SB166 Alabama 2022 Session
Bill Summary
Under existing law, the standard nonforfeiture law for individual deferred annuities requires a minimum interest rate on individual deferred annuities of one percent
This bill would set the minimum interest rate for individual deferred annuities at 15 basis points (0.15%)
This bill would exempt contingent deferred annuities from the standard nonforfeiture law for individual deferred annuities and authorize the Commissioner of Insurance to prescribe by rule the nonforfeiture benefits for contingent deferred annuities
Under existing law, the Commissioner of Insurance regulates insurance holding company systems pursuant to the Insurance Holding Company System Regulatory Act. The members of an insurance holding company system are required to meet certain capital and liquidity requirements to protect the solvency of the insurers within the holding company. Based on reporting to the commissioner, the commissioner performs group analysis of an insurance holding company, but without the benefit of a consolidated statutory accounting system and financial statements
This bill would provide for a group capital calculation and related reporting requirements to the Commissioner of Insurance regarding an insurance holding company. The group capital calculation would include a group capital ratio
This bill would further provide for a liquidity stress test of an insurance holding company. The ultimate controlling person of every insurer subject to holding company registration, if determined to meet certain conditions, would be required to file the results of a specific year's liquidity stress test to the lead state insurance commissioner to assist in the group regulation of the insurance holding company
This bill would further provide for the confidentiality of information in the possession of the Commissioner of Insurance and third party consultants designated by the commissioner relating to insurance holding company regulation and would include the group capital calculation and resulting group capital ratio and the liquidity stress test and its results and supporting documentation as filed with the commissioner within the confidentiality provisions
Also under existing law, the Standard Valuation Law requires the Commissioner of Insurance to annually value the reserves for outstanding life insurance policies and annuity and endowment contracts of life insurance companies doing business in this state. The law provides for an alternative valuation for small companies that meet certain conditions, including certain dollar figures of premiums
This bill would revise the conditions for the Commissioner of Insurance to use the small company alternative valuation provisions for the valuation of the reserves of certain small companies meeting certain requirements
Relating to insurance; to amend Section 27-15-28.2, Code of Alabama 1975, relating to the standard nonforfeiture law for individual deferred annuities, to decrease the minimum interest rate to 15 basis points (0.15%); and to exempt contingent deferred annuities from the standard nonforfeiture law and to authorize the Commissioner of Insurance to adopt by rule the nonforfeiture benefits for contingent deferred annuities; to amend Sections 27-29-1, 27-29-3, 27-29-4, and 27-29-7 of the Code of Alabama 1975, to revise the Alabama Insurance Holding Company System Regulatory Act and the regulation of insurance holding company systems by the Commissioner of Insurance; to provide for a group capital calculation and a liquidity stress test within the insurance holding company system; to further provide for the confidentiality of information in the possession of the Commissioner of Insurance and third party consultants designated by the commissioner relating to insurance holding company regulation and would include the group capital calculation and resulting group capital ratio and for the liquidity stress test and its results and supporting documentation as filed with the commissioner within the confidentiality provisions; and to amend Section 27-36A-20, Code of Alabama 1975, as amended by Act 2021-397, 2021 Regular Session, the Standard Valuation Law, which requires the Commissioner of Insurance to annually value the reserves for outstanding life insurance policies and other contracts of life insurance companies doing business in this state; and to revise the small company alternative valuation provisions.
Bill Actions
Action Date | Chamber | Action |
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February 2, 2022 | S | Read for the first time and referred to the Senate committee on Banking and Insurance |
Bill Text
Bill Documents
Type | Link |
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Bill Text | SB166 Alabama 2022 Session - Introduced |