HB506 Summary

• Requires all insurers domiciled in Alabama to submit a Corporate Governance Annual Disclosure (CGAD) to the Commissioner of Insurance by June 1 each year, replacing the previous requirement of reporting only during five-year examinations.

• CGAD must be prepared substantially similar to the National Association of Insurance Commissioners (NAIC) Corporate Governance Model Regulation and include information about corporate governance structure, policies, and practices at the appropriate organizational level.

• Designates CGAD documents and related information as confidential and privileged, not subject to public records laws, subpoenas, or discovery in private civil actions, while allowing the commissioner to share information with other regulators and third-party consultants under strict confidentiality agreements.

• Imposes penalties of $1,000 per day for late filing (maximum $100,000), which the commissioner may reduce if filing would cause financial hardship to the insurer.

• Becomes effective January 1, 2020.