SB189 Alabama 2013 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Co-Sponsors

Rusty GloverMark Slade BlackwellVivian Davis FiguresGeorge M. “Marc” KeaheyDel Marsh

Session

Regular Session 2013

Title

Insurance, out-of-state insurers, investments, cash equivalents exempted from quality and diversity requirements, Sec. 27-41-39 am'd.

Summary

SB189 would exempt cash equivalents from the quality and diversity investment requirements for foreign and alien insurers operating in Alabama.

What This Bill Does

Under current law, foreign and alien insurers must have investments that are of quality and diversity substantially equivalent to domestic insurers. The bill creates an exception for cash equivalents, meaning these specific investments would not have to meet the quality and diversity rule. Cash equivalents are defined as investments with 90 days or less to maturity, highly rated by a nationally recognized rating organization recognized by the Commissioner of Insurance, highly liquid, readily convertible to cash without penalty, and with near-maturity risk of value change that is insignificant. The act would take effect immediately after passage and governor's approval.

Who It Affects

• Foreign or alien insurers authorized to transact insurance in Alabama — will be exempt from the quality and diversity investment requirements for cash equivalents.
• Domestic insurers and the Alabama Department of Insurance — continue to follow existing investment rules for other investments; will apply and oversee the new cash-equivalents exemption when appropriate.

Key Provisions

• Amends Section 27-41-39 to exempt cash equivalents from the quality and diversity limitations on investments for foreign and alien insurers.
• Defines 'cash equivalents' as investments with a maturity of 90 days or less, highly rated by a nationally recognized statistical rating organization recognized by the Commissioner of Insurance, highly liquid, readily convertible to known amounts of cash without penalty, and near maturity with insignificant risk of change in value.
• Specifies that cash equivalents are exempt from the limitations of this section.
• Effective date: becomes law immediately following passage and approval by the Governor, or otherwise becoming law.

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