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Read. Follow. Verify.Alabama Senate Bill 207 Raises Capital Requirements, Taxes, and Compliance Rules for Captive Insurers
Last action · January 27, 2026: Pending Committee Action in House of OriginSponsor: Shay Shelnutt
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What This Bill Would Do
Alabama SB 207 raises the minimum requirements and annual premium taxes for certain captive insurance companies operating in the state. The bill also introduces stricter operational mandates, requiring captive insurers to contract with approved banks, managers, CPAs, and actuaries, and to submit detailed feasibility studies and audited financial statements starting June 1, 2026.
Captive insurance companies operating in Alabama face higher financial entry hurdles, mandatory annual independent audits, s, and increased baseline premium taxes of at least $5,000 annually. These changes alter compliance obligations and operating costs for businesses utilizing captive insurance structures within the state.
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Captive insurance companies
Captive insurers must meet higher paid-in capital minimums, pay increased baseline premium taxes, and comply with new annual audit and actuarial certification requirements.
Captive managers
Captive managers are subject to commissioner approval standards regarding competence and experience, and cannot serve as the president of the captive insurer.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
When must captive insurers file their annual audited financial statements?
What is the minimum premium tax a captive insurance company must pay?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
2 actions- Jan 27, 2026SenateCommitteePending Committee Action in House of Origin
- Jan 27, 2026SenateIntroducedRead for the first time and referred to the Senate Committee on Banking and Insurance
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Stricter Oversight and Capitalization for Captive Insurers
The bill enacts a broad tightening of state regulatory control over captive insurers by doubling certain capital minimums and mandating annual external financial audits and actuarial certifications.
Connected Entities
Sources
alison.legislature.state.al.us
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy20Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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