The Alabama Captive Association’s bill to update the Alabama Captive Act was passed by a vote of 99-0 by the Alabama House of Representatives on Tuesday.
The updates contained in the bill provide for:
- A bold, wholesale rethinking of branch captives by greatly revamping branch captive requirements to more closely match those of pure captives. Multi-state and multi-national organizations will be better able to manage their Alabama risks by making capital standards more reasonable expanding the use of branch captives to all lines of business
- The removal of a requirement for coastal homeowners captives to be fronted
- The codification of a formal dormancy statute, that follows existing practice, to allow captives that may cease writing business for up to five years to remain in existence
- Clarification on risks allowed in foreign jurisdictions may be insured in domestic captive
The bill is sponsored by Representative David Faulkner, who also presented the previous amendment to the Alabama Captive Act in 2016.
“We are excited that captive legislation in Alabama continues to have unanimous support by the legislature. This shows the great commitment to captives. Alabama also continues its industry-first initiatives in branch captives and in coastal homeowners captives,” Executive Director of the Alabama Captive Association Norman Chandler said.
For more information, contact Mikala McCurry, Communications Manager for the Alabama Captive Association, at mmccurry@ArsenalRMI.com.