|Committee: Banking and Insurance||Sponsor: Shelnutt|
|Analyst: Julie Knight||Date: 02/10/2021|
Senate Bill 23 as introduced provides further for the regulation of captive insurance companies to allow captive insurers to: (1) combine insurance written in this state with risks insured from other jurisdictions; (2) manage risks on business activities that are legal in other jurisdictions and; (3) write insurance on all lines of business. These provisions could increase receipts to the Insurance Department Fund and the State General Fund by an undetermined amount dependent upon the number of fees and premium taxes collected, respectively, from additional captive insurers licensed in Alabama and additional insurance premiums written by captive insurers in the state.
Further, this bill codifies the current practice of the Department of Insurance to allow captive insurance companies to apply for, and maintain, dormancy status that may be renewed every five years.
As substituted and reported by the Committee on Banking and Insurance, removes the provisions codifying the existing practice of the Department to allow captive insurance companies to apply for dormant status.
|Shay Shelnutt, Chairperson|
Banking and Insurance