AL SB207

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

Requires captive insurers to contract with commissioner-approved captive managers, certified public accountants, and actuaries, and prohibits captive managers from serving as president of the captive insurer.

Mandates submission of detailed operational plans including three-year pro forma financial statements, feasibility studies, biographical background information for directors/officers and persons controlling 10% or more ownership, and notice of material changes within 30 days.

Requires annual filing of audited financial statements prepared under GAAP and actuarial certification of loss reserves by June 1 each year.

Section 1 provisions become effective June 1, 2026; premium tax provisions (Section 2) become effective January 1, 2027.