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AL HB270
Bill
Status
4/20/2016
Primary Sponsor
David Faulkner
Click for details
AI Summary
HB270 - Captive Insurance Companies
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Allows risk retention groups and series limited liability corporations to operate as captive insurance companies in Alabama, expanding organizational options.
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Reduces initial capital requirements for sponsored protected cell captive insurance companies from $1,000,000 to $250,000 and for association captive insurance companies/risk retention groups from $750,000 to $500,000.
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Caps annual premium tax at $100,000 maximum and eliminates premium tax requirement until a captive insurance company has been licensed for 12 months.
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Establishes 60-day provisional licensing period for captive insurance companies meeting preliminary requirements, enabling faster entry to market.
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Creates governance framework for protected cell captive insurance companies, including incorporated cell option, separate accounting requirements, and asset segregation protections.
Legislative Description
Captive insurance companies, licensure and taxing of revised, Sec. 27-31B-25 added; Sec. 27-31B-23 repealed; Secs. 27-31B-2, 27-31B-3, 27-31B-6, 27-31B-8, 27-31B-9, 27-31B-12, 27-31B-16, 27-31B-19, 27-31B-20, 27-31B-22, 27-31B-24 am'd.
Insurance Companies
Last Action
Delivered to Governor at 4:49 p.m. on April 20, 2016.
4/20/2016