At its core, the Bill places limits on how much capital captive insurers must hold. Pure captive insurance companies previously required to maintain intact paid-in capital and surplus of $100,000 will now be required to maintain $250,000 – or an alternative amount that the Commissioner determines with actuarial support. Protected cell captive insurance companies face the same increase from $100,000 to $250,000 with the same commissioner discretion. The most dramatic jump is for reinsurance captive insurance companies, whose minimum limits have increased from $10,000 to $1,000,000, with no scope for the commissioner to set a lower option. Risk retention groups, previously bundled with association captives at $500,000, are now made into their own category at $1,000,000, or another amount determined by the Commissioner with actuarial support. The capital limits for agency brothers, association brothers, industrial insured brothers and branch brothers will remain where they were.
Alabama raises minimum captive insurance capital limit in new law & more related News Here
