HB94 Alabama 2017 Session

Summary

Primary Sponsor

Kerry Rich

Republican

Session

Regular Session 2017

Title

Insurance Dept. Risk-Based Capital Act, information obtained privileged, Holding Company System Regulatory Act, exception for enterprise reports deleted, Commissioner authorized to share information with NAIC, legal authority for group-wide supervisor for international insurance groups, Sec. 27-29-6.2 added; Secs. 27-2B-9, 27-29-1, 27-29-4, 27-29-7 am'd.

Summary

HB94 strengthens confidentiality around risk-based capital information, expands sharing with regulators and NAIC, removes the ERP filing exception, and creates a framework for group-wide supervision of internationally active insurers.

What This Bill Does

It keeps RBC reports and related information confidential and shields individuals from private lawsuits regarding these materials; it allows sharing with other regulators, the NAIC, and law enforcement, and requires that information remain confidential under source jurisdiction laws; information-sharing agreements are allowed. It removes the exception that allowed ultimate controlling persons to skip filing an annual enterprise risk report, making ERP filing mandatory for insurers subject to registration. It clarifies that confidential documents can be shared with the NAIC and its affiliates under certain circumstances and can be received from NAIC and other jurisdictions, while preserving confidentiality and privilege. It adds Section 27-29-6.2 giving the commissioner authority to act as group-wide supervisor for internationally active groups or to acknowledge another regulator, and it lays out the factors, procedures, and powers for group-wide supervision, including coordination with other regulators and cost provisions.

Who It Affects

• Insurers and their ultimate controlling persons in Alabama's insurance holding company systems: must file annual enterprise risk reports and have confidential information shared under strict rules; may be subject to group-wide supervision, if applicable.
• Alabama Insurance Department, NAIC and other regulators (including foreign regulators) and the insurers' affiliates: gain clearer authority to share and receive confidential information, coordinate supervision, and potentially oversee group-wide supervision of internationally active groups.

Key Provisions

• Keeps RBC reports, RBC plans, and related information confidential; prohibits testimony in private civil actions about these materials; allows sharing with regulators, NAIC, and law enforcement; maintains confidentiality under source laws.
• Allows the commissioner to share confidential and privileged documents with the NAIC and its affiliates and to receive documents from the NAIC and other jurisdictions while preserving confidentiality; authorizes information-sharing agreements.
• Eliminates the exception allowing ultimate controlling persons of insurers in the holding company system to avoid filing annual enterprise risk reports; ERP filing becomes mandatory.
• Explicitly authorizes the commissioner to act as group-wide supervisor for internationally active insurance groups (or acknowledge another regulator as group-wide supervisor) based on defined factors.
• Defines and governs group-wide supervision powers, including assessing enterprise risks, collecting information, coordinating with other regulators, and entering into agreements to clarify the supervisor's role; requires costs to be covered by registered insurers.
• Establishes cooperation and information-sharing protocols with supervisory colleges and other regulators to ensure coordinated group-wide supervision while protecting confidentiality.

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