HB724 Alabama 2012 Session

Summary

Primary Sponsor

Yvonne Kennedy

Democrat

Co-Sponsors

James E. BuskeyJamie IsonJim BartonNapoleon BracyDavid Sessions

Session

Regular Session 2012

Title

Property insurance, hurricane deductible only applied on damages from named hurricane or tropical storm, certain personal lines insurance policies to offer voluntary buy-back provision, penalties

Summary

HB724 would limit hurricane deductibles to damage from named storms, require a voluntary buy-back option for wind/hail deductibles in personal lines, and establish penalties for violations.

What This Bill Does

It prevents hurricane deductibles from applying to property damage unless the damage comes from a named hurricane or named tropical storm. For personal lines policies that offer a percentage deductible for winds and hail from non-named storms, it requires a voluntary buy-back provision up to 1% of dwelling limits. The Insurance Commissioner can grant waivers from the buy-back requirement under a formal process. Violations can incur penalties up to $10,000 per violation and possible license suspension or revocation, and the Department of Insurance will set the necessary rules. The act becomes effective immediately after passage and governor approval.

Who It Affects

• Property insurance policyholders/homeowners would be protected from hurricane deductibles for non-named-storm damage and may be offered a buy-back option for wind/hail deductibles in certain policies.
• Insurance companies offering personal lines with wind/hail percentage deductibles would need to provide the buy-back option (and may seek waivers) and could face penalties for violations.

Key Provisions

• Prohibits hurricane deductibles for property damage unless caused by a named hurricane or named tropical storm.
• Requires personal lines policies with a percentage wind/hail deductible (for non-named-storm damage) to offer a voluntary buy-back provision capped at 1% of dwelling limits, actuarially sound.
• Provides a waiver process for the buy-back requirement, via formal filing and justification to the Insurance Commissioner.
• Establishes penalties for violations, up to $10,000 per violation, and possible license revocation or suspension.
• directs the Department of Insurance to create necessary rules to implement the section.
• Effective immediately upon passage and governor's 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

Property, Real and Personal