SB170 Summary

• Adds Chapter 29A to Alabama insurance law requiring certain insurers to maintain a risk management framework and conduct annual Own Risk and Solvency Assessments (ORSA).

• Insurers must submit ORSA Summary Reports to the Commissioner of Insurance upon request, no more than once per year, signed by the chief risk officer or responsible executive.

• Exempts insurers with annual premiums under $500 million (and whose insurance groups have premiums under $1 billion) from ORSA requirements, though the Commissioner may require assessments for troubled insurers.

• Establishes ORSA Summary Reports as confidential and privileged documents protected from public disclosure, open records requests, subpoenas, and civil discovery, though the Commissioner may share information with other regulators and NAIC under written confidentiality agreements.

• Imposes penalties of $100 per day (up to $10,000) for insurers failing without just cause to timely file ORSA Summary Reports, with first filings required in 2016.