SB300 Alabama 2013 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2013

Title

Insurance, Title 27, certain sections, repealed

Summary

SB300 repeals portions of the Alabama Insurance Code that govern how insurer deposits and related assets are handled by state offices.

What This Bill Does

It repeals sections 27-6-4 through 27-6-13, which previously set up deposits with the State Treasurer and the Insurance Commissioner, and the related safekeeping rules. As a result, the current framework for depositing, safekeeping, valuing, transferring, and potentially selling insurer assets held by the state would be removed. The rest of the Alabama Insurance Code outside these sections would remain in effect, and the changes would take effect immediately after the Governor signs the bill.

Who It Affects

• Insurance companies and surety insurers: the state-deposit and safekeeping requirements and related procedures would be repealed, affecting how their assets and deposits are handled.
• State government offices (State Treasurer and Insurance Commissioner) and related processes: the official roles and duties established by these sections would be removed.

Key Provisions

• Repeal of sections 27-6-4 through 27-6-13 of the Code of Alabama 1975, eliminating the established deposit, safekeeping, record-keeping, valuation, and transfer framework for insurer deposits.
• Removal of the State Treasurer's custodian role, safekeeping arrangements, and mandatory handling of deposits under these sections, along with related authority to accept, substitute, or release assets only under specified conditions.
• Elimination of provisions governing assignment or transfer of deposited securities and assets to the commissioner, appraisal of assets, and the use of powers of attorney for these assets.
• Abolition of procedures that allow the commissioner to sell deposited assets to pay judgments or to absorb solvency fluctuations, including related repayment and insolvency rules.
• Effective date: the repeals take effect immediately following passage and approval by the Governor.

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