SB169 Summary

• Establishes the Standard Nonforfeiture Law for Life Insurance in Alabama to provide consistent minimum cash value requirements and nonforfeiture benefits for various life insurance products issued on or after January 1, 1972.

• Creates a new Standard Valuation Law chapter that aligns Alabama's reserve requirements with the National Association of Insurance Commissioners (NAIC) model, including provisions for principle-based valuation methods for certain policies.

• Removes the exemption for group life insurance products from nonforfeiture benefit requirements and provides more appropriate allowances for acquisition expenses.

• Requires life insurance companies to submit annual qualified actuarial opinions regarding reserve adequacy and establishes confidentiality protections for actuarial documents and principle-based valuation reports.

• Includes alternative valuation methods for small companies and single-state domestic insurers, with an effective date of January 1 following passage and approval by the Governor.