HB113 Summary

• Increases the threshold for risk-based trend testing for life and health insurers from 2.5 to 3.0 times the authorized control level RBC, raising the level at which such companies can be required to undergo trend testing.

• Adds property and casualty insurers as subject to company action level events when their risk-based capital report indicates total adjusted capital between the company action level RBC and 3.0 times the authorized control level RBC and triggers the property and casualty trend test.

• Amends Sections 27-2B-2, 27-2B-3, and 27-2B-4 of the Code of Alabama 1975 relating to risk-based capital (RBC) requirements for domestic insurers.

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