HB111 Summary

• Revises Alabama's Insurance Holding Company System Regulatory Act to require assessment of enterprise risk within insurance holding company systems and establish new disclosure and reporting requirements for registered insurers.

• Grants the Commissioner of Insurance authority to disapprove acquisitions of control of domestic insurers and requires pre-acquisition notification at least 30 days prior to proposed transactions.

• Authorizes the commissioner to participate in supervisory colleges with other state and federal regulators for domestic insurers that are part of international insurance holding company systems.

• Adds penalties for violations including civil forfeitures up to $10,000 per violation for directors and officers, and criminal penalties including fines and imprisonment for willful violations involving fraud.

• Grants receivers of liquidated or rehabilitated insurers the right to recover distributions and extraordinary compensation paid to affiliates and executives within one year preceding the insolvency proceeding.