HB567 Alabama 2012 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2012

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

HB567 extends Alabama's company action level RBC framework to property and casualty insurers, requiring corrective plans when RBC levels trigger regulatory actions.

What This Bill Does

The bill would make property and casualty insurers subject to a company action level event if their risk-based capital (RBC) report indicates certain levels. It requires insurers to file an RBC plan within 45 days of such an event, detailing conditions, proposed corrective actions, and five-year financial projections. The plan is reviewed by the Insurance Commissioner, who can deem it unsatisfactory and require revisions, potentially leading to regulatory action. The bill also updates RBC definitions and reporting rules, including adjusted RBC reports and cross-state filing requirements, with immediate effect after passage.

Who It Affects

• Domestic property and casualty insurers licensed to do business in Alabama: could face a company action level event based on RBC, must file an RBC plan, and implement corrective actions.
• Alabama Insurance Commissioner and Department: gains authority to adjust RBC reports, review and approve or reject RBC plans, and impose regulatory actions if plans are unsatisfactory or not followed.

Key Provisions

• Adds property and casualty insurers to be subject to a company action level event when their risk-based capital (RBC) report indicates specified levels.
• Requires the insurer to file an RBC plan within 45 days of the event, including conditions, proposed corrective actions, five-year financial projections, key assumptions, and risk factors.
• Authorizes the Commissioner to review, approve, modify, or reject the RBC plan; if unsatisfactory, require revisions and may designate a regulatory action level event.
• Clarifies RBC-related definitions and reporting procedures, including adjusted RBC reports and filing requirements in other states with similar RBC provisions, with immediate effective date upon 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