Bill > HB415

This bill, titled the Department of Insurance; additional requirements for captive insurers specified, proposes several amendments to Alabama law concerning captive insurance companies, which are essentially insurance companies formed to insure the risks of their parent companies or affiliated groups. Key provisions include requiring captive insurers to maintain a financial account with an Alabama-approved financial institution, mandating the employment of a qualified captive manager and an independent certified public accountant and actuary, and requiring the submission of detailed operational plans, financial statements, and feasibility studies to the commissioner of insurance. The bill also increases the minimum capital and surplus requirements for various types of captive insurers, including pure captive insurers and protected cell captive insurers, and introduces new requirements for risk retention groups. Furthermore, it clarifies the formation processes for different captive structures and enhances the information that must be considered by the commissioner when approving their establishment, such as the competence of management and legal counsel, and the company's business plan. Finally, the bill mandates annual audited financial statements prepared using generally accepted accounting principles and an annual actuarial certification of loss reserves.

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