SB149 Alabama 2015 Session

Summary

Primary Sponsor

Mark Slade Blackwell

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

SB149 creates a specialized unearned premium reserve for bail bond surety insurers, replacing the general reserve in this area and detailing how it is calculated and reported.

What This Bill Does

SB149 allows the Commissioner of Insurance to require bail bond surety insurers and limited insurers to establish a special unearned premium reserve for bail bonds, instead of the standard reserve used for other insurers. The reserve amount is the lesser of 35% of bail premiums in force or $7 per $1,000 of bail liability, and it must be reported as a liability in financial statements filed with the Commissioner, with a supplementary schedule showing bail premiums in force, bail liability, and the associated reserve (per Section 27-3-26). Bail premiums in force do not include amounts retained by licensed bail bond agents or licensed managing general agents, but must not be less than 6.5% of the total consideration for all bail bonds in force. Section 2 makes the act effective immediately after passage.

Who It Affects

• Bail bond surety insurers and limited insurers, who must establish this special reserve and report it with their financial statements.
• The Alabama Department of Insurance (Commissioner), which may require the reserve and will review the related financial statements and schedules.

Key Provisions

• Adds Section 27-36-3.1 to create a special unearned premium reserve for bail bonds and single-premium bonds without a definite expiration date.
• The reserve equals the lesser of 35% of bail premiums in force or $7 per $1,000 of bail liability and must be reported as a liability with a supplementary schedule for bail premiums in force, bail liability, and the reserve on financial statements per Section 27-3-26.
• 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.
• Section 2 provides immediate effectiveness upon passage.

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