AL HB415

Increases minimum capital requirements for captive insurers: pure captive companies from $100,000 to $250,000, protected cell captive companies from $100,000 to $250,000, reinsurance captive companies from $10,000 to $1,000,000, and establishes $250,000 minimum for branch captive companies and $1,000,000 for risk retention groups.

Requires captive insurers to maintain a financial account with a brick-and-mortar bank or credit union in Alabama approved by the commissioner, or with an approved veteran-related financial institution.

Mandates captive insurers employ or contract with a captive manager meeting commissioner-approved competence standards, and requires the commissioner to evaluate the competence of captive managers and legal counsel when determining if a company promotes the general good of the state.

Requires licensed captive insurers to annually file an audited financial statement prepared under GAAP by June 30, along with an actuarial certification of loss reserves and loss expense reserves by a qualified actuary.

Requires captive insurers to notify the commissioner of any subsequent material change to submitted application items and obtain approval before offering additional types of insurance; effective date is June 1, 2026.