SB151 Summary

• Adds Chapter 29A to Title 27 of the Alabama Code requiring insurers domiciled in the state to maintain a risk management framework and conduct an annual Own Risk and Solvency Assessment (ORSA) consistent with the National Association of Insurance Commissioners (NAIC) guidance manual.

• Requires insurers to submit an ORSA Summary Report to the Commissioner of Insurance upon request no more than once per year, with the report signed by the chief risk officer or equivalent executive and provided to the insurer's board of directors.

• Exempts insurers with less than $500 million in annual direct written and unaffiliated assumed premium if their insurance group has less than $1 billion in such premium, with limited exceptions for financially troubled insurers.

• Designates all ORSA Summary Reports and related documents as confidential and privileged information not subject to public disclosure or subpoena, though the Commissioner may share information with other state and federal regulators, the NAIC, and third-party consultants under written agreements maintaining confidentiality.

• Imposes penalties of $100 per day for late filing, capped at $10,000, with first ORSA Summary Reports due in 2016; the law becomes effective January 1, 2016.