HB113 Alabama 2012 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2012

Title

Insurance Department, insurance producers licensure further provided for, require licensees notification of changes in addresses, Secs. 27-7-1, 27-7-5, 27-7-14.1, 27-7-17, 27-7-37, 27-8A-1, 27-8A-6 am'd; 27-7-4.4, 27-22A-1 to 27-22A-7, inclusive, added; 27-7-20, 27-7-21 repealed

Summary

HB113 reorganizes Alabama's insurance producer licensing by removing auto and industrial fire lines, adding travel and crop as limited lines, creating portable electronics insurance with vendor licensing, and requiring fingerprint checks for new applicants, with a transition plan for existing licenses and an effective date of January 1 after passage.

What This Bill Does

The bill eliminates the insurance producer lines of authority for automobile and industrial fire and moves existing licenses to the appropriate new lines upon renewal. It adds travel and crop insurance as limited lines and expands exceptions for prelicensing and continuing education, including a grandfather provision. It creates a new portable electronics insurance framework where vendors must be licensed and supervised, with consumer disclosures, billing rules, and termination provisions. It requires fingerprints and criminal history checks for all new resident applicants, allows a centralized license registry, and requires licensees to notify the commissioner of address changes within 30 days. It also provides transition rules for existing licenses, repeals two outdated sections, and sets an effective date for the changes.

Who It Affects

• Insurance producers and service representatives in Alabama: they will see changes to lines of authority (auto and industrial fire removed; travel and crop added as limited lines), new fingerprint requirements for applicants, address-change reporting within 30 days, and a transition of existing licenses on renewal; continuing education exemptions and renewal certification changes will also apply.
• Vendors and customers involved in portable electronics insurance: vendors must obtain limited lines licenses, supervise their staff, provide required training and disclosures to customers, handle billing under specified rules, and face penalties for violations; customers gain defined coverage terms, clear enrollment disclosures, and termination rules.

Key Provisions

• Eliminates the automobile and industrial fire lines of authority for insurance producers and automatically transitions those licenses to personal lines and property lines on renewal.
• Adds travel and crop insurance as limited lines; creates new licensing pathways and responsibilities for these lines.
• Creates Chapter 22A, Portable Electronics Insurance: defines terms, requires vendor licensure, supervising entities, training, and customer disclosures, plus billing and termination rules for portable electronics insurance.
• Requires fingerprints and criminal history checks for all initial resident insurance producer applicants; authorizes centralized fingerprint registry and potential implementation delays up to 24 months.
• Requires licensees to notify the commissioner of changes in mailing or email addresses within 30 days and authorizes centralized license registries and standardized fee collection.
• Repeals Sections 27-7-20 and 27-7-21; redefines renewal and transition procedures, and aligns license appointments and renewals with the new line structure.

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 Department