HB354 Alabama 2020 Session

Summary

Primary Sponsor

Kerry Rich

Republican

Session

Regular Session 2020

Title

Insurance, to provide for opinion of appointed actuary, to permit an insurer to apply for an exception for annual actuarial opinion requirement, Sec. 27-3-26.1 am'd.

Summary

HB354 would let Alabama property and casualty insurers use an appointed actuary for loss reserve opinions and allow NAIC-based exemptions from the annual actuarial opinion filing.

What This Bill Does

The bill allows the required actuarial opinion to come from an appointed actuary rather than solely a qualified independent loss reserve specialist. It also authorizes insurers to apply to their domiciliary commissioner for exemptions from the annual actuarial opinion filing requirement, following NAIC instructions. The filing must be done in accordance with NAIC annual statement instructions, and the act defines relevant terms and the regulator's role.

Who It Affects

• Property and casualty insurers operating in Alabama, who may use an appointed actuary's opinion and may seek exemptions from the annual actuarial opinion filing.
• Actuaries (appointed actuaries and qualified independent loss reserve specialists) and state regulators, as the bill defines roles, requirements, and exemption processes.

Key Provisions

• Allows an appointed actuary's opinion to satisfy the requirement for an actuarial opinion on loss and loss adjustment expense reserves, instead of exclusively a qualified independent loss reserve specialist opinion.
• Authorizes insurers to apply for exemptions from the annual actuarial opinion filing requirement, in line with NAIC annual statement instructions and any changes to those instructions.
• Requires the insurer to file a Statement of Actuarial Opinion with the appropriate NAIC instructions, and defines the roles of appointed actuary and qualified independent loss reserve specialist (including eligibility criteria).
• Defines 'domiciliary commissioner' and clarifies the effective process for exemptions and the regulator’s involvement; establishes when the act takes effect (first day of the third month after passage and governor approval).

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance