HB327 Summary

• Extends risk-based capital (RBC) company action level event requirements to property and casualty insurers, previously applicable only to life and health insurers.

• Property and casualty insurers trigger a company action level event when total adjusted capital falls below 3.0 times their authorized control level RBC and they meet the trend test calculation specified in property and casualty RBC instructions.

• Corrects a citation error in Section 27-2B-2, changing subsection reference from "(c)" to "(e)" regarding adjusted RBC reports.

• Requires property and casualty insurers meeting company action level event criteria to prepare and submit a comprehensive RBC plan to the commissioner within 45 days, including identified conditions, corrective action proposals, and financial projections.

• Effective January 1, 2012, amending Sections 27-2B-2, 27-2B-3, and 27-2B-4 of the Code of Alabama 1975.