On April 26, 2016, Alabama Governor Robert J. Bentley approved
House Bill No. 270, which revised Alabama's Captive Insurers
Act. The revised Captive Insurers Act went into effect on July 1,
2016, and included amendments to several provisions of the act to
make it easier to establish captives and provides tax-friendly
measures for captives. In particular, we note that the amended act
lowers capital requirements, allows captives to be formed as any
form of business entity, provides for a 60-day provisional license
in certain circumstances, and caps premium taxes. Under
Alabama's 2006 Captive Insurers Act, captives could only be
formed as corporations. Norman Chandler, President of the Alabama
Captive Association, has stated that "The newly revised
Captive Act will significantly help the captive industry grow in
Alabama."
