HB608 Alabama 2017 Session

Summary

Primary Sponsor

Kyle South

Republican

Session

Regular Session 2017

Title

Insurance, title insurance rating bureau, established, fees, regulation, Secs. 27-13-130, 27-13-131, 27-13-132, 27-13-133, 27-13-134, 27-13-135, 27-13-136 added; Sec. 27-13-2 am'd.

Summary

HB608 would allow title insurers to form a rating bureau to file title insurance rates for its members under state supervision.

What This Bill Does

The bill creates a system where a rating organization can be authorized to set and file title insurance rates for its member insurers, instead of the Commissioner directly approving those rates. It sets up application and renewal processes, requires governance and member information, and imposes fees (up to $200). It also lays out membership rules, dispute rights, and rules about expulsion and use of rates. All collected fees go to the Insurance Department Fund, and title insurance rates would be handled by the rating bureau once authorized.

Who It Affects

• Title insurers that write title insurance in Alabama may join a rating bureau and have their rates filed by the bureau on their behalf, subject to membership rules and ongoing fees.
• Rating organizations seeking to operate as authorized title insurance rating bureaus must meet submission, governance, and renewal requirements and charge and collect specified fees; member insurers must follow admission and rate-use rules.

Key Provisions

• Excludes title insurance rates from the Commissioner's general rate approval, allowing a certified rating organization to file rates for its title insurer members.
• Creates new Article 6 (Sections 27-13-130 to 27-13-136) detailing the establishment and operation of a title insurance rating bureau.
• Allows the Commissioner to authorize a rating organization to file title insurance rates on behalf of its member or subscriber insurers, pending qualification.
• Sets application/initial filing and renewal fees up to $200, with required organizational and membership information.
• Requires annual renewal by December 31 and continued compliance with the rating organization rules to maintain authority.
• Allows any title insurer to join as a member; prohibits unfair discrimination in admission; provides a hearing process if membership is denied.
• Requires the rating organization to notify the Commissioner within 10 days of any member withdrawal or expulsion; readmission possible upon payment of delinquent fees.
• Expelled or withdrawn members cannot use the rating organization’s rates during the expulsion/withdrawal period.
• Prohibits an insurer from using rates or rating systems from a rating organization unless it is a member.
• All fees collected under this article are deposited into the State Treasury to the credit of the Insurance Department Fund.
• The act becomes effective on the first day of the third month after passage and 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