HB35 Alabama 2015 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2015

Title

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

Summary

HB35 creates a new bail bond reserve (27-36-3.1) that the Insurance Commissioner may require of bail bond insurers, as an alternative to the standard unearned premium reserve.

What This Bill Does

The Insurance Commissioner may require any bail bond surety insurer or limited insurer to set up and maintain a reserve on all bail bonds or other single-premium bonds without a definite expiration date, equal to the lesser of 35% of bail premiums in force or $7 per $1,000 of bail liability. This reserve must be reported as a liability in the insurer's financial statements filed with the Commissioner, and a supplementary schedule showing bail premiums in force, bail liability, and the reserve must be filed with the financial statements. 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 the total consideration received for all bail bonds in force. The act takes effect immediately after the Governor signs it or it becomes law.

Who It Affects

• Bail bond surety insurers and limited insurers would be required to set up and maintain a special reserve for bail bonds (and other single-premium bonds) and report it as a liability on their financial statements.
• Licensed bail bond agents and licensed managing general agents because amounts they retain are excluded from the 'bail premiums in force' calculation, which affects how the reserve base is determined.

Key Provisions

• Adds Section 27-36-3.1 creating an alternative reserve rule for bail bonds in lieu of the standard unearned premium reserve.
• The Commissioner may require 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 in financial statements and paired with a supplementary schedule showing bail premiums in force, bail liability, and the reserve.
• Bail premiums in force exclude amounts retained by licensed bail bond agents or licensed MGAs, but must be at least 6.5% of total consideration for all bail bonds in force.
• Effective immediately after the Governor's approval or the law's enactment.

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