HB454 Alabama 2011 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2011

Title

Insurance, title insurance rating bureau, established, fees, regulation, Secs. 27-13-130, 27-13-131, 27-13-132, 27-13-133, 27-13-134, 27-13-135, 27-13-136 added; Sec. 27-13-2 am'd.

Summary

HB454 would allow title insurers to form a rating bureau to set and file title insurance rates for its members under state oversight.

What This Bill Does

It creates a Title Insurance rating bureau and allows it to file title insurance premium rates on behalf of its member insurers after meeting required qualifications. The bureau would need authorization from the Commissioner of Insurance and must renew that authority annually, with application and renewal fees capped at $200. It also sets membership rules, an appeal process for denials, and requirements about withdrawals or expulsions, and prohibits use of the bureau's rates by non-members or expelled members; all collected fees go to the State Treasury Insurance Department Fund.

Who It Affects

• Title insurers that join or form a rating bureau would have their rates filed on their behalf and must follow the bureau's admission and operating rules.
• The Commissioner of Insurance, the Alabama Insurance Department, and the State Treasury would oversee authorization, collect fees, enforce membership standards, and regulate who may use the rating bureau's rates.

Key Provisions

• Creates Article 6 Title Insurance with sections 27-13-130 to 27-13-136 establishing a rating organization for title insurance.
• The commissioner may authorize a rating organization to file title insurance premium rates on behalf of its member or subscriber insurers after qualification.
• Fees: an initial application fee and annual renewal fee not to exceed $200 each.
• Membership and operation requirements: insurers may become members; no unfair discrimination; denial appeals process; 10-day notice requirement for withdrawal or expulsion; readmission upon payment of delinquent fees; expelled members cannot use the bureau's rates.
• Non-member insurers may not use rates or rating systems of the rating organization.
• All fees collected are deposited into the State Treasury to the credit of the Insurance Department Fund.
• Effective date: the act becomes effective on the first day of the third month after passage.
• Amends Section 27-13-2 to clarify that the commissioner administers rates for all insurance except life/health/accident and title insurance.

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