SB463 Alabama 2011 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2011

Title

Workers' compensation insurance, volunteer fire departments and rescue squads, Insurance Department to set rates, based on certain annual payroll per person, Sec. 25-5-50 am'd.

Summary

SB463 would cap the annual payroll used to set workers’ compensation rates for volunteer firefighters and rescue squad members at $300 per person and create voluntary coverage with defined wage rules.

What This Bill Does

The bill requires the Insurance Commissioner to set a maximum annual payroll per volunteer firefighter or rescue squad member of $300 for calculating workers' compensation rates. It allows state-certified volunteer fire departments and rescue squads to purchase workers' compensation insurance on a voluntary basis, but coverage is not mandatory. For injuries, the wage used to determine benefits would be 66 2/3% of the worker’s regular pay or 66 2/3% of the minimum wage, whichever is higher, and the regular employer would not be liable for a compensable injury; corporate officers may elect to be exempt from coverage (with an annual option and potential revocation), and the act would take effect immediately upon governor's approval.

Who It Affects

• Volunteer fire departments and rescue squads: can purchase workers' compensation insurance voluntarily; rates would be calculated using the $300-per-member payroll cap.
• Volunteer firefighters and rescue squad members: wage-based benefits would be computed at 66 2/3% of earnings (or minimum wage), and employers would not be liable for compensable injuries.
• Corporate officers of volunteer organizations: may elect to be exempt from workers' compensation coverage (with annual timing) and may revoke the exemption later.
• Regular employers of volunteers: not liable for compensable injuries to volunteer firefighters or rescue squad members under this section.

Key Provisions

• Amends Section 25-5-50 to establish voluntary coverage for certified volunteer departments and rescue squads and to set a maximum annual payroll cap of $300 per member for rate calculations.
• The Insurance Commissioner must set the maximum payroll per firefighter or rescue squad member (cap: $300/year) for determining workers' compensation rates for such departments.
• Voluntary coverage: certified volunteer departments and legally organized rescue squads may obtain workers' compensation insurance, but it is not mandatory.
• Wage calculation for injuries: average weekly wage equals 66 2/3% of the member's regular earnings or 66 2/3% of the minimum wage, whichever is greater.
• Employer liability: the regular employer of a volunteer firefighter or rescue squad member is not liable for a compensable injury under this section.
• Corporate officer exemption: corporate officers may elect to be exempt from coverage and may revoke the exemption later.

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