HB57 Summary

• Expands Alabama's Risk-Based Capital (RBC) law to include fraternal benefit societies and health organizations (health care service plans, HMOs, dental service corporations) under the same RBC requirements as traditional insurers.

• Amends the Producer Controlled Property and Casualty Insurer Law to include risk retention groups in the definition of "insurer" and subject them to applicable regulatory requirements.

• Requires risk retention groups chartered and licensed in Alabama to file annual financial statements with the Department of Insurance and NAIC in prescribed forms, and to adopt governance standards regarding board of directors, service provider contracts, audit committees, and codes of business conduct and ethics.

• Establishes governance standards for risk retention groups including independent director requirements, material service provider contract limits of five years, and audit committee composition and responsibilities.

• Takes effect January 1 following passage and approval, aligning Alabama law with current National Association of Insurance Commissioners model acts.