HB166 Alabama 2012 Session

This bill would provide for the Alabama Homeowners Bill of Rights Act.

This bill would require insurance carriers to provide to homeowner policyholders an outline of policy coverage and a standard checklist of policy contents at the time of sale and annually thereafter; provide specific rights of policyholders regarding pricing, advertising, financial assurances, readable policies, balanced regulation by the Department of Insurance, inquiring about the licensing status of insurance personnel, cancellation rights, timely claim payment, the receiving of copies of certain reports relating to claim estimates, filing complaints, fair treatment, and rejection of settlement offers.

This bill would specify that the act does not create a civil cause of action, and to provide that violations of this act shall be punishable as a violation of the Unfair Trade Practices Act.

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

To provide for the Alabama Homeowners Bill of Rights Act; to require insurance carriers to provide to homeowner policyholders an outline of policy coverage and a standard checklist of policy contents at the time of sale and annually thereafter; to provide specific rights of policyholders regarding pricing, advertising, financial assurances, readable policies, balanced regulation by the Department of Insurance, inquiring about the licensing status of insurance personnel, cancellation rights, timely claim payment, the receiving of copies of certain reports relating to claim estimates, filing complaints, fair treatment, and rejection of settlement offers; to specify that violations of this act shall be punishable as a violation of the Unfair Trade Practices Act; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.