SB210 Alabama 2012 Session

Summary

Primary Sponsor

Del Marsh

Republican

Co-Sponsors

Ben H. BrooksTrip PittmanRusty GloverGeorge M. “Marc” KeaheyVivian Davis FiguresMark Slade Blackwell

Session

Regular Session 2012

Title

Insurance Department, required to collect information from insurance companies on homeowners insurance policies and premiums by counties and zip code and post aggregate information on website, penalties for insurance companies not in compliance, Property Insurance Clarity Act

Summary

SB210 creates the Property Insurance Clarity Act, requiring homeowners insurers to report policy and loss data by ZIP code to the Alabama Department of Insurance, which will publish aggregate data and rate-making information online, with penalties for noncompliance.

What This Bill Does

Insurers must annually submit to the Alabama Department of Insurance calculations for direct incurred losses, number of policies in force, and direct earned premiums for the prior calendar year, by ZIP code and for specific policy types. The department will aggregate this data across all insurers and post the totals by ZIP code on its website, and will also publish a description of the actuarial model used for homeowners risk and the rate-making methodology. Beginning October 1, 2013, insurers must start reporting data for calendar year 2007 (with earlier years optional); the department will post aggregated totals starting in 2007. The act also requires perils-specific reporting (fire, wind/hail, other) and a data call for catastrophe wind/hail information, while keeping individual company data confidential unless aggregated.

Who It Affects

• Insurance companies authorized to transact homeowners insurance in Alabama — must annually report detailed ZIP code–level data and perils data, and may face fines for noncompliance.
• Alabama Department of Insurance — responsible for collecting, aggregating, and posting the data and for enforcing the reporting requirements and penalties.
• Homeowners policyholders and general public in Alabama — will gain access to aggregated, ZIP code–level data and descriptions of rate-making models and actuarial methods via the department's website.
• State General Fund — potential funds from late or noncompliant insurer fines ($2,500 per month per insurer).

Key Provisions

• Insurers must annually report to the Alabama Department of Insurance (by ZIP code) direct incurred losses, number of policies in force, and direct earned premiums for homeowners-related policies for the prior year.
• The department will aggregate the data across all insurers and post the aggregated totals by ZIP code on its website.
• The department must post a comprehensive description of the actuarial model used for homeowners risk and related data, and also describe the department's rate-making methodology on its website.
• Reporting begins for calendar year 2007 data (with 2007 onward aggregated totals posted starting October 1, 2013); voluntary submissions for years before 2007 are allowed and will be posted in the same manner.
• Data must include perils-specific reporting for fire, wind/hail, and all other perils, by ZIP code and year, and an additional data call for catastrophe wind/hail information.
• The act provides waivers or modifications for good cause; failure to comply triggers a 90-day cure period and then a $2,500 per month fine, with fines deposited to the State General Fund.
• Confidentiality: reported information is treated as a trade secret and kept confidential, but aggregated data may be disclosed; disclosure without a court order requires 10 business days’ notice.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance Department