MONTGOMERY, AL – The Alabama Captive Insurance Association (ACIA) pushed forward an ambitious agenda this year with one of the most comprehensive and aggressive captive laws in the country. ACIA advocated for the modernization of the Alabama Captive Act that was previously amended in 2016 so that the updated law would promote economic development within the state as well as adding flexibility and innovation to the captive industry in Alabama.
Last Thursday, the Senate version of the bill successfully passed through the House chamber with a 94-0 affirmative vote and will now be sent to Governor Kay Ivey’s desk to be signed into action. This continues ACIA’s streak of receiving unanimous support for all of its legislative efforts since its founding in 2006.
The ability for Alabama to create captive solutions for the unique interests of captive owners, opens the door for exceptional growth in the forthcoming years. Norman Chandler, President of ACIA, and co-author of the legislation said, “we are excited for industry-first innovation in reinsurance and branch captives. We’ve taken a wholesale review of these types of captives and tried to bring them into the modern age with this legislation.”
Justin Law, President of ACIA PAC and legislation co-author, said, “the ‘legal there, insure it here’ doctrine included in this update plus the new special purpose financial captive (SPFC) language allows maximum creativity and flexibility in designing an Alabama captive. ACIA has expanded the capabilities of the alternative risk industry here so that we can bring more business and companies to the state of Alabama.”
The captive industry within the state of Alabama benefits from great relationships with government and elected officials, as well as the Alabama Department of Insurance. “The partnership and cooperation with both entities allows Alabama to boast one of the best environments for captives and the alternative risk industry.” said Commissioner Jim Ridling, Alabama’s top captive regulator.
The Alabama Legislature passed an incredibly comprehensive update to Alabama’s statute. In addition to lowering the minimum capitalization requirements for pure and protected cell captives to 100,000 USD. This legislation propels Alabama to the vanguard in terms of the capabilities of our service providers to create innovative captive solutions for their clients. Captive managers now have numerous new captive formations at their disposal including:
- Agency Captives
- Reinsurance Captive Insurance Companies
- Special Purpose Financial Captives (SPFCs)
To view the full text of the bill, CLICK HERE.
The Alabama Captive Insurance Association (ACIA) supports the captive industry in the State of Alabama and provides captive networking and educational opportunities for captive owners, captive insurance professionals and young professionals entering the captive industry while promoting the collective voice of its members with state and federal regulators, legislators, and the National Association of Insurance Commissioners.