HB258 Summary

• Amends Section 27-36A-20 of the Code of Alabama 1975 regarding the Standard Valuation Law for life insurance company reserves.

• Removes two conditions from the small company alternative valuation provisions: the requirement that a company maintain at least 450 percent of authorized control level risk capital, and the requirement for an unqualified opinion from an appointed actuary.

• Reduces the number of conditions from five to three for companies to qualify for small company alternative valuation, consolidating remaining requirements around ordinary life premium thresholds and universal life policy secondary guarantees.

• Exempts companies using the alternative valuation from principle-based reserves corporate governance requirements, certification of effectiveness of principle-based reserves internal controls, and principle-based reserves valuation reports.

• Becomes effective immediately upon passage and approval by the Governor.