Insurance Dept., life and annuity policies, standard nonforfeiture law for individual deferred annuities, group capital calculation and stress test, providing for holding companies, duties to Commission and lead state commissioner, small company alternative valuation provision, exemptions, exemption premium based on valuation manual of NAIC, Commissioner of Insurance may regulate by rule, Secs. 27-15-28.2, 27-29-1, 27-29-3, 27-29-4, 27-29-7, 27-36A-20 am'd.
Impact
The bill also introduces significant regulatory changes for insurance holding companies, including the implementation of group capital calculations and liquidity stress tests. These provisions aim to enhance the solvency and financial soundness of insurance companies by establishing stringent reporting requirements to the Commissioner of Insurance, alongside confidentiality measures. By ensuring proper liquidity and capital adequacy, the bill seeks to bolster consumer confidence in the insurance sector while providing regulators with enhanced tools to oversee insurance holding company systems.
Summary
SB166 aims to amend existing laws concerning insurance policies in Alabama, particularly focusing on the standard nonforfeiture law for individual deferred annuities. The bill proposes to lower the minimum interest rate on individual deferred annuities to 15 basis points (0.15%) and exempts contingent deferred annuities from the standard nonforfeiture law, allowing the Commissioner of Insurance to determine nonforfeiture benefits applicable to these annuities. This shift potentially benefits insurers by reducing the financial burdens associated with higher interest obligations, but may raise concerns regarding policyholders’ protections.
Contention
Notably, there were concerns highlighted regarding the exemption conditions for small insurance companies and the potential implications on consumer benefits. Critics argue that while the amendments aim to incentivize insurers to operate within the state, they may inadvertently lower the safety nets available to policyholders through reduced nonforfeiture guarantees. The balance between promoting business efficiencies and safeguarding consumer interests could lead to ongoing discussions in legislative forums as this bill progresses.
Same As
Insurance Dept., life and annuity policies, standard nonforfeiture law for individual deferred annuities, group capital calculation and stress test, providing for holding companies, duties to Commission and lead state commissioner, small company alternative valuation provision, exemptions, exemption premium based on valuation manual of NAIC, Commissioner of Insurance may regulate by rule, Secs. 27-15-28.2, 27-29-1, 27-29-3, 27-29-4, 27-29-7, 27-36A-20 am'd.
Department of Corrections; Deputy Commissioner for Prison Rehabilitation renamed; number of Deputy Commissioners further provided for; additional exempt and unclassified employees created; additional Joint Prison Oversight Committee duties created
Insurance Dept, insurers required to be licensed, unauthorized insurers, exceptions for surplus line brokers, further provided for, authority for membership in the Surplus Line Insurance Multi-State Compliance Compact Act repealed.
Insurance Department insurers required to be licensed, unauthorized insurers, exceptions for surplus line brokers, further provided for, authority for membership in the Surplus Line Insurance Multi-State Compliance Compact Act repealed.
Insurance; motor vehicles; assigned risk plan, department of insurance to issue motor vehicle liability insurance policies; liability waived for the dept, its officers and employees, the state.
Insurance Dept., life and annuity policies, standard nonforfeiture law for individual deferred annuities, group capital calculation and stress test, providing for holding companies, duties to Commission and lead state commissioner, small company alternative valuation provision, exemptions, exemption premium based on valuation manual of NAIC, Commissioner of Insurance may regulate by rule, Secs. 27-15-28.2, 27-29-1, 27-29-3, 27-29-4, 27-29-7, 27-36A-20 am'd.
Data calls authorized, group capital calculations established for insurers, insurers required to complete a NAIC liquidity stress test, insurers required to file group capital calculations and results from the NAIC liquidity stress test, insurers required to secure a deposit or bond, limited long-term care insurance provided for and regulated, automobile insurance governing provisions modified, data classified, penalties provided, and technical changes made.
The standards and management of an insurer with an insurance holding company system and the confidential treatment of investigation and examination records of insurance holding companies.
An Act Concerning Changes To The Standard Valuation And Nonforfeiture Laws, And The Use Of The National Association Of Insurance Commissioners' Valuation Manual.