HB552 Alabama 2015 Session

Under existing law, certain life insurance policies are required to contain provisions providing an appropriate minimum cash value

This bill would revise the Standard Nonforfeiture Law for Life Insurance to provide consistent minimum cash value requirements for various new life insurance products; to provide a more appropriate allowance for acquisition expenses; to remove the exemption for group life insurance products; and to provide for an effective date

Under existing law, the reserves of life insurance companies are determined according to the Standard Valuation Law

This bill would provide further for the regulation of life insurance by amending the Standard Valuation Law to make Alabama's law substantially similar to the current version of the model Standard Valuation Law developed by the National Association of Insurance Commissioners

To add Article 3 to Chapter 15 of Title 27, Code of Alabama 1975, and to add Chapter 36A of Title 27, Code of Alabama 1975, relating to the State Insurance Code and the regulation of insurance by the State Insurance Department; to further provide for the regulation of life insurance by reenacting with changes and recodifying the Standard Nonforfeiture Law for Life Insurance to provide consistent minimum cash value requirements for various new life insurance products, to provide a more appropriate allowance for acquisition expenses, to remove the exemption for group life insurance products, to reenact with changes the Standard Valuation Law to make the law substantially similar to the model Standard Valuation Law of the National Association of Insurance Commissioners; and to repeal Sections 27-15-28 and 27-36-7, Code of Alabama 1975.