HB70 Summary

• Aligns Alabama's reinsurance credit requirements with the National Association of Insurance Commissioners (NAIC) Credit for Reinsurance Model Law.

• Adds Section 27-5B-8.1 creating a new category of reinsurers domiciled in "reciprocal jurisdictions" (non-U.S. jurisdictions with covered agreements with the United States, EU member states, or NAIC-accredited U.S. jurisdictions) who can receive reinsurance credit without collateral requirements.

• Requires reciprocal jurisdiction reinsurers to maintain minimum capital and surplus levels, minimum solvency ratios, and provide compliance certifications to the commissioner, with suspension or revocation of eligibility if requirements are not met.

• Implements collateral provisions of covered agreements between the United States and the European Union and United Kingdom, allowing elimination of collateral requirements for qualifying reinsurers.

• Effective January 1 following passage; applies to all reinsurance agreements with inception, anniversary, or renewal dates at least six months after the effective date.