SB52 Alabama 2019 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

Republican

Session

Regular Session 2019

Title

Insurance companies, corporate governance, required to provide Commissioner of Insurance annually, insurance holding company systems, definition of internationally active insurance groups, confidentially, Corporate Governance Model Act enacted, Secs. 27-29B-1 to 27-29B-9, inclusive, added; Secs. 27-29-1, 27-29-7 am'd.

Summary

SB 52 creates an annual Corporate Governance Disclosure requirement for Alabama-domiciled insurers, with strong confidentiality protections, and adds group-wide supervision rules for internationally active insurance groups.

What This Bill Does

It requires insurers domiciled in Alabama to file a Corporate Governance Annual Disclosure (CGAD) each year by June 1, describing their governance structure and practices, and may be submitted at the level of the ultimate parent, intermediate holding company, or individual entity. The CGAD must be signed by the insurer’s CEO or corporate secretary and aligned with NAIC guidance, with information shared through the lead state for group supervision. The act also defines internationally active insurance groups and sets confidentiality rules for CGADs and group-wide supervision documents, allowing restricted sharing with the NAIC and other regulators or third-party consultants under written confidentiality agreements.

Who It Affects

• Insurers domiciled in Alabama: must file the CGAD annually, sign the disclosure, and may face penalties for late filing.
• Insurance holding company systems and internationally active groups: may coordinate group-wide supervision across states, submit CGADs at an appropriate reporting level, and have confidential treatment for CGADs and related group-wide supervision documents.

Key Provisions

• creates Chapter 29B (Corporate Governance Annual Disclosure Act) requiring CGADs by June 1 each year; filing may be to the lead state for the group per NAIC rules.
• defines CGAD, Insurance Group, Internationally Active Insurance Group, and related terms; expands confidentiality for group-wide supervision documents.
• requires CGAD content to be sufficient for the commissioner to understand governance while allowing reporting at the ultimate parent, intermediate holding company, or entity level, with an explanation of the reporting level used and any changes.
• mandates that CGADs follow NAIC model rules and allows the commissioner to request additional material; supports cross-referencing existing filings to avoid duplication.
• establishes strict confidentiality and privilege for CGAD materials, with protections against open records requests and subpoenas, and authorizes limited sharing with regulators, NAIC, and third-party consultants under confidentiality agreements.
• outlines rules for NAIC and third-party consultants, including conflict checks, confidentiality, ownership of information, notice requirements, and insurer intervention rights in disclosures.
• imposes penalties for late CGAD filing (up to $1,000 per day, max $100,000), with possible hardship waivers, and requires penalties to go to the State General Fund.
• amends Sections 27-29-1 and 27-29-7 to include definitions and confidentiality protections for internationally active insurance groups and group-wide supervision documents.

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