HB85 Alabama 2016 Session

Summary

Primary Sponsor

Ken Johnson

Republican

Session

Regular Session 2016

Title

Insurance Department and life insurance companies, Standard Nonforfeiture Law, reserves, Standard Valuation Law, Secs. 27-15-70 to 27-15-83, inclusive, 27-36A-1 to 27-36A-20, inclusive; Secs. 27-15-28, 27-36-7 repealed

Description

Under existing law, certain life insurance policies are required to contain provisions providing an appropriate minimum cash value.

This bill would revise the Standard Nonforfeiture Law for Life Insurance to provide consistent minimum cash value requirements for various new life insurance products; to provide a more appropriate allowance for acquisition expenses; to remove the exemption for group life insurance products; and to provide for an effective date.

Under existing law, the reserves of life insurance companies are determined according to the Standard Valuation Law.

This bill would provide further for the regulation of life insurance by amending the Standard Valuation Law to make Alabama's law substantially similar to the current version of the model Standard Valuation Law developed by the National Association of Insurance Commissioners.

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Subjects

Insurance