HB728 Alabama 2012 Session

Summary

Primary Sponsor

Joseph C. Mitchell

Democrat

Co-Sponsors

Randy DavisVictor GastonJoe FaustChad FincherSteve McMillanJim BartonNapoleon BracyDavid Sessions

Session

Regular Session 2012

Title

Insurance, catastrophe wind coverage, non-catastrophe wind coverage, non-wind coverage homeowners and dwelling insurance, premium detail required by personal property insurer

Summary

HB728 would require personal property insurers to provide separate premium details for catastrophe wind, non-catastrophe wind, and non-wind coverage on homeowners and dwelling policies, plus expanded reporting and credit-based pricing disclosures.

What This Bill Does

It would require new and renewal homeowners and dwelling policies to show premium detail separately for catastrophe wind, non-catastrophe wind, and non-wind coverages on the declarations page, and rate filings with 2014 effective dates to be filed with the Department of Insurance and shown in the rate manual. The Department of Insurance would collect and publish annual data on policy counts, total insured values, earned premiums, and incurred losses by coverage type and by owner-occupied vs tenants/condominiums, by county and ZIP code. If an insurer uses a consumer's credit history for pricing, it must inform the insured about the option to re-rate with updated credit information after at least 12 months, and re-rating must be performed if it lowers the premium; if increases would occur, the rate manual must specify how and when increases apply. Rate filings after 2014 would have to show credit rating factors separately for each coverage type and reflect the predictability of future losses, with those factors displayed in the rate manual.

Who It Affects

• Homeowners and dwelling policyholders would see a breakdown of premiums by catastrophe wind, non-catastrophe wind, and non-wind coverages on their declarations page and would have the option to request re-rating using updated credit information.
• Personal property insurers (and the Alabama Department of Insurance) would implement new reporting and pricing requirements, including separate rate filings by coverage type, annual data submissions to the Department, and disclosures related to credit-based pricing.

Key Provisions

• Premium detail disclosure: New and renewal homeowners and dwelling policies must show separate premiums for catastrophe wind coverage, non-catastrophe wind coverage, and non-wind coverage on the declarations page; 2014-rate filings must be filed with the Department of Insurance and shown in the rate manual.
• Department reporting: Insurers must annually provide policy counts, total insured values, earned premiums, and incurred losses broken out by coverage type and by owner-occupied vs tenants/condominiums, by county and ZIP code (starting with 2012 data).
• Credit-based pricing disclosure and re-rating: If an insurer uses credit history in pricing, it must inform insureds about the option to re-rate with updated credit information after at least 12 months, and re-rating must be performed if it lowers the premium; the rate manual must specify how higher-premium results are handled.
• Credit rating factor separation: Rate filings after 2014 must show credit rating factors separately for non-wind coverages, non-catastrophe wind, and catastrophe wind, with factors supported statistically and displayed in the rate manual.
• Effective date: The act becomes effective on the first day of the third month after 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

Insurance