Ala. Admin. Code r. 482-1-138-.17.1

Current through Register Vol. 43, No. 1, October 31, 2024

Section 482-1-138-.17.1 - Captive Risk Retention Groups

(1) In addition to any requirements in Code of Ala. 1975, Sections §§ 27-31B-1, et. seq., Alabama domiciled risk retention groups formed as captives are subject to the following chapters and sections of the Alabama Insurance Code, Title 27, Code of Ala. 1975:

(a) The following sections in Chapter 2, Examinations:

1. § 27-2-20. Examinations - Power Generally.

2. § 27-2-22. Examinations - Examiners.

3. § 27-2-23. Examinations - How Conducted.

4. § 27-2-24. Examinations - Report; confidentiality of information.

5. § 27-2-26. Witnesses and evidence for examination, investigation or hearing - Generally.

(b) All of Chapter 2A, Disclosure of Material Transactions, but only in the event the transaction did not require disclosure pursuant to Rule 482-1-138-.16.

(c) The following sections in Chapter 2B, Risk-Based Capital for Insurers:

1. § 27-2B-2. Definitions.

2. § 27-2B-3. Preparation and submission of RBC report; formulas; desirability of excess capital; adjustment of inaccurate RBC report.

3. § 27-28-4. Company action level event; preparation and submission of RBC plan or revised RBC plan; notification of unsatisfactory filing; copies of plans.

4. § 27-2B-5. Regulatory action level event; commissioner's duties; determination of corrective actions; retention of consultants.

5. § 27-2B-6. Authorized control level event; commissioner's duties.

6. § 27-2B-7. Mandatory control level event; commissioner's duties.

7. § 27-2B-8. Right to departmental hearing; notification of request for hearing.

8. § 27-2B-9. Confidentiality of reports and plans; information sharing agreements; publication of RBC levels prohibited; use of reports and plans by commissioner.

9. § 27-2B-10. Relationship to other laws; adoption of rules; exemptions.

10. § 27-2B-12. Liability of commissioner or Department of Insurance.

11. § 27-2B-13. Effectiveness of notice to insurer.

(d) The following section in Chapter 3, Authorization of Insurers:

1. § 27-3-26.1. Annual statement to include statement of qualified independent loss reserve specialist.

(e) The following section in Chapter 5, Kinds of Insurance; Limits of Risk; Reinsurance:

1. § 27-5-11 Limits of Risk.

(f) The following sections in Chapter 5B, Credit for Reinsurance:

1. § 27-5B-4. Licensed Reinsurer.

2. §27-SB-5. Accredited Reinsurer.

3. §27-SB-6. Reinsurer domiciled in state with substantially similar law.

4. § 27-5B-7. Reinsurer maintaining a trust fund.

5. § 27-5B-8. Certified Reinsurer.

6. § 27-5B-10. Reinsurer not licensed, accredited or certified - Additional reinsurance agreement requirements.

7. § 27-5B-13. Concentration risk.

(g) All of Chapter 6A, Managing General Agents.

(h) All of Chapter 6B, Business Transacted with Producer Controlled Property and Casualty Insurer Law.

(i) The following sections in Chapter 27, Organization and Corporate Procedures of Stock and Mutual Insurers:

1. § 27-27-37. Dividends - Domestic stock insurers.

2. § 27-27-38. Dividends - Domestic mutual insurers.

(j) The following sections in Chapter 29, Insurance Holding Company Systems:

1. § 27-29-1. Definitions.

2. § 27-29-2. Subsidiaries and affiliates of domestic insurers.

3. § 27-29-3. Acquisition of control of, or merger with, domestic insurers.

4. § 27-29-3.1. Acquisition involving change in control of insurer authorized to do business in Alabama; pre-acquisition notification; violation of competitive standards.

5. § 27-29-4. Registration of insurers.

6. § 27-29-5. Transactions of insurers with affiliates; adequacy of surplus; dividends and other distributions.

7. § 27-29-6. Registered insurers - Examination of records, etc., of insurer or affiliates.

8. § 27-29-6.l. Registered insurers - Supervisory colleges.

9. § 27-29-6.2. Group-wide supervisor for internationally active insurance group.

10. § 27-29-7. Confidentiality of documents, materials, or other information; powers of commissioner; disclosure and sharing of documents, etc.

11. § 27-29-9. Injunctions; prohibitions against voting securities; sequestration of voting securities.

12. § 27-29-11.1. Recovery rights of receivers.

(k) The following sections in Chapter 31A, Risk Retention Act:

1. § 27-31A-3.1 Risk retention groups to comply with governance standards.

2. § 27-31A-4(4), (6) and (7) Risk retention groups not chartered in this state.

(l) All of Chapter 32, Rehabilitation, Reorganization, Conservation, and Liquidation of Insurers.

(m) The following sections in Chapter 36, Liabilities:

1. § 27-36-1 Liabilities generally.

2. § 27-36-3 Unearned premium reserve - Property, general casualty and surety insurance.

3. § 27-36-4 Unearned premium reserve- Marine and transportation insurance.

4. § 27-36-6 Increase of inadequate loss reserves.

(n) All of Chapter 37, Assets.

(o) All of Chapter 41, Investments of Domestic Insurers and Health Maintenance Organizations.

(p) All of Chapter 62, Insurance Data Security Law.

(2) The following regulations shall also be applicable to Alabama domiciled risk retention groups formed as captives:

(a) Chapter 482-1-055, Insurance Holding Company System Regulation with Reporting Forms and Instructions.

(b) Chapter 482-1-060, Only Admissible Assets Shall be Reported on Annual Statements.

(c) Chapter 482-1-077, Custodial Agreements and the Use of Clearing Corporations by Domestic Insurance Companies.

(d) Chapter 482-1-094, Surplus Notes.

(e) Chapter 482-1-097, NAIC Accounting Practices and Procedures and Insurer Reporting Requirements.

(f) Chapter 482-1-098, Valuation of Investments.

(g) Chapter 482-1-100, Requirement for Annual Audited Financial Reports.

(h) Chapter 482-1-101, Standards for Determining Hazardous Financial Condition.

(i) Chapter 482-1-102, Participation in the NAIC Insurance Regulatory Information System (IRIS).

(j) Chapter 482-1-103, Conduct of Examinations and Filing of Reports of Examination.

(k) Chapter 482-1-106, Managing General Agents.

(l) Chapter 482-1-118, Record Retention for Financial Audits and Time Limits for Response to Inquiries from Examiners.

(m) All of Chapter 482-1-141, Annual Financial Reporting, with the exception of Rule 482-1-141-.14.

(n) Chapter 482-1-142, Biographical Data Relating to Company Officers and Directors.

(o) Chapter 482-1-149, Property and Casualty Actuarial Opinion on Loss Reserves.

(p) Chapter 482-1-156, Credit for Reinsurance.

Ala. Admin. Code r. 482-1-138-.17.1

Adopted by Alabama Administrative Monthly Volume XXXIX, Issue No. 09, June 30, 2021, eff. 7/1/2021.

Amended by Alabama Administrative Monthly Volume XL, Issue No. 10, July 29, 2022, eff. 7/17/2022.

Author: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §§ 27-2-17; 27-31B-17.