House Bill 415 Alabama 2026 Session

Summary

Primary Sponsor

Corley EllisRepresentative

Republican

Session

2026 Regular Session

Title

Department of Insurance; additional requirements for captive insurers specified

Description

Under existing law, the Alabama Captive Insurers Act establishes certain requirements for forming captive insurers in this state.

This bill would specifically require captive insurers to arrange with a bank located in this state to transfer money, to contract with a person or business organization approved by the commissioner to manage its affairs and to place certain requirements on the captive manager, to employ or contract with a certified public accountant approved by the commissioner, to employ or contract with an actuary approved by the commissioner, to submit biographical background information for each director and officer and for each person controlling 10 percent or more of the captive insurer, to submit a detailed plan of operation and feasibility study, to submit a statement disclosing the identity and percentage of ownership of all persons controlling 10 percent or more of the captive insurer, to submit evidence of its beneficial ownership, sponsorship, or membership, to submit any other factors or information deemed relevant by the commissioner, and to require notice of any subsequent material change in any of the items required to be submitted.

HB415 INTRODUCED Under existing law, there are minimum capital requirements for captive insurance companies and a minimum amount for premium taxes.

This bill would increase the minimum capital requirements for certain captive insurers and would increase the minimum amount to be paid by captive insurers for premium taxes.

Under existing law, before approving an application of a captive insurer for license, the commissioner must find that the proposed captive insurer will promote the general good of the state.

This bill would require the commissioner to take into consideration the competence of the captive manager and legal counsel of the captive insurer and to consider the company's business plan when determining whether the company will promote the general good of the state.

This bill would also require licensed captive insurers to annually file an audited financial statement and an actuarial certification of loss reserves and loss expense reserves.

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Subjects

Insurance