SB151 Alabama 2015 Session

Summary

Primary Sponsor

Mark Slade Blackwell

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

SB151 would require Alabama-domiciled insurers to maintain a risk management framework, perform an Own Risk and Solvency Assessment (ORSA), and file a confidential ORSA Summary Report with the Commissioner of Insurance.

What This Bill Does

Insurers must maintain a risk management framework and conduct an ORSA at least annually or when their risk profile changes, following the NAIC ORSA Guidance Manual. They must file an ORSA Summary Report with the Commissioner upon request (first filing in 2016), with a signature from the chief risk officer and a statement that the board has reviewed it; the report can reference other regulator reports when appropriate. ORSA-related documents are confidential and privileged; they may be shared with NAIC and other regulators under written agreements and are not public records. Small insurers may be exempt from these requirements based on premium thresholds, though the commissioner can impose requirements in unique circumstances, and there are penalties for late filing.

Who It Affects

• Insurers domiciled in Alabama (and their insurance groups) would be required to implement a risk management framework, perform ORSAs, and file ORSA Summary Reports, with possible exemptions based on premium size.
• The Alabama Department of Insurance, along with NAIC, other state and international regulators, and third-party consultants involved in supervisory activities, would handle, review, share, and protect confidential ORSA information.

Key Provisions

• Adds Chapter 29A to Title 27 establishing risk management and ORSA requirements for Alabama-domiciled insurers.
• Insurers must maintain a risk management framework and conduct an ORSA at least annually or when the risk profile changes, using the ORSA Guidance Manual as reference.
• An ORSA Summary Report must be filed with the Commissioner upon request (first filing in 2016), signed by the insurer's chief risk officer, and may reference reports from other regulators; English translations required if using another language.
• Exemptions are available for small insurers based on premium thresholds (≤$500 million for insurer direct written and unaffiliated assumed premium; ≤$1 billion for the insurance group), with waivers and coordination with lead state regulators possible; exemptions can be overridden for unique circumstances.
• ORSA-related documents and information are confidential and privileged; sharing with NAIC and other regulators is allowed under written agreements; not subject to public records; the commissioner maintains control and oversight of the information.
• Penalties for failing to timely file the ORSA Summary Report: $100 per day up to $10,000, with possible reductions for hardship; first filing date set for 2016; the act becomes effective January 1, 2016.
• Any laws conflicting with SB151 are repealed by this act.

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