HB7 Alabama 2016 Session

Updated Feb 26, 2026

Low Interest

Summary

Primary Sponsor: Mike Hill
Republican
Session: Regular Session 2016
Title: Insurance, service contracts, term "road hazard" defined, Sec. 8-32-2 am'd.
Summary: HB7 defines 'road hazard' for Alabama service contracts and lists the specific road-hazard damages and related services that may be covered, while clarifying that service contracts are not insurance and setting an effective date.
What This Bill Does
It adds a formal definition of road hazard and links it to what a service contract may cover when damage comes from road hazards. It enumerates covered services such as repair or replacement of tires or wheels, paintless dent removal, windshield repair or replacement due to a road hazard, and replacement of a key or key-fob, with additional services potentially approved by the commissioner. It clarifies that service contracts are not insurance and outlines their regulatory framework, and it establishes when the act becomes effective.

Who It Affects
Service contract holders/consumers: may receive coverage for road-hazard related damages (tires/wheels, dents, windshield damage, key replacement) under applicable service contracts.
Service contract providers and administrators: must follow the defined road-hazard coverage and related terms, and may offer additional road-hazard services with approval from the Insurance Commissioner.

Key Provisions
Definition of road hazard: a hazard encountered while driving a motor vehicle, including potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps.
Covered road-hazard services: repair or replacement of tires or wheels damaged by a road hazard; removal of dents via paintless dent removal; repair or replacement of windshield damaged by a road hazard (to the extent covered by the owner’s auto policy); replacement of a key or key-fob if inoperable, lost, or stolen; and other commissioner-approved services.
Not insurance: service contracts remain separate from insurance and are not considered insurance under the Alabama Insurance Code, except as allowed for a service contract holder’s claim against a provider for non-compliance with the contract.
Effective date: the act becomes law on the first day of the third month after passage and approval by the Governor.

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 Department