SB164 Summary

• Exempts certain officers, directors, committee members, and employees of domestic insurers from conflict-of-interest prohibitions when holding common stock, mutual funds, bonds, and securities traded on national/international exchanges.

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

• Allows insurers to use custodial arrangements for securities that may be segregated or commingled with other insurers' securities if approved by the Insurance Commissioner.

• Permits domestic insurers to invest in securities and investments located in countries other than the United States or Canada, subject to specified percentage limitations based on sovereign debt designations and currency exposure.

• Limits individual investments or loans exceeding 10 percent of admitted assets to those authorized, approved, or ratified by the board of directors, with aggregate foreign investments capped at 20 percent of admitted assets.