SB278 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

SB278 would let private personal auto insurance rate filings take effect on the filing date if the statewide change is 15% or less, with ongoing Commission oversight for fairness.

What This Bill Does

If enacted, rate filings for private personal auto insurance that propose a total statewide change of up to 15% may become effective on the filing date. Filings exceeding the 15% limit would follow existing law, requiring approval before taking effect. The Insurance Commissioner can issue a detailed order if a filing is unreasonably high, inadequate, or unfairly discriminatory. The bill also sets limits and safeguards, including caps on renewal increases, a limit on expedited filings, actuarial support requirements, and a 30-day advance notice to insureds before changes take effect.

Who It Affects

• Policyholders with private personal auto insurance could see rate changes take effect more quickly (upon filing) if the change stays within the 15% statewide limit, with renewal increases capped at 25% and certain exceptions.
• Insurers authorized to operate in Alabama and the Alabama Department of Insurance (the Commissioner) would implement the expedited filing process, provide actuarial support, and exercise ongoing oversight to prevent unfair rate practices.

Key Provisions

• Expedited rate filings for private personal auto insurance may take effect on the filing date if the aggregate statewide rate change is within 15% for all covered policies.
• If a filing is outside the 15% limit, it must follow existing law and receive the Commissioner’s approval before taking effect.
• The Commissioner can issue a written order if the filing is unreasonably high, inadequate, or unfairly discriminatory, and may set a future effective date; orders issued more than 30 days after filing are prospective only.
• No more than one expedited rate filing per insurer per individual line in a 12-month period unless, overall, filings do not cause more than a 15% statewide change; territorial increases require actuarial support, and liability, comprehensive, or collision increases require separate actuarial indications.
• An insured may not see more than a 25% increase at renewal, with exceptions for changes not altered in the filing (e.g., symbol updates, policy changes, aging into a new class).
• Insurers must provide at least 30 days’ written notice before the end of the policy period for rate changes; renewal notices or billing statements may satisfy this requirement.
• The act applies to private personal auto insurance written in Alabama by insurers authorized to do business in Alabama, and it 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