HB477 Alabama 2010 Session

Summary

Primary Sponsor

James O. Gordon

Democrat

Co-Sponsors

Jim BartonJamie IsonSteve McMillanJoe FaustHarry ShiverVictor GastonJames E. BuskeyYvonne KennedySpencer Collier

Session

Regular Session 2010

Title

Property insurance, hurricane deductible only applied on damages from named hurricane or tropical storm, certain personal lines insurance policies to offer voluntary buy-back provision, penalties

Summary

HB477 would limit hurricane deductibles to damage from named storms, require voluntary buy-back provisions for non-named-storm wind/hail deductibles in personal lines, and impose penalties for violations.

What This Bill Does

It prohibits applying a hurricane deductible or wind/hail percentage deductible to property damage unless the damage is from a named hurricane or named tropical storm. For personal lines with wind/hail deductibles from non-named storms, it requires a voluntary buy-back provision that is actuarially sound and not more than 1% of the dwelling limit, with a commissioner-approved waiver process. It also sets penalties for violations (up to $10,000 per violation and possible license suspension or revocation) and requires rules to be created to implement the law, effective immediately.

Who It Affects

• Homeowners and other property owners in Alabama, whose insurance deductibles for hurricane or wind/hail damage would be limited to named storms.
• Insurance companies and other issuers of property and personal lines policies, which would need to offer voluntary buy-back provisions for non-named-storm wind/hail deductibles and may face penalties or license action for violations.

Key Provisions

• Prohibits hurricane deductibles or wind/hail percentage deductibles from applying to property damage unless caused by a named hurricane or named tropical storm, for dwellings or other buildings.
• Requires personal lines policies with non-named-storm wind/hail percentage deductibles to offer a voluntary buy-back provision (actuarially sound, not exceeding 1% of dwelling limits), with a commissioner-approved waiver process and penalties for violations.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Property, Real and Personal