SB399 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

SB399 creates the Property Insurance Clarity Act, requiring insurers in Alabama to report policy and premium data to the Department of Insurance and publicly post aggregated, county- and ZIP code‑level information for homeowners and commercial property policies, with penalties for noncompliance.

What This Bill Does

Insurers transacting business in Alabama must annually submit to the Department of Insurance the total direct incurred losses, number of policies written, and direct earned premiums for homeowners and commercial property policies, broken down by county and ZIP code for the prior year. The department will build and post a statewide database with aggregate data for homeowners and commercial property, by year, and will include perils data and other related metrics on its website. The department will also publish a general description of the rate-making methodology and the actuarial model used for risk data; penalties apply for noncompliance, including daily fines and possible suspension from selling new policies, with funds going to the State General Fund; the act becomes effective a few months after passage.

Who It Affects

• Insurance companies transacting business in Alabama: must provide required policy and premium information and face penalties for noncompliance.
• Alabama Department of Insurance: collects, compiles, and posts aggregate data; provides descriptions of rate-making methodology and actuarial models.
• Public, including homeowners and commercial property policyholders and researchers: will have access to publicly posted, aggregated data by county and ZIP code.
• Counties and ZIP code regions: data will be broken out and published by these geographic areas, informing local market information.

Key Provisions

• Creates the Property Insurance Clarity Act and requires insurers to provide policy and premium information to the Alabama Department of Insurance.
• The department must post on its website aggregate data for homeowners and commercial property policies, including number of policies written, direct earned premiums, and direct incurred losses, broken down by county and ZIP code.
• Data must be submitted annually by October 1 for the prior calendar year; the department must compile a statewide database and post the data by January 15 of the following year, with yearly updates.
• The posted data must include perils breakdown (fire, non-catastrophe wind/hail, catastrophe wind/hail, water, theft, liability, tornado, wind-driven water) for both homeowners and commercial policies.
• The department must also post a general description of the rate-making methodology used for homeowner's and commercial property rates and describe the actuarial model used for risk data.
• Data collection starts from 1990, with aggregate totals posted by year; the department will publish county/ZIP code data accordingly.
• Penalties for noncompliance include a $2,500 per day fine after a 90-day extension, suspension from selling new policies if noncompliance persists beyond extension, and funds go to the State General Fund; the department staff have no liability for actions taken under the act.
• 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 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance Department