SB153 Alabama 2015 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Mark Slade Blackwell
Republican
Session: Regular Session 2015
Title: Motor vehicle rental companies, selling of insurance by employees and agents authorized under certain conditions, compensation further provided for, Sec. 27-7-5.1 am'd.
Summary: SB153 allows rental car companies to pay employees to offer or sell insurance to renters without the employees needing individual insurance licenses, and sets rules for how this can be done and disclosed.
What This Bill Does
If enacted, licensed motor vehicle rental companies can authorize and pay compensation to employees or authorized representatives to offer or sell insurance coverage in connection with a rental, without requiring the employees to be individually licensed to sell insurance. Compensation cannot be based mainly on the number of customers who buy insurance; it must be incidental to the employee's overall pay. The bill also requires training for employees, disclosures to renters about coverage terms and potential duplication with other policies, and limits insurance offers to certain travel/auto-related coverages sold in connection with rentals (within a 90-day rental period).

Who It Affects
Rental car companies, which may offer and compensate employees to sell insurance in connection with rentals and must provide training and comply with disclosure requirements.
Employees or authorized representatives of rental companies, who may offer or sell insurance without individual licensing and must not be primarily compensated based on sales but rather receive incidental compensation as part of their overall pay.
Renters or customers, who may be offered insurance coverage at the rental location, must receive clear disclosures, are told that purchase is optional and may be duplicative of their existing policies, and will encounter a defined process for claims if they buy coverage.

Key Provisions
A rental company may authorize and pay compensation to an employee or authorized representative to offer or sell insurance coverage without the employee being individually licensed.
Compensation to employees may not be based primarily on the number of customers who elect to purchase insurance; it may be incidental to the employee's overall compensation.
Insurance offered can include personal accident, liability (including uninsured/underinsured), personal effects, roadside assistance, and other travel/auto-related coverages related to the rental.
Insurance may be offered only in connection with and incidental to the rental of vehicles and within the 90-day rental period; brochures/disclosures must be available at rental locations describing terms, duplicative coverage, and that purchase is not required.
Evidence of coverage must be disclosed to renters who elect to purchase the coverage, and the process for filing a claim must be described.
Rental companies must conduct a training program for employees on the kinds of coverage offered.
Monies collected from renters for insurance must be itemized and not treated as funds held in fiduciary capacity; sales must be tied to a rental transaction and not sold separately.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Motor Vehicles