AL SB149

Adds Section 27-36-3.1 to the Code of Alabama 1975 to establish a specific unearned premium reserve requirement for bail bond surety insurers as an alternative to general surety insurer requirements.

Permits 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 file supplementary schedules showing bail premiums in force, bail liability, and the associated special reserve.

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

Takes effect immediately upon passage and approval by the Governor or otherwise becoming law.