The Alabama House of Representatives has unanimously passed a bill supported by the Alabama Captive Association to update and modernise the state’s captive legislation.
The Alabama Captive Act will now go to the Senate after a 96-0 vote assured its passage through the House of Representatives.
The legislative update is expected to make Alabama more competitive in the formation of captive insurance companies.
Changes include: the modernisation of language and capital requirements for protected cell captives; allowing captives to form as any entity under law, including series limited liability companies and mutuals; an update to initial capital requirements for some captives; and allowing captives to obtain a 60-day provisional licence.
In addition, the update contains clarification of premium tax requirements and codifying current insurance department practices regarding how premium taxes are levied.
