AL SB413

Allows the Insurance Commissioner to require bail bond surety insurers to maintain an alternative unearned premium reserve in place of the standard reserve required for other surety insurers.

Reserve must equal the lesser of 35 percent of bail premiums in force or $7 per $1,000 of bail liability for all bail bonds or single-premium bonds without definite expiration dates in judicial proceedings.

Requires insurers to report the reserve as a liability in financial statements filed with the commissioner and file supplementary schedules showing 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.