HB220 - Captive Insurance Companies

• Amends definitions and requirements for captive insurance companies in Alabama, including authorizing insurance placement on risks in alien and foreign jurisdictions subject to commissioner approval.

• Revises security requirements for branch captive insurance companies by changing "shall" to "may" regarding trust fund establishment for branch operation liabilities.

• Establishes new certificate of dormancy program allowing pure, protected cell, association, and industrial insured captive insurance companies that have ceased operations and have no remaining liabilities to apply for dormancy status with $25,000 minimum capital requirement.

• Modifies Alabama Coastal Captive Insurance Company requirements and exemptions, including relaxing the one-year association existence requirement and clarifying homeowners insurance coverage limitations to gulf front, beach, and seacoast areas.

• Effective date is the first day of the third month following passage and gubernatorial approval.