SB10 Summary

• Amends Section 27-10-26 of the Code of Alabama 1975 regarding surplus line insurance eligibility requirements for foreign and alien insurers.

• Allows foreign and alien insurers that have transacted insurance in their state or country of domicile for less than five years to place surplus line insurance in Alabama by making a special deposit with the state, providing an exception to the existing five-year requirement.

• Requires unauthorized insurers seeking to place insurance under this exception to deposit cash or securities with a market value of not less than $1,000,000 with the Department of Insurance, held for the benefit of Alabama policyholders only.

• Authorizes the Commissioner of Insurance to adopt reasonable rules for implementing and administering the deposit and placement provisions.

• Becomes effective immediately upon passage and approval by the Governor.