Insurance; to allow reorganization of a nonprofit health care service corporation under the control of a nonprofit holding company

HB 391 allows Alabama health care service corporations to restructure by creating a nonprofit parent company (called a "nonprofit holding corporation") under specific rules. This reorganization treats the change as internal restructuring (not a sale or change of control) and requires that no more than 25% of the corporation’s assets be transferred to the new structure. The health care service corporation must notify Alabama’s Department of Insurance and provide financial details after completing the reorganization, while the new nonprofit parent company operates under separate nonprofit rules and is not classified as an insurance company. This bill directly affects Alabama-based health care service corporations seeking to restructure ownership without triggering standard insurance regulations.