HB93 Alabama 2015 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2015

Title

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

Summary

HB93 would let private personal auto insurance rate changes take effect on the filing date (instead of waiting for state approval) if the overall statewide change is within 15%, with safeguards and Commissioner oversight.

What This Bill Does

It creates an expedited rate filing process for private personal auto insurance that allows rate changes to take effect when filed, as long as the aggregate statewide change does not exceed 15%. The proposal remains subject to the Commissioner of Insurance's review for fairness, and an order can be issued if the filing is deemed unreasonably high, inadequate, or unfairly discriminatory, with premium adjustments beginning the next month after the order. It also sets limits on how much any individual renewal can increase (not more than 25%, with specific exceptions), requires actuarial support for rate changes by territory and for liability, comprehensive, and collision separately, and restricts filing frequency unless the 15% cap is maintained across all filings in a 12-month period.

Who It Affects

• Policyholders with private personal automobile insurance in Alabama, who could see faster rate changes take effect and may experience renewal increases capped at 25% (with exceptions) and require advance notice for rate changes.
• Insurance companies authorized to write private personal auto insurance in Alabama, who could file rate changes that may take effect on filing date if within the 15% statewide cap, but would be subject to actuarial support requirements and potential Commissioner orders for fairness.

Key Provisions

• Expedited rate filing: private personal auto rate changes with an aggregate statewide increase/decrease of up to 15% may take effect on the filing date; this cap does not apply to individual insured bases.
• Renewal cap and exceptions: no more than a 25% renewal increase for an individual insured, with exceptions for changes due to factors not altered in the filing (e.g., symbol updates, policy changes, aging into a different risk class).
• Filing limits and actuarial support: only one rate filing per line per insurer per 12 months under the expedited process unless combined filings still keep the 15% aggregate cap; territorial and line-item actuarial support required (territory-wide for all coverages, and separately for liability, comprehensive, and collision).
• Commissioner review and remedies: the Commissioner can determine filings are unreasonably high, inadequate, or unfairly discriminatory and issue a detailed order; if the order is issued more than 30 days after filing, it is prospective only, with premium adjustments made after the order.
• Notice and renewal compliance: changes affecting existing policies require at least 30 days’ notice to the insured before the end of the policy period; renewal notices or billing statements showing the renewal premium are considered compliant.
• Effective date of the act: the law 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 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance