Examination Division

Financial Examiners and Analysts

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.