SB351 Alabama 2013 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2013

Title

Insurance, Title 27, certain sections, repealed

Summary

SB351 repeals portions of Alabama's Insurance Code that govern reinsurance intermediaries and intermediary-managers.

What This Bill Does

The bill repeals sections 27-5A-4 through 27-5A-7, which previously required written authorizations, detailed accounting, fiduciary handling of funds, long-term recordkeeping, licensing rules, and contract procedures for reinsurance intermediaries and managers. Because those provisions are repealed, the specific regulatory requirements for these entities would no longer apply. The repeal takes effect immediately after the bill becomes law.

Who It Affects

• Reinsurance intermediary-brokers: would no longer be required to operate under written authorizations with insurers, maintain detailed accounts or fiduciary funds, or keep certain records for 10 years.
• Insurers and reinsurers: would no longer be bound by the repealed requirements when engaging with intermediaries or intermediary-managers, potentially reducing regulatory obligations in these areas.

Key Provisions

• 27-5A-4 (repealed): Required a written authorization between a reinsurance intermediary-broker and the insurer it represents, including duties such as termination rights, detailed accounting, fiduciary funds, compliance with other standards, and disclosure of relationships with reinsurers.
• 27-5A-5 (repealed): Required the intermediary-broker to keep complete records for at least 10 years after expiration of each reinsurance contract, including contract terms, pricing, commissions, placement proof, and related correspondence.
• 27-5A-6 (repealed): Required insurers to license intermediaries, prohibit certain employment practices, and obtain annual financial statements of each intermediary-broker.
• 27-5A-7 (repealed): Required written contracts for reinsurance intermediary-managers, board approval, filing with the commissioner, and detailed accounting, fiduciary practices, and 10-year records.

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