HB271 Alabama 2011 Session

Summary

Primary Sponsor

Randy Davis

Republican

Co-Sponsors

Joe FaustAlan BakerSteve McMillan

Session

Regular Session 2011

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, Property Insurance Clarity Act

Summary

The bill would require Alabama insurance companies to report homeowners and commercial property policy data to the Department of Insurance, which would publish aggregated data by county and ZIP on its website and provide the actuarial rate-making model used, with penalties for noncompliance.

What This Bill Does

It requires annual submission of policy data, premiums, and losses by county and ZIP for homeowners and commercial properties, for the prior year. The Department of Insurance would compile a statewide database and post aggregated data by county/ZIP and year, including a breakdown by certain perils. It also requires posting a general description of the rate-making methodology. If a company fails to comply, penalties include daily fines (up to $2,500 per day after a 90-day extension), potential suspension from selling new policies, and funds collected go to the State General Fund; extensions can be granted for up to 90 days for reasonable cause, and data start from 1990.

Who It Affects

• Insurance companies transacting business in Alabama would must report annual policy, premium, and loss data by county and ZIP, and could face financial penalties or suspension from selling new policies for noncompliance.
• The public and policymakers would gain online access to aggregated insurance data and the department's rate-making methodology, improving transparency and informing policy discussions.

Key Provisions

• Annual submission requirement for insurers to provide homeowners and commercial property data (policies written, direct earned premiums, direct incurred losses) by county and ZIP for the prior calendar year, due on October 1.
• The Department of Insurance must compile a statewide database and post aggregated data by county/ZIP and calendar year for homeowners and commercial properties, including the specified data points and a perils breakdown (fire, wind/hail, water, etc.).
• The department must post a general description of the rate-making methodology used for homeowners and commercial property rates.
• Insurers must provide data back to January 1, 1990; the department will post aggregate totals by year, county, and ZIP.
• Penalties include up to $2,500 per day for noncompliance after a 90-day extension, with funds deposited to the State General Fund; failure to comply after 30 days beyond the extension can lead to suspension from selling new policies.
• The act becomes effective on the first day of the third month after passage and governor approval.

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

Subjects

Insurance Department