HB 415 Alabama House · 2026 Regular Session

Department of Insurance; additional requirements for captive insurers specified

HB 415 requires Alabama captive insurance companies (which insure only risks of their parent companies or affiliated groups) to meet stricter financial and operational standards. It increases minimum paid-in capital requirements, mandates annual submission of audited financial statements and actuarial certifications of claim reserves, and requires notice of any significant changes to previously submitted information. The bill also directs the insurance commissioner to evaluate captive managers' competence, legal counsel, and business plans when reviewing applications. These changes apply specifically to licensed captive insurers operating in Alabama, aiming to strengthen oversight of these specialized insurance entities.

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

House Passage

Mar 2026

Senate Passage

Apr 2026

Signed into Law

Apr 2026

Introduced Feb 10, 2026 Signed Apr 15, 2026

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What changed between versions

Engrossed → Enrolled · 5 edits · Apr 15, 2026

MODERATE

The bill was finalized for the governor's signature, updating the bill number and page headers. Substantively, the text was reorganized to merge previously split sections, resulting in a new requirement for captive insurers to maintain a registered agent in Alabama. The bill also added a new provision allowing captive insurers to provide excess workers' compensation insurance to their affiliates, while removing a separate clause regarding the reinsuring of workers' compensation.

Scope change

The bill's scope remains focused on regulating captive insurers in Alabama, but the specific operational requirements were consolidated and expanded to include new rules for registered agents and excess workers' compensation coverage.

REQUIREMENT

Consolidated the text of Section 27-31B-3, merging the license application details and operational restrictions into a single, continuous section.

Added a new requirement that captive insurers must appoint a registered agent in Alabama to accept legal service of process.

Added a new provision permitting captive insurers to provide excess workers' compensation insurance to their parent companies and affiliates.

Removed a standalone sentence allowing captive insurers to reinsure workers' compensation, as this authority is now implied within the broader excess coverage provision.

ENFORCEMENT

Added new rules regarding the dismissal of captive managers who fail to fulfill their duties and restrictions on managers serving as company presidents.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 7, 2026

Upper · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 1204

upper

Mar 17, 2026

Upper · Passed

Reported Out of Committee Second House

upper

Mar 10, 2026

Lower · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 828

lower

Mar 10, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 827

lower

Mar 10, 2026

Introduced

Robbins 1st Amendment Offered

lower

Mar 10, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 826

lower

Mar 10, 2026

Introduced

Ellis 1st Amendment Offered

lower

Mar 10, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 825

lower

Mar 10, 2026

Introduced

Insurance Engrossed Substitute Offered (Insurance)

lower

Mar 4, 2026

Lower · Passed

Reported Out of Committee House of Origin (Insurance)

lower

Feb 10, 2026

Lower · Passed

Pending Committee Action in House of Origin (Insurance)

lower

1 primary · 0 co-sponsors