HB36 Alabama 2015 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2015

Title

Insurance Department, regulation of insurance companies, provision for Own Risk Management Assessments (ORSA) with Commissioner of Insurance, confidentially under certain conditions, Secs. 27-29A-1 to 27-29A-10 added

Summary

HB36 would require Alabama-domiciled insurers to maintain a risk management framework and perform an Own Risk and Solvency Assessment (ORSA), with confidential ORSA Summary Reports filed with the Insurance Commissioner under a NAIC model act.

What This Bill Does

It adds a new Chapter 29A to Title 27 to set rules for risk management and ORSA. Insurers must conduct an ORSA at least annually (and when significant risk changes occur) and file a confidential ORSA Summary Report with the Commissioner upon request. The bill adopts a framework similar to the NAIC's ORSA Guidance Manual. It also includes confidentiality protections for ORSA materials and provides exemptions based on size; penalties for late filing; and provisions for sharing data with regulators.

Who It Affects

• Insurers domiciled in Alabama and their insurance groups: must implement a risk management framework, perform an ORSA, and submit ORSA Summary Reports (subject to exemptions).
• Regulators and oversight entities (Alabama Department of Insurance, NAIC, other state/federal regulators, and third-party consultants): will have access to ORSA information under strict confidentiality and may share under written agreements.

Key Provisions

• Risk management framework and ORSA requirement: Insurers must maintain a risk management framework and conduct an ORSA, with an ORSA Summary Report filed with the Commissioner, using the ORSA Guidance Manual.
• Confidentiality, exemptions, and sharing: ORSA documents are confidential; provides exemptions for smaller insurers based on premium thresholds; allows waivers; permits sharing with NAIC/other regulators under written agreements; requires agreements to protect confidentiality and limit storage; penalties for late filing.

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