Alabama governor Robert Bentley has signed the state’s new captive bill into law.
The update to modernise the Alabama Captive Act will become effective on 1 July.
The legislative update is expected to make Alabama more competitive in the formation of captive insurance companies.
Proposed changes include modernising the language and capital requirements for protected cell captives, allowing captives to form as series limited liability companies and mutuals, and introducing a 60-day provisional licence.
Alabama Captive Association president Norman Chandler commented: "We are thrilled with the support from the governor and the legislature for captives in Alabama. It is exciting that we had no opposition in any of the committees, House, or Senate along the way."
He added: "The newly revised Captive Act will significantly help the captive industry grow in Alabama. We thank the Alabama Department of Insurance and captive supervisor Sean Duke for their help and support of captives and this bill.”
