SB189 Summary

• Amends Section 27-41-39 of the Alabama Code to exempt cash equivalents from investment quality and diversity requirements for foreign and alien insurers operating in Alabama

• Defines "cash equivalents" as investments with a maturity of 90 days or less that are highly rated by a nationally recognized statistical rating organization approved by the Insurance Commissioner

• Requires cash equivalents to be highly liquid, readily convertible to known amounts of cash without penalty, and present insignificant risk of value change

• Becomes effective immediately upon passage and gubernatorial approval or upon becoming law otherwise