SB45 Bill Summary

• Revises Alabama's Risk-Based Capital (RBC) for Insurers Act to include fraternal benefit societies and health organizations (health care service plans, HMOs, dental service corporations) under the same RBC requirements as property and casualty insurers.

• 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 including board of directors composition, service provider contracts, written policies, and audit committees.

• Mandates risk retention groups adopt a code of business conduct and ethics for directors, officers, and employees covering conflicts of interest, confidentiality, fair dealing, and compliance with applicable laws.

• Updates the Alabama Business Transacted with Producer Controlled Property and Casualty Insurer Law to include risk retention groups in the definition of "insurer" and expands regulatory oversight of controlled insurer relationships.

• Becomes effective January 1 following passage and approval, with risk retention groups having one year from the effective date to comply with new governance standards.