SB314 Alabama 2011 Session

Summary

Primary Sponsor

Mark Slade Blackwell

Republican

Session

Regular Session 2011

Title

Insurance, domestic insurers, investments of, prohibited activities with certain exceptions, financial institutions authorized in the state in lieu of assets, except deposits for outside of state, removing or concealing assets or records, prohibited, using custodial arrangements for holding securities, prohibited, investment activities further regulated, Secs. 27-27-26, 27-27-29, 27-41-5, 27-41-27 am'd.; Act 2010-685, 2010 Reg. Sess. am'd.

Description

Under existing law, a domestic insurer may not be pecuniarily interested in certain investment activities, and may maintain its principal place of business outside of this state if it maintains a complete duplicate set of records and keeps an office in this state managed by one or more officers of the insurer in this state.

This bill would provide certain exemptions from pecuniary interests to certain officers or directors, or members of a committee or employees of a domestic insurer who are charged with the duty of investing or handling the funds of the insurer.

This bill would require a domestic insurer to maintain its assets in a financial institution conducting business in this state.

This bill would allow domestic insurers to deposit assets of the insurer outside this state for purposes of safekeeping or for the convenient operation of the insurer.

This bill would allow securities of an insurer to be segregated or commingled with securities owned by other insurers if the arrangement is approved by the Commissioner of the Department of Insurance.

This bill would allow a domestic insurer to invest in securities or other investments located in countries other than the United States or Canada.

This bill would limit investments or loans relating to an insurer's admitted assets.

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Subjects

Insurance