SB498 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, which were previously applied only to life and health insurers.

• Property and casualty insurers are now subject to a "company action level event" when their total adjusted capital falls between their company action level RBC and 3.0 times their authorized control level RBC, and they trigger the trend test calculation specified in property and casualty RBC instructions.

• Requires insurers experiencing a company action level event to prepare and submit a comprehensive RBC plan to the commissioner within 45 days, including identification of contributing conditions, proposed corrective actions, and financial projections for the current year and at least four succeeding years.

• Corrects a citation error in the definition of "adjusted RBC report" by changing subsection reference from "(c)" to "(e)" in Section 27-2B-3.

• Becomes effective immediately upon passage and approval by the Governor.