SB481 Alabama 2012 Session

Summary

Primary Sponsor

Roger Bedford, Jr.

Democrat

Session

Regular Session 2012

Title

Insurance, Title 27, certain sections, repealed

Summary

SB481 would repeal portions of Title 27 (Alabama’s Insurance Code), ending the Alabama Insurance Underwriting Association framework and related Department of Insurance provisions.

What This Bill Does

The bill repeals sections 27-1-24 through 27-2-7, removing requirements that insurers be members of the Alabama Insurance Underwriting Association (AIUA) and ending the AIUA’s powers, finances, and governance. It also eliminates the related Department of Insurance provisions included in those sections, removing the stated organizational structure, duties, and administrative rules. In short, it dissolves the AIUA framework and the specific Department of Insurance provisions defined in those sections from Title 27.

Who It Affects

• Insurers authorized to write fire and extended coverage in Alabama: would no longer be required to join AIUA, and any existing membership obligations or liabilities tied to AIUA would be eliminated.
• The Alabama Insurance Underwriting Association: its authority, governance, and financial arrangements would be repealed or become moot.
• The Alabama Department of Insurance: the specific organizational provisions (appointment, duties, seals, offices, salaries, and related rules) described in the repealed sections would be removed from Title 27.
• State regulatory framework and public records: requirements related to AIUA plans of operation and public inspection of association documents would be repealed.

Key Provisions

• Repeal of 27-1-24(a)-(f), ending the requirement for fire and extended coverage insurers to be AIUA members and removing the association’s rules on membership liability, post-2008 enrollment dates, plans of operation, and public inspection of documents.
• Repeal of 27-1-24(d)-(e), removing AIUA’s authority to carry over unexpended surpluses, use interest or investment earnings, issue bonds or other debentures, and accept loans or grants.
• Repeal of 27-1-24(f), eliminating the Beach Area designation as described in the statute.
• Repeal of sections 27-2-1 to 27-2-7, which establish the Department of Insurance, its structure, appointment of the commissioner, oath and bond requirements, salary, official seal, and related administrative provisions.

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