SB454 Alabama 2012 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsors

Trip PittmanRusty Glover

Session

Regular Session 2012

Title

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

Summary

SB454 would require Alabama homeowners insurers to report policy and premium data to the Department of Insurance and publish aggregate, zip-code level information and rate‑making details, with penalties for noncompliance.

What This Bill Does

Insurance companies authorized to transact homeowners insurance in Alabama must annually report data on policies, direct earned premiums, and direct incurred losses by zip code. The Department of Insurance will aggregate this data across all companies and post the totals by zip code on its website, and also post a description of the rate-making methodology used for homeowners risk. The bill also establishes penalties for failing to comply on time and keeps reported data confidential until it is aggregated; there are provisions for waivers, deadlines, and the potential release of information in aggregated form.

Who It Affects

• Insurance companies authorized to transact homeowners insurance in Alabama (must submit data and may face fines for noncompliance).
• Alabama Department of Insurance (collects, aggregates, and publishes data; provides rate-making methodology descriptions).
• Public/consumers in Alabama (gains access to aggregated, zip-code level data and rate-making descriptions).

Key Provisions

• Creates the Property Insurance Clarity Act to require reporting of homeowners policy and premium data to the Alabama Department of Insurance.
• Requires annual submission by Oct 1 (starting 2013) of total direct incurred losses, number of policies written, and direct earned premiums for prior year, by zip code; includes certain homeowners policy types and excludes creditor-placed property and condo association insurance; data can be reported voluntarily for years before 2007.
• The Department must aggregate data across all companies and post the aggregated totals by zip code on its website by Jan 30 for the prior year; perils data (fire, wind/hail, catastrophe wind/hail, other) must be reported by zip code as well.
• The Department must post a general description of the rate-making methodology used for homeowners rates and related data on its website.
• Initiates a data posting timeline starting 2007 (with aggregate totals posted in 2014) and allows waivers or extensions for good cause; penalties of $2,500 per month for noncompliance after a 90-day notice window, with funds deposited to the State General Fund.
• Maintains confidentiality: information is treated as a commercially valuable trade secret until aggregated; non-aggregated data cannot be released without a court order, with 10 business days’ notice to the affected entity.

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