HB417 Summary

• Exempts certain officers, directors, committee members, and employees of domestic insurers from pecuniary interest prohibitions when charged with investing or handling insurer funds, including holdings in stocks, mutual funds, bonds, and international development organization securities.

• Requires domestic insurers to maintain assets in financial institutions conducting business in Alabama, with exceptions for real property outside the state and deposits outside Alabama for safekeeping or convenient operations.

• Allows insurers to use custodial arrangements for holding securities either segregated or commingled with other insurers' securities, subject to commissioner-approved rules for asset safeguarding and examination.

• Permits domestic insurers to invest in securities and investments located in countries other than the United States or Canada, with specific percentage limitations based on the foreign jurisdiction's sovereign debt rating (ranging from 2-20 percent of admitted assets).

• Limits single investments or loans exceeding 10 percent of admitted assets to those authorized, approved, or ratified by the board of directors or an expressly designated committee.