SB169 Alabama 2016 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Mark Slade Blackwell
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Valuation Law, Secs. 27-15-70 to 27-15-83, inclusive, 27-36A-1 to 27-36A-20, inclusive; Secs. 27-15-28, 27-36-7 repealed
Summary: SB169 updates Alabama’s life insurance laws to align with the NAIC model, creating a new Standard Nonforfeiture Law and a Standard Valuation Law to modernize cash values and reserves.
What This Bill Does
It updates the Standard Nonforfeiture Law for Life Insurance to set consistent minimum cash values for new policies, adjusts the allowance for acquisition expenses, and removes the exemption for group life policies. It also repeals old provisions and sets an effective date for the changes. It creates a new Standard Valuation Law as Chapter 36A to align Alabama with the NAIC model for reserve valuation, including a valuation manual, new reserve methods for life, annuity and health contracts, and requirements for actuarial opinions. It also establishes confidentiality rules for the data and provides options for small companies and single state exemptions.

Who It Affects
Life insurance policyholders in Alabama, who would have more predictable and transparent minimum cash values and nonforfeiture benefits under updated rules (including group life being subject to these protections).
Life insurers operating in Alabama and the Alabama Department of Insurance, who must implement the new nonforfeiture and valuation framework, produce annual actuarial opinions, and manage confidential information while complying with new rules.

Key Provisions
Reenact and revise the Standard Nonforfeiture Law for Life Insurance to establish consistent minimum cash value requirements for new policies, adjust acquisition expense allowances, and remove the group life exemption, with an operative date.
Add Chapter 36A Standard Valuation Law to align Alabama with the NAIC model, setting up a valuation manual, standard reserve methods for life, annuity, and health contracts, requiring actuarial opinions, confidentiality protections, and optional exemptions for small companies and single-state product lines.

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