SB77 Summary

• Revises the Alabama Insurance Holding Company System Regulatory Act to require assessment of "enterprise risk" (risks from non-insurance affiliates) within insurance holding company systems, aligning with National Association of Insurance Commissioners standards.

• Permits consolidated public hearings for proposed acquisitions of control when approval from multiple state commissioners is required, and requires pre-acquisition notification to the commissioner with authority to disapprove acquisitions under certain circumstances.

• Authorizes the commissioner to participate in supervisory colleges with other regulators for domestic insurers that are part of holding companies with international operations to assess compliance with state insurance law.

• Adds enhanced penalties including daily fines up to $1,000 (maximum $50,000) for failure to file required registrations, civil forfeitures up to $10,000 per violation for officers/directors, and criminal penalties up to 5 years imprisonment and $50,000 fines for willful violations involving false statements.

• Grants receivers appointed for insolvent insurers the right to recover distributions and extraordinary compensation paid to directors, officers, and employees during the year preceding liquidation or rehabilitation from parent corporations and affiliates that controlled the insurer.