HB720 Alabama 2012 Session

Summary

Primary Sponsor

Yvonne Kennedy

Democrat

Co-Sponsors

James E. BuskeyRandy DavisVictor GastonChad FincherJamie IsonJim BartonNapoleon BracyDavid Sessions

Session

Regular Session 2012

Title

Homeowners insurance, carriers required to disclose actual costs of each item of coverage in annual renewal policy package, both as cost per $1,000 coverage and actual cost of each item of coverage, Homeowner's Insurance Cost Transparency Act

Summary

The bill would require homeowners insurance carriers to disclose the actual costs of each coverage item in the annual renewal package, shown per $1,000 of coverage and as a total cost.

What This Bill Does

If enacted, the bill would require carriers to include with each renewal a clear written disclosure of the costs of every coverage type, expressed as the cost per $1,000 of coverage and as the actual total cost. It allows the Insurance Commissioner to adopt a standard form for presenting these disclosures to ensure consistency. The rule applies to policies for various dwelling types, including single-family, multi-family, mobile homes, and manufactured homes. The act would take effect on the first day of the third month after it becomes law.

Who It Affects

• Homeowners with homeowner's policies: will see an itemized breakdown of costs for each coverage type in their renewal package.
• Homeowners insurance carriers: must prepare and include the disclosures in renewal packages and comply with a standard form.

Key Provisions

• Section 2(a): Requires renewal package disclosures of the actual costs of each item of coverage, expressed as rate per $1,000 and as the actual total cost.
• Section 2(b): Provides an example layout showing how costs may be disclosed per coverage item (e.g., wind, fire, theft, liability) with amounts.
• Section 2(c): Defines homeowner's policy to include various dwelling types, including single-family, multi-family, mobile homes, and manufactured homes.
• Section 2(d): Authorizes the Insurance Commissioner to adopt a standard form for the disclosures.
• Section 3: Establishes the act's effective date as the first day of the third month after passage and approval.

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