HB430 Alabama 2016 Session

Summary

Primary Sponsor

David SessionsSenator

Republican

Session

Regular Session 2016

Title

Insurance premium finance companies, wind mitigation construction, authorized to finance, approval by Insurance Commissioner, Secs. 27-40-1, 27-40-8 am'd.

Summary

HB430 would let insurance premium finance companies also finance wind mitigation construction costs, with regulatory approval.

What This Bill Does

Authorizes insurance premium finance companies to provide wind mitigation construction financing in addition to premium financing, subject to approval by the Alabama Commissioner of Insurance. Amends sections 27-40-1 and 27-40-8 to include wind mitigation financing in the definitions and rules for premium finance agreements. Defines wind mitigation construction financing as a construction loan between the homeowner/policyholder and an authorized lender for wind mitigation upgrades. Sets out what must be included in premium finance agreements (total charges, down payment, principal balance, service charge, installments, APR) and notes that additional items may be included to explain computations; establishes when the act becomes effective.

Who It Affects

• Insurance premium finance companies: allowed to offer wind mitigation construction financing (in addition to financing premiums), pending regulatory approval.
• Homeowners/policyholders: may obtain financing for wind mitigation upgrades through premium finance agreements with authorized lenders.

Key Provisions

• Authorize insurance premium finance companies to provide wind mitigation construction financing, subject to approval by the Commissioner of Insurance.
• Amend Sections 27-40-1 and 27-40-8 to include wind mitigation financing in the definitions and requirements for premium finance agreements.
• Define wind mitigation construction financing as a construction loan between the homeowner/policyholder and an authorized lender for wind mitigation upgrades.
• Set required contents for premium finance agreements (total charges, down payment, principal balance, service charge, installments, APR) and allow additional items to explain computations.
• Make the act effective on the first day of the third month following its 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