HB265 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

HB265 lets Alabama personal-lines rate changes take effect on filing date if the statewide impact is capped at 12%, with ongoing oversight by the Insurance Commissioner.

What This Bill Does

It allows expedited rate filings for personal-lines insurance to take effect when filed, provided the total statewide change is 12% or less. The filing is considered compliant unless the Commissioner finds it unreasonably high, inadequate, or unfairly discriminatory, in which case a detailed order limiting or clarifying the filing would be issued. There are limits: only one expedited filing per line per 12 months, and the combined impact of filings in that period cannot exceed 12%. For existing policies, increases within the limit must be applied at renewal with at least 30 days' advance written notice, and renewal notices or billing statements showing the renewal premium are compliant; payment of the premium is treated as consent.

Who It Affects

• Insurers authorized to do business in Alabama: can file expedited personal-lines rate changes and implement them on filing date if the statewide 12% cap is met, subject to Commissioner review and potential orders.
• Policyholders with personal-line policies in Alabama: may see faster rate changes within the 12% cap, and must receive 30 days' advance notice at renewal for increases; renewal notices or billing statements will reflect the new premium and payment implies consent.

Key Provisions

• Expedited rate filings for personal lines may take effect on the filing date if the aggregate statewide increase/decrease is no more than 12%; only one expedited filing per line per 12 months, and filings within 12 months must keep the total impact within 12%.
• If a filing falls outside the 12% limit, standard rate-filing laws apply unless otherwise exempt; the Commissioner can enforce compliance.
• The Commissioner may issue a written order detailing why a filing is unreasonably high, inadequate, or unfairly discriminatory, including a future date when the filing becomes no longer effective; orders issued more than 30 days after receipt are prospective only and do not affect pre-existing contracts.
• No rate increase within the limit may be applied to an existing policy unless it is at renewal or conditional renewal, with at least 30 days’ advance written notice; renewal notices or billing statements showing the renewal premium are compliant; payment implies consent.

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