SB24 Summary

• Implements reinsurance collateral provisions of covered agreements between the United States, European Union, and United Kingdom by amending Alabama's insurance code provisions on credit for reinsurance.

• Creates new Section 27-5B-8.1 allowing credit for reinsurance ceded to assuming insurers domiciled in "reciprocal jurisdictions" (non-U.S. jurisdictions with in-force covered agreements, EU member states, or U.S. jurisdictions meeting NAIC accreditation standards) without requiring collateral if certain conditions are met.

• Requires assuming insurers in reciprocal jurisdictions to maintain minimum capital and surplus, solvency ratios, consent to jurisdiction in Alabama courts, and provide documentation as specified by the commissioner through rules.

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

• Makes the amendments effective to all reinsurance agreement cessions occurring after the act's effective date for agreements with inception, anniversary, or renewal dates at least six months after enactment.