SB232 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

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

SB232 would limit hurricane deductibles to damage from named storms and require voluntary buy-back options for non-hurricane wind/hail deductibles in certain personal lines, with penalties for violations.

What This Bill Does

It prohibits applying a hurricane deductible to property damage unless the damage comes from a named hurricane or named tropical storm. It requires personal lines policies that offer a percentage deductible for winds and hail from non-named-storm sources to provide a voluntary, actuarially sound buy-back option no greater than 1% of dwelling limits. It imposes penalties for violations (up to $10,000 per violation and possible license suspension or revocation) and allows waivers through a defined commissioner process. It also requires the Department of Insurance to issue necessary rules, and the act would take effect immediately after passage.

Who It Affects

• Homeowners and other property policyholders, who would see hurricane deductibles limited to named storms rather than all wind-related damage.
• Insurance companies offering personal lines policies with wind/hail deductibles, which must provide a voluntary buy-back option (capped at 1% of dwelling limits) and may face waiver filings.
• Alabama Department of Insurance and the Insurance Commissioner, who would enforce penalties, grant waivers, and implement related rules.

Key Provisions

• Prohibits hurricane deductibles or wind/hail percentage deductibles on damage not caused by a named hurricane or named tropical storm, for dwelling or building insurance.
• Requires personal lines policies with non-named-storm wind/hail deductibles to offer a voluntary buy-back provision, actuarially sound and no greater than 1% of dwelling limits.
• Establishes a waiver process where insurers can seek relief from the buy-back requirement with formal filings and supporting documentation; commissioner approves or denies.
• Imposes penalties for violations (up to $10,000 per violation) and allows license revocation or suspension for noncompliance; authorizes other penalties under insurance law; directs rulemaking by the Department of Insurance.
• Effective immediately after passage and governor 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

Property, Real and Personal