The bill SB46 Enrolled amends the Code of Alabama 1975, specifically targeting the regulation of unauthorized insurers, surplus line brokers, and surplus line insurance. It clarifies that no person may act as an agent for or aid unauthorized insurers in transacting insurance within Alabama, and those who do so will be liable for any resulting losses and premium taxes. The bill also revises the procedures for procuring surplus line insurance, including the diligent effort requirement, the definition of an industrial insured, and the reporting and acknowledgment process for surplus line brokers and insureds. It ensures that surplus line coverage contracts are registered, delivered, and fully enforceable according to Alabama's Surplus Line Insurance Law.

The bill introduces changes to the qualifications and licensing process for surplus line brokers, including experience requirements, application forms, license fees, and bond conditions. It outlines the responsibilities of individual producers and provisions for nonresident surplus line brokers. The bill allows brokers to charge a per-policy fee and mandates that they must not place insurance with financially unsound or ineligible insurers. It also updates the financial requirements for foreign or alien insurers, removing the five-year transaction history requirement and allowing for a deposit of one million dollars for Alabama policyholders. The reporting requirements for surplus line brokers are specified, including the filing of a verified statement of transactions and the remittance of a six percent tax on direct premiums. The bill repeals Chapter 61 of Title 27 and will become effective on July 1, 2024.

Statutes affected:
Introduced: 27-10-1, 27-10-2
Enrolled: 27-10-1, 27-10-2