SB126 Alabama 2013 Session

Summary

Primary Sponsor

Mark Slade Blackwell

Republican

Session

Regular Session 2013

Title

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

Summary

SB126 would raise the trigger for the RBC trend test for life/health insurers to 3.0 times the authorized control level and require property/casualty insurers to be subject to company action level events at defined RBC levels, along with related plan and correction processes.

What This Bill Does

The bill increases the level at which the RBC trend test could be required for life and health insurers from 2.5x to 3.0x the authorized control level RBC. It also extends a company action level framework to property and casualty insurers, so they could face regulatory action when their RBC levels reach specified thresholds. If a company action level event occurs, insurers must file an RBC plan with corrective actions and projections, and the regulator will review and enforce the plan within set timelines; the bill also makes minor citation corrections and clarifying non-substantive changes.

Who It Affects

• Life and health insurers operating in Alabama, who would now face the RBC trend test at a higher threshold (3.0 times the authorized control level RBC) before triggering certain regulatory actions.
• Property and casualty insurers operating in Alabama, who would be subject to a company action level event when their RBC indicates the specified levels (above the company action level RBC but below ACL × 3.0 with trend considerations) and must comply with RBC plan requirements.

Key Provisions

• Increase the life/health RBC trend test trigger from 2.5 times to 3.0 times the authorized control level RBC.
• Subject property and casualty insurers to a company action level event when their RBC indicates specified levels (above company action level RBC but below the product of ACL and 3.0, with a trend requirement).
• Require an RBC plan after a company action level event, including problem identification, proposed corrective actions, five-year financial projections, key assumptions, and risk factors, with deadlines to submit and for the regulator to approve or require revisions.
• Provide deadlines and procedures for filing and regulator review of RBC plans (e.g., 45 days to file after the event, 60 days for regulator decision, and process for revisions and potential regulatory action).
• Make correcting citations and other clarifying, nonsubstantive 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