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SB 97

An Act establishing a big game guide concession area permit program on land in the state; relating to the duties of the Big Game Commercial Services Board, the Board of Game, the Department of Fish and Game, and the Department of Natural Resources; requiring the Board of Game to establish an initial big game guide concession area; and providing for an effective date.

34th Legislature (2025-2026)

Senate Bill 97 simplifies licensing for nonresident surplus line brokers in Alabama by removing the surety bond requirement, enhancing access to insurance services.

(H) FN7: (CC:HB53/DNR)
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Bill Summary · SB 97

Summary of Senate Bill 97 (SB 97)

Overview

Senate Bill 97, titled "Department of Insurance, surplus line brokers providing insurance not readily available by licensed agents in this state," was introduced on February 12, 2025, and has been enacted as Act 2025-271. The bill primarily addresses the licensing requirements for nonresident surplus line brokers in Alabama.

Purpose and Intent

The main purpose of SB 97 is to amend existing laws governing the licensing of nonresident surplus line brokers. The intent is to simplify the licensing process by removing the requirement for an additional surety bond, thereby aligning Alabama's regulations with reciprocity provisions for nonresident insurance agents.

Key Provisions

  • Licensing Requirements:

    • Nonresident surplus line brokers will now only need to submit an application and pay a license fee, eliminating the previous requirement for an additional surety bond.
    • This change aims to facilitate easier access for nonresident brokers to operate in Alabama, ensuring that the state remains compliant with national reciprocity standards.

  • Application Process:

    • Nonresident applicants must still comply with the same application procedures as resident brokers, including submitting the necessary forms and paying the required fees.

  • Legal Service Process:

    • The bill establishes that licensed nonresident surplus line brokers will be considered to have appointed the commissioner of insurance as their agent for receiving legal process. This means that legal documents can be served to the commissioner on behalf of the nonresident broker.

  • Effective Date:

    • The act became effective immediately upon its enactment on May 6, 2025.

Impact

  • Who is Affected:

    • The bill primarily affects nonresident surplus line brokers who wish to operate in Alabama. It also impacts the Department of Insurance, which will oversee the licensing process.

  • Financial Implications:

    • According to fiscal notes associated with the bill, it is not expected to have a direct impact on state or local funding.

Legislative Timeline

  • Introduced: February 12, 2025
  • Passed Senate: March 6, 2025
  • Passed House: April 29, 2025
  • Enacted: May 6, 2025

Conclusion

Senate Bill 97 streamlines the licensing process for nonresident surplus line brokers in Alabama by removing the requirement for an additional surety bond. This legislative change is designed to enhance the accessibility of insurance services in the state while ensuring compliance with national standards.

Compiled from official sources — confirm details with the bill’s official record.

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