HB31 Summary

• Revises definitions related to captive insurance companies, including clarification that branch captive insurance companies may pool business done in Alabama with business done in alien jurisdictions subject to commissioner approval.

• Authorizes insurance to be placed on risks in alien and foreign jurisdictions if the underlying business is legal in those jurisdictions, subject to commissioner approval.

• Revises security requirements for branch captive insurance companies by changing mandatory trust fund requirements to discretionary ("may require" instead of "shall require").

• Creates certificates of dormancy for captive insurance companies that have ceased transacting insurance business with no remaining liabilities, requiring $25,000 in capital and annual financial reports, renewable every five years.

• Establishes that capital and surplus requirements in Sections 27-31B-6 and 27-31B-7 apply to Alabama Coastal Captive Insurance Companies and repeals Section 27-31C-4.