SB46 Summary

• Amends Alabama insurance law governing unauthorized insurers and surplus line brokers, effective July 1, 2024.

• Clarifies that insurance contracts entered into in violation of licensing requirements do not preclude insureds from enforcing their rights under the contract according to its terms and Alabama law.

• Modifies surplus line broker requirements including quarterly reporting of transactions, licensing standards for resident and nonresident brokers, and allows per-policy fees separate from premium taxes.

• Establishes financial requirements for unauthorized insurers eligible for surplus line placement: minimum $5 million capital/surplus for domestic insurers, $15 million for alien insurers with trust funds, or 5+ years of authorized business history in domicile state.

• Repeals Chapter 61 of Title 27, eliminating Alabama's membership in the Surplus Lines Insurance Multi-State Compliance Compact Act.