SB291 Alabama 2018 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2018

Title

Insurance, title insurers authorized to form rating bureau for purposes of filing rates on behalf of members, Secs. 27-13-140 to 27-13-146, inclusive, 27-25-6.1 added; Secs. 27-13-2, 27-25-6 am'd.

Summary

SB 291 would let title insurers form a rating bureau to file title insurance rates for its members, shifting rate filing duties away from direct approval by the Commissioner.

What This Bill Does

It creates a new framework (Article 6) that allows title insurers to establish a rating organization to set and file title insurance premium rates on behalf of its members. The rating organization must be authorized by the Commissioner, pay up to $200 in fees, and provide information about its structure, membership, and how it determines rates. It also establishes annual renewals, membership rules (including non-discrimination and hearings for denials), and procedures if a member is expelled; any rate filings must be reviewed and approved by the Commissioner before becoming effective, and form filings by rating organizations are subject to existing filing rules.

Who It Affects

• Title insurers in Alabama that choose to join a rating organization, as their rate filings would be made by the organization rather than directly by the insurer.
• The Alabama Department of Insurance and the Insurance Commissioner, which would authorize rating organizations, review filings, set filing and renewal fees, enforce membership rules, and regulate the rating system for title insurance.

Key Provisions

• Establishes Article 6 (Sections 27-13-140 to 27-13-146) to create rating organizations for title insurance and to allow them to file premium rates on behalf of member or subscriber insurers.
• Authorizes initial rating organization approval by the Commissioner with a fee not to exceed $200 and requires submission of information (governing documents, member list, contact person, rate-determination method, etc.).
• Requires annual renewal by December 31 with a renewal fee not to exceed $200 and continued compliance with the article’s requirements.
• Imposes membership rules: non-discrimination in admission, grounds for denial with written reasons, and a hearing process for denials; expelled or withdrawn members must be notified and may be readmitted upon payment of delinquent fees; expelled members cannot use the rating organization's rates.
• Requires rating organization filings to be approved by the Commissioner; allows disapproval with a hearing process; authorizes the Commissioner to issue written decisions and set rules for implementation.
• Adds Section 27-25-6.1 to govern form filings by rating organizations, requiring compliance with 27-14-8 rules; filings must be approved by the Commissioner before taking effect.
• Amends existing statutes (27-13-2 and 27-25-6) to reflect that title insurance rates can be filed by a rating organization on behalf of its members and to reinforce rate filing standards and prohibitions (e.g., no rate rebates, no negotiated bidding).
• Fees collected under this act go to the State Treasury for the Insurance Department Fund; the act becomes effective on the first day of the third month after passage and governor approval (or when it becomes law otherwise).

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