FISCAL NOTE

House Bill 31 as introduced provides further for the regulation of captive insurance companies. The provisions of this bill could increase receipts to the Insurance Department Fund and the State General Fund by an undetermined amount dependent upon the number of fees and premium tax collected, respectively, from additional captive insurers licensed in Alabama and additional insurance premiums written by captive insurers in the state.

Further, this bill establishes a provision for captive insurance companies to apply for, and maintain, dormancy status that may be renewed every five years, which could also increase receipts to the Insurance Department Fund by $300 annually for each captive insurance company that renews its dormancy status. This bill would also increase the administrative obligations of the Commissioner of the Department of Insurance to adopt rules concerning dormancy certifications.