HB264 Alabama 2014 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2014

Title

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

Summary

HB264 would let private personal auto insurers adjust rates up to 15% statewide at the time of filing, instead of waiting for state approval, with oversight from the Commissioner and protections for insureds.

What This Bill Does

It allows rate filings that result in a total statewide change of up to 15% for private personal auto coverage to take effect when filed. The filing is presumed compliant unless the Commissioner finds it unreasonably high, inadequate, or unfairly discriminatory, in which case the Commissioner must issue a detailed order and a future date for when the filing would no longer be effective; premiums may be adjusted the first day of the next month after the order. The act also imposes a 25% cap on rate increases at renewal for individual insureds (with certain exceptions), requires actuarial support for changes, and limits expedited filings to no more than one per line per insurer per 12 months while ensuring overall 15% cap is maintained. If a filing exceeds the 15% cap, it falls under existing law with standard oversight.

Who It Affects

• Private personal auto insurers authorized to do business in Alabama (may use expedited rate filings up to 15% statewide change, with actuarial support and filing limits).
• Private auto insurance policyholders/insured individuals (could see faster premium changes, but protections include a 25% renewal cap and required notice before increases).

Key Provisions

• Expedited rate filing for private personal auto insurance allows up to a 15% aggregate statewide rate change to take effect on filing date; the 15% limit applies to all coverages subject to the filing, not per individual insured.
• If the Commissioner finds a filing unreasonably high, inadequate, or unfairly discriminatory, he must issue a written order detailing violations, specify a future date when the filing becomes or ceases to be effective, and premiums may be adjusted the next month after the order.
• No more than one expedited rate filing per insurer per 12 months per line, unless combined filings keep the overall statewide change within 15%; territorial and liability/comprehensive/collision increases must have actuarial support.
• No renewal rate increase may exceed 25% for an individual insured, except for changes not caused by the filing (e.g., symbol updates, policy changes, risk classification changes).
• If a filing falls outside the 15% cap, it follows existing law (Sections 27-13-30 and 27-13-68) unless exempt.

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