HB65 Alabama 2016 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2016

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

HB65 would require Alabama-domiciled insurers to establish a risk management framework, perform an Own Risk and Solvency Assessment (ORSA), and file a confidential ORSA Summary Report with the Insurance Commissioner, with some small-insurer exemptions and strong confidentiality protections.

What This Bill Does

It requires insurers to maintain a risk management framework and conduct an ORSA at least annually (and when risk exposure changes) and to file an ORSA Summary Report with the Commissioner. It adopts a model act similar to the NAIC's Risk Management and ORSA Model Act and sets strong confidentiality rules for ORSA data, including limits on public disclosure and specific sharing rules. It also creates exemptions for small insurers based on premium size, provides a waiver process, and imposes penalties for late filing while allowing hardship relief.

Who It Affects

• Insurers domiciled in Alabama (and their insurance groups) — must implement a risk management framework, perform an ORSA, and file ORSA Summary Reports as requested (with possible exemptions for small insurers).
• The Alabama Department of Insurance, other regulators, the NAIC, and the insurers’ boards or risk officers — affected by confidentiality rules, data sharing provisions, and the need to sign attestations and provide reports.

Key Provisions

• Adds Chapter 29A to Title 27 to require risk management framework, ORSA, and ORSA Summary Report filing; defines ORSA, ORSA Summary Report, and ORSA Guidance Manual.
• Insurers must conduct an ORSA no less than annually or when there are significant changes in risk, and file an ORSA Summary Report upon request (limited to once per year).
• ORSA documents and summaries are confidential and privileged; cannot be public records and can only be shared under written confidentiality agreements with regulators and NAIC or third-party consultants.
• Provides exemptions for small insurers: those with direct written and unaffiliated premium under $500 million (and groups under $1 billion) may be exempt; coordination with lead state regulators; waivers possible for unique circumstances.
• Penalties of $100 per day (up to $10,000) for failure to file on time, with possible reduction for financial hardship; penalties go to the state Insurance Department Fund.
• Operative date: first ORSA Summary Report filing required in 2016.

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