SB498 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Mark Slade Blackwell
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: SB498 extends the company action level event trigger to property and casualty insurers based on risk-based capital levels and makes minor corrections to the law.
What This Bill Does
The bill requires property and casualty insurers to be subject to a company action level event if their risk-based capital (RBC) indicates certain levels. If such an event occurs, the insurer must submit an RBC plan within 45 days outlining causes, corrective actions, and five-year financial projections with and without those actions. The plan may be reviewed by the commissioner, who can deem it unsatisfactory and require revisions, and may ultimately declare a regulatory action level event. The measure also fixes a citation error and adds non-substantive clarifications.

Who It Affects
Property and casualty insurers operating in Alabama would be subject to company action level events based on their RBC, and must file RBC plans with the commissioner and, if applicable, with other states.
The Alabama Insurance Department (the commissioner) would oversee RBC reporting, adjust RBC calculations if needed, review RBC plans, and determine whether actions or regulatory events are warranted.

Key Provisions
Property and casualty insurers are brought under the company action level event framework, with specific RBC threshold criteria that can trigger the event.
An insurer with a company action level event must file an RBC plan within 45 days, detailing contributing conditions, proposed corrective actions, and five-year financial projections under both with- and without-action scenarios.
The RBC plan must include key assumptions, risk factors, and analysis of business quality and capital needs, and may be revised if the commissioner requires changes.
The commissioner may determine an RBC plan unsatisfactory or declare a regulatory action level event based on the plan or adjusted RBC reports, potentially triggering further regulatory actions.
The bill corrects a citation error and includes clarifying non-substantive changes.

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