SB95 Alabama 2014 Session

Summary

Primary Sponsor

Mark Slade Blackwell

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

SB95 would let private personal auto insurers in Alabama implement rate changes on filing date for up to a 15% statewide aggregate increase or decrease, with regulatory oversight to prevent unfair or discriminatory pricing.

What This Bill Does

The bill lets rate filings for private personal auto insurance take effect on the filing date if the overall statewide change is no more than 15 percent. Filings are presumed compliant unless the Commissioner of Insurance finds them unreasonably high, inadequate, or unfairly discriminatory, in which case the commissioner can issue a detailed order. An insured cannot have more than a 25 percent increase at renewal, with exceptions for certain changes in risk factors or policy terms not altered in the filing. There can be at most one expedited filing per insurance line per 12 months unless combined filings stay within the 15 percent statewide cap, and actuarial support is required for rate changes.

Who It Affects

• Private auto policyholders in Alabama who could see faster, potentially higher, rate changes up to a 15% statewide aggregate and must receive renewal notices when changes occur.
• Insurers authorized to do business in Alabama, who could file expedited rate changes (up to a 15% statewide aggregate) and must comply with actuarial requirements and regulatory oversight, including possible orders from the Commissioner.

Key Provisions

• Creates the Personal Automobile Insurance Market Competitiveness Act allowing rate filings to take effect on the filing date if the statewide aggregate change is 15% or less.
• Filings are presumed compliant with state law unless the Commissioner of Insurance determines the filing is unreasonably high, inadequate, or unfairly discriminatory, in which case a detailed order can be issued.
• An insured may not face more than a 25% rate increase at renewal, with exceptions for factors not altered by the filing (e.g., symbol updates, policy changes, aging between classes).
• Only one expedited rate filing per insurance line may be made in a 12-month period unless combined filings stay within the 15% aggregate cap, with actuarial indications required for each rate change and separate indications for liability, comprehensive, or collision.
• If the Commissioner disapproves a filing, premiums are adjusted starting the first day of the month after an order is issued, and orders issued after 30 days from filing are prospective only.
• No rate increase within the 15% cap may be implemented on an existing policy unless it is at renewal or conditional renewal with at least 30 days' advance notice to the insured.
• Applies to private personal automobile insurance written in Alabama by insurers authorized to do business in the state; becomes effective after 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