(a) Captive insurance companies shall not be required to make any annual report except as provided in this chapter. (b) Prior to March 1 of each year, each captive insurance company shall submit to the commissioner a report of its financial condition, verified by oath of two of its executive officers. Except as provided in Section 27-31B-6, each captive insurance company shall report using statutory accounting principles, unless the commissioner approves the use of generally accepted accounting principles, with any useful or necessary modifications or adaptations thereof required or approved or accepted by the commissioner for the type of insurance and kinds of insurers to be reported upon, and as supplemented by additional information required by the commissioner. Except as otherwise provided, each association captive insurance company and each industrial insured captive insurance company insuring the risks of an industrial insured group defined in Section 27-31B-2(19)b. shall file its report in the form required by Section 27-3-26. Each risk retention group shall file its report in the form required by Section 27-3-26 and shall comply with all filing requirements set forth in this title as well as rules and bulletins of the Alabama Department of Insurance applicable to casualty insurers domiciled in the state. The commissioner shall by rule propose the forms in which pure captive insurance companies and industrial insured captive insurance companies insuring the risks of an industrial insured group defined in Section 27-31B-2(19)a. shall report. Section 27-31B-3(d)(4) shall apply to each report filed pursuant to this section, except that Section 27-31B-3(d)(4) shall not apply to reports filed by industrial insured captive insurance companies insuring the risks of industrial insured groups as defined in Section 27-31B-2(19)b. (c) Any pure captive insurance company or any industrial insured captive insurance company insuring the risks of industrial insured groups as defined in Section 27-31B-2(19)a. may make written application for filing the required report on a fiscal year-end. If an alternative reporting date is granted, the annual report shall be due 60 days after the end of the fiscal year and, in order to provide sufficient detail to support the premium tax return, the pure captive insurance company or industrial insured captive insurance company insuring the risks of industrial insureds as defined in Section 27-31B-2(17) shall file, prior to March 1 of each year for each calendar year-end, pages 1, 2, 3, and 5 of the “Captive Annual Statement - Pure or Industrial Insured,” verified by oath of two of its executive officers. (d) Sixty days after the fiscal year-end, a branch captive insurance company shall file with the commissioner a copy of all reports and statements required to be filed under the laws of the jurisdiction in which the alien captive insurance company is formed, verified by oath of two of its executive officers. If the commissioner is satisfied that the annual report filed by the alien captive insurance company in its domiciliary jurisdiction provides adequate information concerning the financial condition of the alien captive insurance company, the commissioner may waive the requirement for completion of the captive annual statement for business written in the alien jurisdiction. (e) Annually on or before June 30, an audited statement of the captive insurer’s financial condition shall be prepared in accordance with generally accepted accounting principles in the United States for the preceding calendar year ending December 31, which shall include all of the following: (1) The report of an independent certified public accountant. (2) A balance sheet. (3) An income statement. (4) A statement of cash flows. (5) A statement of changes in capital and surplus. (6) Notes to financial statements. (f) An annual actuarial certification of loss reserves and loss expense reserves which includes an opinion of the adequacy of the loss reserves and loss expense reserves of the captive insurer, in a format acceptable to the commissioner, shall be filed with the report required in subsection (b). The person that certifies the reserves shall be approved by the commissioner and shall be a qualified actuary as defined in the National Association of Insurance Commissioners Quarterly and Annual Statement Instructions-Property/Casualty.
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