Rule Changes Would Bring Captives Under Financial Reporting Rules

The Alabama Department of Insurance is proposing amendments to its regulations on captive insurers and has scheduled a hearing to take public comment. If the amendments are adopted, starting July 31 captive insurers would have to submit reports of their financial condition, just like casualty insurance companies. Another proposed amendment would require captive insurers to be audited annually by certified public accountants, unless the captive insurer has annual premiums of less than $1.2 million. That rule change would also become effective July 31. Captive insurers are special-purpos...