HB477 Alabama 2014 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2014

Title

Bail bond surety insurers, regulation by Insurance Department, amount of unearned premium reserve specific required, Sec. 27-36-3.1 added

Summary

HB477 creates a specific bail-bond unearned premium reserve for bail bond insurers, replacing the general reserve with a defined calculation and reporting requirements.

What This Bill Does

The Insurance Commissioner can require bail bond or limited insurers to establish a special reserve for bail bonds, instead of the standard unearned premium reserve. The reserve is the lesser of 35% of bail premiums in force or $7 per $1,000 of bail liability, and must be reported as a liability in financial statements, with a supplementary schedule detailing bail premiums in force, bail liability, and the reserve. Bail premiums in force exclude amounts retained by licensed bail bond agents or managing general agents, but must be at least 6.5% of the total consideration for all bail bonds in force.

Who It Affects

• Bail bond surety insurers (and limited insurers) operating in Alabama, who must establish and report the new bail-bond reserve and related schedules.
• The Alabama Insurance Commissioner/Department, which will oversee and enforce the new reserve requirements and review the financial statements.

Key Provisions

• Adds Section 27-36-3.1 to provide an alternative bail-bond unearned premium reserve in lieu of the general reserve.
• Requires a reserve equal to the lesser of 35% of bail premiums in force or $7 per $1,000 of bail liability.
• The reserve must be reported as a liability on financial statements filed with the Commissioner; insurers must file a supplementary schedule showing bail premiums in force, bail liability, and the reserve.
• Bail premiums in force do not include amounts retained by licensed bail bond agents or licensed managing general agents, but must be at least 6.5% of total consideration for all bail bonds in force.
• The act becomes effective immediately after the Governor signs it into law.
• This reserve is in lieu of the unearned premium reserve required by Section 27-36-3.

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