HB111 Alabama 2014 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2014

Title

Insurance Department, insurance holding companies, regulation further provided for, purpose to conform with National Association of Insurance Commissioners, model act, Secs. 10A-20-6.16, 27-21A-23, 27-29-1 to 27-29-7, inclusive, 27-29-10, 27-34-54 am'd.; Secs. 27-29-3.1, 27-29-6.1, 27-29-11.1 added

Summary

HB111 updates Alabama's insurance holding company rules to bolster oversight of enterprise risk, enhance review of acquisitions, enable cross-border supervision, and expand penalties and recovery rights; the changes take effect January 1, 2016.

What This Bill Does

It requires an enterprise risk assessment within insurance holding company systems; it creates public hearings for proposed acquisitions and gives the Commissioner of Insurance the power to approve or disapprove acquisitions after pre-notification. It authorizes the commissioner to participate in supervisory colleges with other regulators for domestic insurers that are part of international holding companies. It strengthens penalties for violations, expands recovery rights for receivers of domestic insurers, and updates confidentiality and information-sharing rules to support oversight.

Who It Affects

• Domestic insurers and their insurance holding company systems in Alabama would face new requirements for enterprise risk assessments, reporting, potential public hearings on acquisitions, and enhanced governance and dividend oversight.
• Persons or entities seeking to acquire control of a domestic insurer (controlling persons, parent companies, and their affiliates) would face mandatory pre-acquisition notification, potential commissioner approval or disapproval, and new disclosure and reporting obligations, along with penalties for noncompliance.

Key Provisions

• Requires an enterprise risk assessment within the insurance holding company system to identify material risks that could affect the insurer's financial condition or liquidity.
• Adds a pre-acquisition notification requirement and public hearing process, giving the commissioner authority to approve or disapprove mergers or acquisitions of control.
• Authorizes participation in supervisory colleges with other regulators for insurers with international operations, including cost-sharing and crisis-management planning.
• Strengthens penalties for violations, expands the receiver's ability to recover certain distributions, and updates information-sharing and confidentiality provisions to support regulatory oversight.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance