SB328 Alabama 2013 Session

Summary

Primary Sponsor

Mark Slade Blackwell

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

SB328 would let private personal automobile insurance rate changes take effect when filed, rather than waiting for approval, but only if the total statewide change is limited to 15% and with safeguards for fairness.

What This Bill Does

If a private personal auto rate filing requests a statewide change of 15% or less, it may take effect on the filing date. The filing is presumed compliant unless the Insurance Commissioner finds it unreasonably high, inadequate, or unfairly discriminatory, in which case the Commissioner can issue a detailed order with a future effective date. Premiums can still only be increased gradually, with at most a 25% increase at renewal, and any increases under the 15% cap must follow a 30-day notice for renewals; the act also requires actuarial support for rate changes and limits the expedited filing to one per line per 12 months unless the overall cap remains within 15%. If a filing falls outside the cap, it must follow existing rate-filing laws. The act becomes law a few months after passage and governor approval.

Who It Affects

• Policyholders with private personal automobile insurance in Alabama, who could see faster rate changes take effect but are protected by a 15% aggregate statewide cap and a 25% renewal increase limit.
• Insurance companies authorized to do business in Alabama, which can file expedited rate changes and must provide actuarial data; they are limited to one expedited filing per line per year unless the overall cap is maintained.
• The Alabama Department of Insurance and the Commissioner, who would review filings, enforce fairness, and issue detailed orders if a filing is found to be unreasonably high, inadequate, or unfairly discriminatory.

Key Provisions

• Private personal automobile rate filings with a statewide aggregate change of 15% or less may take effect on the filing date.
• A filing is presumed compliant unless the Commissioner determines it is unreasonably high, inadequate, or unfairly discriminatory, in which case a written order with reasons and a future date for effectiveness is issued.
• The 15% cap applies to statewide aggregate changes; individual insureds cannot have more than a 25% increase at renewal; notice to insureds must be provided at least 30 days before renewal.
• Only one expedited rate filing per insurance line per 12 months, unless combined filings still keep the statewide change within 15%; territorial increases require actuarial support, and liability/comprehensive/collision rates must have separate actuarial support.
• If a filing falls outside the 15% limit, it is subject to existing rate filing laws (27-13-30 and 27-13-68) unless exempt.
• Premiums are adjusted on the first day of the month following an order by the Commissioner; orders issued more than 30 days after filing are prospective only and do not affect contracts already issued.
• The act applies to insurers authorized to do business in Alabama and becomes effective on the first day of the third month 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

Insurance