SB5 Alabama 2010 1st Special Session

Summary

Primary Sponsor

Cam Ward

Republican

Co-Sponsors

Trip PittmanArthur OrrScott BeasonTom Whatley

Session

First Special Session 2010

Title

Campaign finance disclosure reports, electronic filing required, Secretary of State to maintain electronic database, Sec. 17-5-8 am'd.

Summary

SB5 would limit hurricane deductibles to damage from named storms, require a voluntary buy-back option for non-hurricane wind/hail deductibles in personal policies, and establish penalties and a waiver process overseen by the Insurance Commissioner.

What This Bill Does

It prohibits applying a hurricane deductible for property damage unless the damage came from a named hurricane or tropical storm. It requires personal lines policies with a wind/hail percentage deductible (from non-hurricane sources) to offer a voluntary buy-back provision up to 1% of the dwelling limits. The Commissioner of Insurance can grant waivers from the buy-back requirement under a defined filing and documentation process. Violations can result in penalties up to $10,000 per violation and possible license revocation or suspension, with the Department of Insurance issuing rules to implement the act.

Who It Affects

• Homeowners and other policyholders with dwelling or building insurance who could be affected by deductible rules and the optional buy-back provision.
• Insurance companies offering personal lines policies with wind/hail percentage deductibles, who must implement the buy-back provision, may seek waivers, and face penalties or license actions for violations.

Key Provisions

• Prohibits hurricane deductibles for property damage unless the damage is from a named hurricane or named tropical storm.
• Requires personal lines policies with a wind/hail percentage deductible from non-hurricane sources to offer a voluntary buy-back provision up to 1% of the dwelling limits.
• The Commissioner of Insurance may grant waivers from the mandatory buy-back provision following a formal filing and supporting documentation demonstrating it is in the best interest of Alabama policyholders.
• Violations of the new rules carry penalties up to $10,000 per violation and can lead to license revocation or suspension after a hearing.
• The Department of Insurance will create rules to implement and administer the section.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Elections