HB58 Alabama 2023 Session

Under existing law, insurance placed by lenders on real property is subject to the general laws applicable to property insurance

This bill would provide a specific framework for regulating lender-placed insurance on real property in order to help maintain the separation between lenders and insurers and minimize unfair competitive practices in the sale, placement, solicitation, and negotiation of lender-placed insurance. The bill is based on a model act adopted by the National Association of Insurance Commissioners (NAIC)

This bill would further define the term of the lender-placed insurance on real property and would provide for the calculation of coverage and payment of premium

This bill would further provide for prohibited practices in the issuance of lender-placed insurance on real property, would require certain details of the insurance to be set forth in the policy or certificate of insurance, and would require for the filing and approval of the forms and rates to be charged for the insurance

This bill would further provide for the enforcement of the act, penalties for violations of the HB58 INTRODUCED act, and for judicial review of orders by the Commissioner of Insurance

Relating to insurance; to define lender-placed insurance on real property and provide a framework for regulating lender-placed insurance; to require separation between lenders and insurers and define unfair competitive practices in the sale, placement, solicitation, and negotiation of lender-placed insurance; to further provide for the term of the lender-placed insurance on real property and for the calculation of coverage and payment of premium; to provide for prohibited practices in the issuance of lender-placed insurance on real property; to require certain details of the insurance to be set forth in the policy or certificate of insurance; to require for the filing and approval by the Department of Insurance of the forms and rates to be charged for the insurance; to provide for the enforcement of the act and penalties for violations of the act; and to provide for judicial review of orders of the Commissioner of Insurance.