Bill > SB207

This bill, concerning captive insurance companies in Alabama, primarily aims to increase the minimum paid-in capital and surplus requirements for various types of captive insurers and introduces new reporting and operational requirements. Specifically, it raises the minimum capital for pure captive insurance companies and reinsurance captive insurance companies from $100,000 and $10,000 respectively to $250,000, and establishes a new minimum of $1,000,000 for risk retention groups. The bill also mandates that captive insurers employ or contract with a qualified captive manager, a certified public accountant, and actuaries, and requires them to submit detailed operational plans and feasibility studies to the commissioner. Furthermore, it introduces new annual reporting requirements, including an audited financial statement prepared in accordance with generally accepted accounting principles (GAAP) and an actuarial certification of loss reserves, with specific effective dates for these changes.

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