SB15 Summary

• Amends Alabama Code Section 8-37A-4 regarding motor vehicle value protection agreements to clarify insurance policy requirements for providers.

• Establishes three compliance options for providers to assure performance of obligations: (1) maintain insurance policy issued by an insurer with $15 million surplus or $10 million surplus with specified premium-to-capital ratio, (2) maintain 40 percent funded reserve account with 5 percent financial security deposit, or (3) maintain $100 million net worth individually or with parent company.

• Requires insurers under option 1 to annually file audited financial statements, NAIC Annual Statement, and actuarial certification with the Insurance Commissioner.

• Specifies that financial security deposits under option 2 may consist of surety bonds, eligible securities, cash, letters of credit, or other superintendent-approved security forms, with minimum deposit of $25,000.

• Becomes effective immediately upon passage and gubernatorial approval.