SB268 Summary

• Amends Alabama Code Sections 27-2B-2, 27-2B-3, and 27-2B-4 to extend risk-based capital (RBC) requirements to property and casualty insurers, previously applied only to life and health insurers.

• Property and casualty insurers become subject to company action level events when their risk-based capital report indicates total adjusted capital is greater than or equal to company action level RBC but less than the product of authorized control level RBC and 3.0, and triggers the trend test.

• Corrects a citation error in Section 27-2B-2(1) by changing "subsection (c)" to "subsection (e)" regarding adjusted RBC reports.

• Establishes that property and casualty insurers meeting the specified RBC thresholds must submit comprehensive RBC plans to the commissioner identifying contributing conditions and proposing corrective actions.

• Act becomes effective January 1, 2012, following passage and governor approval.