HB34 Alabama 2021 Session

Summary

Primary Sponsor

Kerry Rich

Republican

Co-Sponsor

Corley Ellis

Session

Regular Session 2021

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

HB34 would allow property and casualty insurers to use an appointed actuary for actuarial opinions and let them apply for exemptions from the annual opinion filing requirement under NAIC rules.

What This Bill Does

The bill updates the required actuarial opinion to come from an appointed actuary instead of the existing independent loss reserve specialist framework, following NAIC annual statement instructions. It also lets insurers seek an exemption from the annual actuarial opinion filing, with approval from their domiciliary (home) commissioner and based on NAIC instructions. The act defines key terms (domiciliary commissioner and qualified independent loss reserve specialist) and sets when the bill becomes effective.

Who It Affects

• Property or casualty insurers operating in Alabama: must include an appointed actuary's opinion in their annual statement and may apply for exemptions from the annual actuarial opinion requirement under NAIC rules.
• Alabama's regulatory framework (domiciliary commissioner and insurers' home regulators): will oversee and approve exemptions under the NAIC instructions.

Key Provisions

• Amends Section 27-3-26.1 to require the annual actuarial opinion to be the opinion of an appointed actuary (per NAIC instructions) instead of relying solely on a qualified independent loss reserve specialist.
• Allows an insurer to apply for an exemption from the annual actuarial opinion filing requirement through its domiciliary commissioner, in line with NAIC annual statement instructions.
• Defines terms such as 'domiciliary commissioner' and 'qualified independent loss reserve specialist' to clarify who is involved and how opinions are obtained.
• Establishes that the act becomes effective on the first day of the third month after its passage and governor's 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