SB23 Summary

• Reduces minimum capital and surplus requirements for pure captive insurance companies from $250,000 to $100,000 and for protected cell captive insurance companies from $250,000 to $100,000, with commissioner discretion based on feasibility studies.

• Authorizes captive insurance companies to place insurance on risks in alien and foreign jurisdictions if the underlying business is legal in that jurisdiction, subject to commissioner approval.

• Adds three new sections to establish procedures for stock-to-mutual conversions (mutualization), redomestication of foreign/alien captive insurers to Alabama, and risk retention group compliance with NAIC accreditation standards.

• Revises branch captive insurance company security requirements by changing "shall require" to "may require" a trust fund for liabilities attributable to branch operations.

• Clarifies definitions of various captive insurance company types including new categories for reinsurance captive insurance companies and special purpose financial captive companies.