HB123 Alabama 2012 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2012

Title

Insurance rate increase by personal line insurer, may take effect immediately unless objected to by the Commissioner of Insurance

Summary

HB123 would let certain personal-line insurance rate filings take effect on the filing date (expedited), but only within a 12% statewide cap and with oversight protections.

What This Bill Does

Allows personal-line insurers to file rate changes that can take effect when filed, as long as the total statewide change for all affected coverages does not exceed 12%. Limits one expedited rate filing per insurance line per year unless the combined filings still keep the 12% cap. If the Insurance Commissioner finds a filing unreasonably high, inadequate, or unfairly discriminatory, he can issue an order detailing violations and set a future date when the filing no longer takes effect. For increases, insurers must provide at least 30 days’ advance notice before renewal; renewal notices or bills showing the new premium are considered compliant, and paying the premium is treated as consent.

Who It Affects

• Personal-line insurers authorized to do business in Alabama, who may file expedited rate changes up to the 12% cap and must follow notice and renewal requirements.
• Policyholders with personal-line coverage in Alabama, who could see faster changes in premiums and must receive advance notices and renewal notices reflecting rate changes.

Key Provisions

• Expedited rate filings for personal lines may take effect on the filing date if the aggregate statewide change across all affected coverages is no more than 12%.
• Cap applies to statewide aggregate changes and is not calculated per individual insured; only one expedited filing per line per insurer per 12 months unless the combined filings remain within the 12% cap.
• If the Commissioner determines a filing is unreasonably high, inadequate, or unfairly discriminatory, he may issue a detailed order and designate a future date when the filing becomes ineffective; orders issued more than 30 days after filing are prospective and do not affect contracts already in force.
• No rate increase within the cap may be applied to an existing policy except at renewal or conditional renewal, with at least 30 days’ advance notice to the named insured; renewal notices or bills disclosing the new renewal premium are considered compliant, and payment of the premium constitutes consent.

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