The mission of the Financial Examiners Division is to assist the Commissioner with
the regulation of the solvency of insurance companies subject to Alabama Insurance
laws and regulations through the activities of surveillance, monitoring, analysis
and examination, all performed in accordance with nationally recognized standards
promulgated by the National Association of Insurance Commissioners (NAIC) and other
regulatory and professional accounting agencies. Through these procedures, the Division
provides technical assistance and factual information as a basis for determining
regulatory action, thus serving as the first line of defense between Alabama's citizens
and potentially troubled insurance companies.
The Examination Division also performs the following functions:
- Examines Financial Condition of Domestic Companies, HMOs and Fraternal Benefit Societies
according to statutory requirements
- Files and reviews annual statements for licensed companies
- Collects premium tax and audits premium tax returns in excess of 254 million dollars
for the 2010 fiscal year
- Regulates approximately 1400 licensed companies
- Reviews, Issues, or Rejects Licenses on Applications of New Companies, which includes
Insurers, HMOs, Fraternals, Motor Clubs, Premium Finance Companies, Prepaid Legal
and Dental Service Corporations
Market Conduct Examiners and Analysts
The mission of the Market Conduct
Section is to assist the Commissioner in protecting the insurance consumer and
ensuring that policyholders and claimants are treated fairly and equitably. The
Market Conduct Section conducts examinations in accordance with the guidelines
established by the National Association of Insurance Commissioners (NAIC) and
other recognized agencies and institutions. The Market Conduct Section prepares
reports to the Commissioner disclosing factual findings and making
recommendations for corrective action when necessary.