HB270 Alabama 2016 Session

Under existing law, captive insurance companies are licensed and regulated by the Alabama Department of Insurance

This bill would: revise the licensure requirements of captive insurance companies; allow risk retention groups to operate as captive insurance companies; allow captive insurance companies to be formed as a series limited liability corporation; allow for a 60-day provisional license of a captive insurance company in certain circumstances; alter the initial capital requirements needed to form a captive insurance company; and cap the premium tax at $100,000 and would no longer require a premium tax until a captive insurance company is licensed for 12 months

This bill would also provide for the governance and taxation of protected cell captive insurance companies

Relating to captive insurance companies; to amend Sections 27-31B-2, 27-31B-3, 27-31B-6, 27-31B-8, 27-31B-9, 27-31B-12, 27-31B-16, 27-31B-19, 27-31B-20, 27-31B-22, and 27-31B-24; to add Section 27-31B-25 to, and to repeal Section 27-31B-23 of the Code of Alabama 1975; to revise the licensure requirements of captive insurance companies; to allow risk retention groups to operate as captive insurance companies; to allow captive insurance companies to be formed as a series limited liability corporation; to allow for a 60-day provisional license of a captive insurance company in certain circumstances; to alter the initial capital requirements needed to form a captive insurance company; to cap the premium tax of captive insurance companies and no longer require a premium tax until a captive insurance company is licensed for onths; and to provide for the governance and taxation of protected cell captive insurance companies.