SB337 Alabama 2013 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2013

Title

Insurance, Title 27, certain sections, repealed

Summary

SB337 would repeal several deposit and trust requirements for insurers under Alabama's insurance code.

What This Bill Does

It repeals Sections 27-3-12 through 27-3-16, removing rules that required certain insurers to deposit cash or securities in trust and to use trustees in Alabama. This affects surety insurers, foreign, domestic, and alien title insurers, and Lloyd's-style underwriters by eliminating those deposit and protection rules. The change would take effect immediately after passage.

Who It Affects

• Foreign title insurers, domestic title insurers, alien insurers, surety insurers, and Lloyd's underwriters operating in Alabama would no longer be required to maintain the designated deposits or trust arrangements.
• Policyholders and creditors in Alabama would no longer have the state-imposed deposit protections tied to these insurers.

Key Provisions

• Repeals Sections 27-3-12 to 27-3-16 of Title 27 (insurance code).
• Eliminates the special deposit and trust requirements for surety insurers, including deposits with the state Treasurer and related credit rules.
• Eliminates the deposit requirements for foreign, domestic, and alien title insurers, including required trust deposits and related oversight provisions.
• Abolishes the Lloyd's-type aggregation provisions that regulate underwriting by multiple underwriters in Alabama.
• Effective date: immediately after passage and the Governor's approval.

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