SB2 Alabama 2011 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsor

Trip Pittman

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

Creates the Property Insurance Clarity Act to require insurers to report policy and premium data to the Alabama Department of Insurance and publish aggregate, county- and ZIP code–level information and actuarial details.

What This Bill Does

Insurers transacting business in Alabama must annually report to the Department of Insurance data on homeowners and commercial property policies, including the number of policies written, direct earned premiums, and direct incurred losses, broken down by county and ZIP code. The Department will compile a statewide database and post aggregate data on its website by year, separated for homeowners and commercial property, and will include a perils breakdown. The Department will also post a general description of the actuarial model used for risk and related data and the rate-making methodology allowed to establish rates; penalties are specified for noncompliance, including daily fines and possible suspension from selling new policies until compliant, with extensions allowed for reasonable cause.

Who It Affects

• Insurance companies transacting business in Alabama: must submit annual policy and premium data by Oct 1 for the prior year, face daily fines for noncompliance, and may be suspended from selling new policies if not in compliance.
• Alabama Department of Insurance: responsible for collecting, compiling, and publishing the data, maintaining the statewide database, and enforcing penalties.
• Residents and policymakers in Alabama: will gain access to aggregated, county- and ZIP code–level data and actuarial/rate-making information through the department's website, increasing transparency.

Key Provisions

• Establishes the Property Insurance Clarity Act (SB2) to require insurers to provide policy and premium information to the Alabama Department of Insurance.
• Insurers must annually report, by October 1, data on direct incurred losses, number of policies written, and direct earned premiums for homeowners and commercial property, aggregated by county and ZIP code, for the prior year.
• The Department of Insurance will compile a statewide database and post on its website the aggregate data by county, ZIP code, and calendar year, for homeowners and commercial property, including a perils breakdown (fire, non-catastrophe wind/hail, catastrophe wind/hail, water, theft, liability, tornado, wind-driven water).
• The Department will post a general description of the actuarial model used for risk and related data, and the rate-making methodology allowed for setting rates.
• Penalties for noncompliance include $2,500 per day in fines, suspension from selling new policies after a 30-day noncompliance period, and funds from fines going to the State General Fund; extensions of up to 90 days may be granted for reasonable cause.

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