SB314 Summary

• Provides exemptions from pecuniary interest prohibitions for officers, directors, committee members, and employees of domestic insurers who invest or handle insurer funds, including holders of publicly traded stocks, mutual funds, bonds, and government 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 operational convenience.

• Allows insurer securities to be segregated or commingled with other insurers' securities if approved by the Insurance Commissioner and permits custodial arrangements for holding securities.

• Authorizes domestic insurers to invest in securities and investments issued in, located in, or denominated in currencies of countries other than the United States or Canada, subject to specified percentage limits based on sovereign debt ratings.

• Limits individual investments or loans exceeding 10 percent of admitted assets to those authorized, approved, or ratified by the board of directors; takes effect immediately upon passage and approval.