HB398 Alabama 2015 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2015

Title

Insurance, title insurance rating bureau, established, fees, regulation, Secs. 27-13-130, 27-13-131, 27-13-132, 27-13-133, 27-13-134, 27-13-135, 27-13-136 added; Sec. 27-13-2 am'd.

Summary

HB398 would allow title insurers in Alabama to form a rating bureau to set and file title insurance rates on behalf of member insurers, with regulatory oversight and fees.

What This Bill Does

It authorizes the creation of a rating organization that can file premium rates for title insurers in Alabama, once approved by the Commissioner of Insurance. It establishes application and annual renewal requirements, including fees up to $200 and documentation the commissioner may require. It requires nondiscriminatory admission of insurers, provides for hearings and appeals if membership is denied, and mandates notification of any withdrawal or expulsion and prevents expelled insurers from using the organization's rates; all fees go to the Insurance Department Fund.

Who It Affects

• Title insurers that write title insurance in Alabama would have the option to join a rating organization to have their rates filed on their behalf.
• Rating organizations themselves would be licensed to file rates and must follow reporting and fee requirements.
• The Alabama Insurance Commissioner and Department would oversee and regulate the rating organization and collect and manage fees.
• Other insurers in Alabama could be affected indirectly through changes in rate filing and pricing practices.

Key Provisions

• Authorizes a rating organization to file title insurance premium rates on behalf of its member or subscriber insurers, upon approval by the commissioner.
• Sets initial authorization fee not to exceed $200 and annual renewal fee not to exceed $200.
• Requires rating organizations to submit founding documents, list of member insurers, in-state contact, and description of how rates will be determined, among other information.
• Requires membership admission be non-discriminatory, provides for hearings if membership is denied, and allows appeals.
• Requires notification to the commissioner within 10 days of withdrawal or expulsion of a member; readmission rules apply; expelled/non-member insurers cannot use the organization's rates.
• All fees collected under this article go to the State Treasury Insurance Department Fund.
• Effective date is 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