SB26 Alabama 2021 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Shay ShelnuttSenator
Republican
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: SB26 amends Alabama insurance law to require an appointed actuary's opinion on loss reserves for property and casualty insurers and to allow exemptions under NAIC rules.
What This Bill Does
Requires every property or casualty insurer filing an annual statement in Alabama to include an opinion on loss and loss adjustment expense reserves from an appointed actuary, submitted in accordance with NAIC annual statement instructions. Defines a 'qualified independent loss reserve specialist' as an independent reviewer not affiliated with the insurer, who is a CAS member or otherwise approved by the commissioner to provide the actuarial opinion. Allows insurers to apply for an exemption from this requirement through their domiciliary commissioner, as permitted by NAIC instructions. Specifies that the 'domiciliary commissioner' is the chief insurance regulator of the insurer's home state.

Who It Affects
Property and casualty insurers that operate in Alabama and file annual statements, by requiring an additional actuarial opinion on reserves (unless exempted).
Independent loss reserve specialists / appointed actuaries and state insurance regulators (domiciliary commissioners) who oversee exemptions and ensure the opinion meets the rules.

Key Provisions
Adds requirement for an annual actuarial opinion on loss and loss adjustment expense reserves by an appointed actuary, filed with the insurer's NAIC-based annual statement.
Establishes qualifications for the actuary (qualified independent loss reserve specialist) and requires independence from the insurer.
Allows exemption from the requirement via the domiciliary commissioner according to NAIC instructions.
Defines 'domiciliary commissioner' as the chief insurance regulator of the insurer's domicile and sets the effective date as the first day of the third month following enactment.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Insurance