HB189 Summary

• Amends Alabama insurance code sections 27-27-26, 27-27-29, 27-41-5, and 27-41-27 to regulate domestic insurer activities, asset maintenance, and investments.

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

• Prohibits insurer officers, directors, committee members, and employees from depositing or investing funds except in the insurer's corporate name (with limited exceptions for equity investments in street names), borrowing insurer funds, or having pecuniary interests in insurer transactions except as stockholders/members or holders of certain publicly traded securities and mutual funds.

• Allows domestic insurers to use custodial arrangements for segregated or commingled securities with other insurers if approved by the Insurance Commissioner, and permits investments in foreign securities and currencies within specified percentage limits based on sovereign debt ratings.

• Establishes that investments or loans exceeding 10 percent of admitted assets require board of directors authorization, and becomes effective immediately upon passage and gubernatorial approval.