SB509 Alabama 2011 Session

Summary

Primary Sponsor

Phillip W. Williams

Republican

Session

Regular Session 2011

Title

Property and casualty insurance, unilateral changes to deductibles for property and casualty insurance policies by insurers, precluded, notice, consent by named insureds

Summary

The bill would stop insurers from unilaterally changing a property or casualty deductible without notice and consent from the named insured.

What This Bill Does

It requires insurers to provide written notice to the named insured at least 60 days before the policy expiration if they intend to change a deductible. If notice is not provided, the current deductible remains in effect until notice is given or replacement coverage becomes effective. If the insured agrees to the deductible change, the change becomes effective the day after the prior policy expires. Deductible changes can only occur at renewal of the policy.

Who It Affects

• Named insureds on property or casualty policies — must be given written notice and may consent to deductible changes; otherwise the current deductible stays in place.
• Insurers — must provide written notice at least 60 days before expiration and may only change deductibles at renewal, with protections if notice is not given.

Key Provisions

• Insurers may not unilaterally change the deductible without written notice to the named insured.
• Notice must be provided at least 60 days before the policy expiration date.
• If notice is not provided, the deductible remains in effect until notice is provided or replacement coverage becomes effective.
• If the insured accepts the deductible change, the change becomes effective the day after the prior policy expires.
• Deductible changes may only occur at the time of renewal of the policy.
• The act becomes effective on the first day of the third month following its passage and approval by the Governor, or its becoming law.

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