HB330 Alabama 2011 Session

Summary

Primary Sponsor

Randy Davis

Republican

Co-Sponsors

Victor GastonHarry ShiverJoe FaustChad FincherAlan BakerSteve McMillanJamie IsonKerry Rich

Session

Regular Session 2011

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

HB330 would limit hurricane deductibles to damage from named hurricanes or tropical storms, require a voluntary buy-back option for non-named wind/hail deductibles on personal lines, and impose penalties for violations.

What This Bill Does

It prohibits applying a hurricane deductible to property damage unless the damage comes from a named hurricane or named tropical storm. For personal lines policies that use a percentage deductible for winds and hail from non-named storms, it requires a voluntary buy-back provision that is actuarially sound and no greater than 1% of dwelling limits. The Insurance Commissioner can grant waivers from the buy-back requirement if justified, and violations can lead to penalties up to $10,000 per violation plus possible license suspension or revocation; the Department of Insurance will issue necessary rules. The measure takes effect immediately after passage and governor approval.

Who It Affects

• Policyholders in Alabama with property insurance who would see hurricane deductibles limited to named-storm damages and gain a voluntary buy-back option for non-named wind/hail deductibles.
• Insurance companies offering personal lines policies with wind/hail deductibles, who must provide the buy-back option, may pursue waivers, and could face penalties for noncompliance.

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 percentage deductible for winds and hail from non-named storms to offer a voluntary, actuarially sound buy-back provision no greater than 1% of dwelling limits.
• Allows the Insurance Commissioner to grant waivers from the buy-back requirement through a formal filing and supporting documentation process.
• Penalties for violations include up to $10,000 per violation and possible license revocation or suspension.
• The Department of Insurance must promulgate rules to implement and administer the act.
• The act takes effect immediately following 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

Property, Real and Personal