SB228 Alabama 2012 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsors

Trip PittmanRusty GloverGeorge M. “Marc” KeaheyVivian Davis Figures

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 Homeowner's Insurance Cost Transparency Act 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

Carriers must include a clear written disclosure of the cost for every type of coverage in the renewal package. The disclosure must show the cost per $1,000 of coverage and the actual total cost for each item. The Insurance Commissioner may adopt a standard form for presenting these disclosures. The act provides an example format for wind, fire, theft, and liability coverage to illustrate how the information should look.

Who It Affects

• Homeowners insureds receiving renewal policies will see itemized cost disclosures for each coverage type.
• Insurance carriers issuing homeowner's policies must provide the disclosures with renewal packages.
• Alabama Insurance Commissioner may establish and enforce a standard disclosure form.

Key Provisions

• Requires renewal packages to include a clear written disclosure of the actual costs of each item of coverage, expressed as the rate per $1,000 of coverage and the actual total cost for each item.
• Provides an example format showing costs for wind, fire, theft, and liability coverage with the total policy cost.
• Defines homeowner's policy as including coverage for traditional homes, mobile homes, and manufactured homes.
• authorizes the Insurance Commissioner to adopt a standard form for these disclosures.
• Effective date: the act becomes law on the first day of the third month after passage and approval.

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