SB353 Alabama 2016 Session

Summary

Primary Sponsor

Bill Hightower

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

SB353 lets Alabama insurance premium finance companies also finance wind mitigation construction costs with approval from the Insurance Commissioner.

What This Bill Does

The bill expands what premium finance companies can finance beyond insurance premiums to include wind mitigation upgrades for homes. Financing for these upgrades would require approval from the Commissioner of Insurance. It updates definitions and sets out required details for premium finance agreements, including the amount financed, down payment, installments, and APR, while allowing some flexibility in how those items are presented.

Who It Affects

• Insurance premium finance companies: may offer wind mitigation financing in addition to premium financing, subject to the Commissioner’s approval.
• Homeowners/policyholders: could obtain financing for wind mitigation construction as part of their homeowner insurance-related financing.
• Insurance agents and insurers: must be included in the premium finance agreement process and documentation for related insurance contracts and wind mitigation financing.
• Commissioner of Insurance: gains authority to approve wind mitigation financing programs offered by premium finance companies.

Key Provisions

• Authorizes insurance premium finance companies to provide wind mitigation construction financing, subject to approval by the Commissioner of Insurance.
• Defines wind mitigation construction financing as a construction loan between the homeowner/policyholder and an authorized lender for wind mitigation upgrades to the insured home.
• Amends Sections 27-40-1 and 27-40-8 to include wind mitigation financing in the activities of premium finance licensees and to describe relevant terms and requirements.
• Premium finance agreements must be dated, signed, in at least eight-point type, include party information (insured, insurer/agent, premium finance company), a description of financing, and the amount of premiums and charges; they must itemize total charges, down payment, principal balance, service charge, balance payable, installments, and APR, with flexibility in order and the option to add more items to explain computations.
• Effective date: the act becomes effective on the first day of the third month following its passage and governor approval (i.e., when it becomes law).

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