SB170 Alabama 2016 Session

Summary

Primary Sponsor

Mark Slade Blackwell

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

SB170 requires Alabama-domiciled insurers to have a risk management framework and perform an Own Risk and Solvency Assessment (ORSA), with a confidential ORSA Summary Report filed with the Commissioner of Insurance.

What This Bill Does

It mandates insurers to maintain a risk management framework and conduct an ORSA at least annually or when their risk profile changes. It requires the insurer to submit an ORSA Summary Report to the Commissioner upon request, and allows for group-level reporting when the insurer is part of a larger insurance group. It establishes strict confidentiality for ORSA documents and limits sharing to regulators, the NAIC, and approved third-party consultants under written agreements. It also provides premium-based exemptions, possible waivers, and penalties for late filings.

Who It Affects

• Alabama-domiciled insurers and their insurance groups: must implement a risk management framework, conduct an ORSA, and file an ORSA Summary Report (subject to exemptions) with the Commissioner.
• The Alabama Department of Insurance, the NAIC, other state and international regulators, and approved third-party consultants: may receive and use ORSA-related information under confidentiality and privilege protections, and oversee compliance and enforcement.

Key Provisions

• Adds Chapter 29A to Title 27 establishing requirements for a risk management framework and an Own Risk and Solvency Assessment (ORSA) for Alabama-domiciled insurers, with an ORSA Summary Report filed with the Commissioner.
• Insurers must maintain a risk management framework and conduct an ORSA no less than annually, and also whenever there are significant changes to their risk profile.
• ORSA Summary Report is confidential and not subject to public disclosure; it may be shared with the NAIC and other regulators under written confidentiality agreements, and with approved third-party consultants.
• Exemptions are provided for certain small insurers and groups based on premium thresholds; waivers and potential regulator-imposed requirements can apply in unique circumstances.
• Penalties for late ORSA Summary Report filing: up to $100 per day, maximum $10,000, with potential reductions for financial hardship.
• First ORSA Summary Report filing is required in 2016, with the operative date January 1 following enactment; the act supersedes conflicting laws.

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