HB713 Alabama 2010 Session

Summary

Primary Sponsor

James O. Gordon

Democrat

Co-Sponsors

James E. BuskeyRandy DavisVictor GastonJoe FaustChad FincherSteve McMillanJim Barton

Session

Regular Session 2010

Title

Insurance Department, required to collect information from insurance companies on homeowners insurance policies and premiums by counties and Zip Code and post aggregate information on website, penalties for insurance companies not in compliance, Department of Insurance Transparency Act

Summary

HB713 would create the Department of Insurance Transparency Act to require insurers to report homeowners policy data and premiums and to publish aggregate data and actuarial models on the Department of Insurance website.

What This Bill Does

Insurers doing business in Alabama would annually report to the Department of Insurance the total homeowners claims (pending or paid), number of policies, and premiums collected, by county and ZIP code, due October 1 each year. The Department would compile a statewide database and publish aggregate totals for premiums, claims, and policies by county and ZIP code for all insurers, including a perils breakdown (fire, hail, tornado, named storms, and flood) and updated annually. The Department would also post a comprehensive description of the actuarial model (or blending of models) used to calculate homeowners' premiums, by county or ZIP code. If an insurer misses the deadline or falls out of compliance, the Department can levy a daily $2,500 fine, may grant extensions up to 90 days for reasonable cause, and could suspend the sale of new policies if compliance remains outstanding; fines go to the State General Fund.

Who It Affects

• Insurance companies transacting business in Alabama — must report detailed homeowners data by county and ZIP and could face daily fines and suspension for noncompliance.
• Alabama Department of Insurance — collects, maintains, and publishes the data, and enforces penalties.
• Alabama residents and homeowners — gain access to public, aggregated data on homeowners policies, premiums, and claims by county/ZIP and perils.

Key Provisions

• Creates the Department of Insurance Transparency Act to require insurers to provide homeowners policy and premium information to the Alabama Department of Insurance.
• Insurance companies must annually submit totals for homeowners claims (pending/paid), number of policies, and premiums by county and ZIP, due October 1 each year; data include perils categories Fire, Hail, Tornado, Named storms, and Flood.
• The Department will maintain a statewide database and post aggregate totals by county and ZIP on its website, with updates, and post a comprehensive description of the actuarial model used to calculate premiums (by county/ZIP).
• Actuarial information must be provided by ZIP Code for each county or grouped counties; data from 1990 onward will be aggregated and posted by year.
• Noncompliance penalties include a $2,500 per day fine until compliance, extensions up to 90 days for reasonable cause, and suspension from selling new policies if still noncompliant after extension; fines go to the State General Fund.
• Effective date is the first day of the third month after passage and governor approval.

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

Subjects

Insurance Department