SB150 Alabama 2015 Session

Summary

Primary Sponsor

Mark Slade Blackwell

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

SB150 would let private personal auto insurance rate changes take effect on the filing date if the overall statewide change is no more than 15%, with protections and oversight.

What This Bill Does

It allows rate filings for private personal automobile insurance to become effective as soon as they are filed, instead of waiting for approval by the Commissioner. It sets a statewide cap of 15% on the aggregate rate change across all coverages in a filing; individual insureds are not bound by this cap, but there is a 25% cap at renewal, with certain exceptions for factors not altered in the filing. It requires actuarial support for rate changes by territory and for liability, comprehensive, and collision coverage, and it limits the number of expedited filings unless the overall impact remains within the 15% cap; the Commissioner can review filings and issue orders if they are unreasonably high, inadequate, or unfairly discriminatory. If a filing is outside the expedited limit, it follows existing law; any Commissioner order can be prospective if issued after 30 days, and premiums may adjust starting the next month after the order; insureds must receive 30 days’ advance notice for renewal-related rate changes.

Who It Affects

• Policyholders with private personal auto insurance: potential for faster rate changes at filing and statewide cap protections, with renewal increases limited to 25% and notice requirements in place.
• Insurance companies authorized to write private personal auto insurance in Alabama: can file expedited rate changes that may take effect on filing date, must provide actuarial support, and face Commissioner oversight for reasonableness and fairness.

Key Provisions

• Expedited rate filings for private personal auto insurance may take effect on the filing date if the aggregate statewide increase or decrease is no more than 15%.
• The 15% limit does not apply to individual insured bases; no more than a 25% increase at renewal, with certain exclusions for changes not altered in the filing (e.g., symbol updates, driver aging between classes).
• Only one expedited filing per insurance line per 12 months unless the combined filings in the prior 12 months keep the total impact within the 15% cap.
• Actuarial indications are required for territorial rate increases and for liability, comprehensive, or collision increases; filings outside the limit follow existing law.
• If the Commissioner finds a filing unreasonably high, inadequate, or unfairly discriminatory, they may issue a detailed order with a specified future effective date; orders issued after 30 days are prospective.
• Any rate increase within the limit for an existing policy requires at least 30 days’ advance written notice to the named insured before renewal; renewal or billing statements can satisfy this notice requirement.

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