SB 97 Alabama Senate · 2025 Regular Session

Department of Insurance, surplus line brokers providing insurance not readily available by licensed agents in this state

SB 97 amends current law regarding the licensing requirements for nonresident surplus line brokers in Alabama. The bill removes the requirement for these nonresident brokers to file an additional surety bond when applying for a license in the state. Nonresident surplus line brokers would still be required to submit an application and pay a license fee. This change is proposed to ensure Alabama's conformance with existing reciprocity provisions for the licensing of nonresident insurance agents.

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Apr 2025

Senate Passage

Mar 2025

House Passage

Apr 2025

Signed into Law

May 2025

Introduced Feb 5, 2025 Signed May 6, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Enrolled · 4 edits · May 6, 2025

MODERATE

This bill updated the requirements for nonresident surplus line brokers in Alabama, removing the need for them to post an additional surety bond while keeping other standard licensing requirements like applications and fees. The changes align Alabama with reciprocity provisions for nonresident insurance agents and added detailed rules for serving legal process on nonresident brokers.

Scope change

The bill now explicitly allows nonresident surplus line brokers to operate without an additional surety bond requirement, whereas previously they were required to post one. The scope of legal process service provisions was also expanded to include specific procedures for serving nonresident brokers.

REQUIREMENT

Removed the requirement for nonresident surplus line brokers to file an additional surety bond, reducing barriers for out-of-state brokers.

Added provisions allowing the bond amount to be increased based on surplus lines tax payments in previous years.

Modified the bond termination process to require at least 30 days' prior written notice to both the broker and the commissioner.

ENFORCEMENT

Added detailed procedures for serving legal process on nonresident surplus line brokers, including specific mail and service methods.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 29, 2025

Lower · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 1118

lower

Apr 2, 2025

Lower · Passed

Reported Out of Committee Second House

lower

Mar 6, 2025

Lower · Passed

Pending Committee Action in Second House (Insurance)

lower

Mar 6, 2025

Upper · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 294

upper

Feb 19, 2025

Upper · Passed

Reported Out of Committee House of Origin

upper

Feb 5, 2025

Upper · Passed

Pending Committee Action in House of Origin (Banking and Insurance)

upper

1 primary · 0 co-sponsors