HB458 Alabama 2013 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2013

Title

Insurance rate increase by personal line insurer, may take effect immediately unless objected to by the Commissioner of Insurance

Summary

HB458 allows private personal auto insurance rate filings to take effect on the filing date if the statewide change is within 15%, with Commissioner review for reasonableness.

What This Bill Does

The bill creates an expedited rate filing process for private personal automobile insurance that may take effect the date it is filed, as long as the overall statewide change is no more than 15% in aggregate. It imposes a 25% maximum increase at renewal per insured (with certain changes not counting toward this limit) and limits to one rate filing per insurer per line per 12 months unless combined with other filings to keep the 15% aggregate. If a filing goes beyond the 15% cap, it follows existing rate filing laws unless exempt, and the Commissioner can issue a detailed order if the filing is found unreasonably high, inadequate, or unfairly discriminatory, with premiums adjusted after the order.

Who It Affects

• Private personal automobile policyholders in Alabama who could see faster rate changes take effect on filing date (subject to a 15% statewide cap and renewal-rate limits).
• Insurance companies authorized to do business in Alabama that file expedited rate changes for private passenger auto policies (subject to actuarial support, limits on filings, and Commissioner review).

Key Provisions

• Expedited rate filings for private personal automobile insurance may take effect on the filing date if the aggregate statewide increase or decrease is no more than 15%.
• An insured may not face more than a 25% rate increase at renewal, with exceptions for changes in risk factors or other non-filing adjustments; the 25% cap does not apply to certain non-rating-factor changes.
• Only one rate filing per insurer per individual line of insurance may be filed in a 12-month period unless combined filings keep the total aggregate within 15%.
• Filings outside the 15% limit follow the normal rate filing laws unless exempt, and are subject to standard procedures (Sections 27-13-30 and 27-13-68).
• A filing under the expedited process is considered compliant unless the Commissioner determines it is unreasonably high, inadequate, or unfairly discriminatory, in which case a written order is issued with detailed findings and a future date when the filing becomes ineffective.
• If the Commissioner issues such an order more than 30 days after receiving the filing, the order is prospective only and does not affect contracts made before the order; premiums adjust on the first day of the month after the order.
• No rate increase within the expedited limit may be applied to an existing policy at renewal without at least 30 days' written notice to the insured; renewal notices showing the renewal premium comply with this requirement.
• The act takes effect on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance