and clarifications and sets an effective date of January 1, 2012.

Who It Affects

• Property and casualty insurers authorized to do business in Alabama: would be subject to company action level events and RBC plan requirements based on RBC reports.
• Alabama Department of Insurance (the Commissioner) and staff: would review RBC reports, approve or require revisions to RBC plans, and impose regulatory actions if plans are unsatisfactory.

Key Provisions

• Property and casualty insurers would be subject to a company action level event when their adjusted RBC indicates total capital at least equal to the company action level RBC but less than 3.0 times the authorized control level RBC, and the trend test is triggered for property and casualty RBC instructions.
• The bill defines and clarifies key RBC terms (adjusted RBC report, RBC level types, authorized control level RBC, etc.) to reflect these changes for property and casualty insurers.
• If a company action level event occurs, the insurer must file an RBC plan within 45 days detailing conditions causing the event, proposed corrective actions, five-year financial projections with and without the actions, and the key assumptions and risks involved.
• The commissioner will review the RBC plan and notify the insurer whether it is satisfactory; if unsatisfactory, the insurer must revise and resubmit the plan within specified timeframes, and the commissioner may declare a regulatory action level event.
• If requested by other states with similar RBC provisions, the insurer must file a copy of the RBC plan with those states within applicable deadlines.
• The act includes correcting a citation and making clarifying nonsubstantive changes, and becomes effective January 1, 2012.

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