SB54 Summary

• Aligns Alabama's reinsurance credit laws with the National Association of Insurance Commissioners' Credit for Reinsurance Model Law to implement collateral provisions of covered agreements between the United States and the European Union and United Kingdom.

• Creates new Section 27-5B-8.1 establishing credit for reinsurance ceded to assuming insurers domiciled in "reciprocal jurisdictions" (non-U.S. jurisdictions with covered agreements, EU member states, or accredited U.S. jurisdictions) that meet specified capital, solvency, and reporting requirements.

• Requires assuming insurers in reciprocal jurisdictions to maintain minimum capital and surplus, provide notice of regulatory violations, consent to Alabama court jurisdiction and service of process, and demonstrate prompt claim payment practices.

• Authorizes the commissioner to create and publish lists of reciprocal jurisdictions and qualified assuming insurers, with authority to suspend or revoke eligibility if requirements are no longer met.

• Becomes effective January 1 following passage and applies to reinsurance cessions under agreements with inception, anniversary, or renewal dates at least six months after the effective date.