AL HB477

Adds Section 27-36-3.1 to Alabama Code to establish an alternative unearned premium reserve requirement specifically for bail bond surety insurers.

Allows the Commissioner of Insurance to require surety insurers to maintain a reserve on bail bonds and single-premium judicial bonds equal to the lesser of 35 percent of bail premiums in force or $7 per $1,000 of bail liability.

Requires insurers to report the reserve as a liability in financial statements filed with the Commissioner and submit a supplementary schedule detailing bail premiums in force, bail liability, and the associated reserve.

Defines "bail premiums in force" as excluding amounts retained by licensed bail bond agents or managing general agents, but requires a minimum of 6.5 percent of total consideration received for all bail bonds in force.

Becomes effective immediately upon passage and approval by the Governor.