SB84 Alabama 2023 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

Republican

Session

Regular Session 2023

Title

Relating to disability insurance policies; to authorize disability insurers to offer paid family leave benefit policies.

Summary

The bill would let disability insurers offer paid family leave benefits as part of disability policies, expanding coverage for certain family-related leaves in Alabama.

What This Bill Does

It creates a new Paid Family Leave Income Replacement Benefits Act that allows disability insurers to add paid family leave to employer-sponsored group policies or voluntary employee policies. It covers specific situations such as caring for a family member with a serious health condition, bonding with a new child, and certain military-related or other family leave needs defined in the policy. The policy must specify details like eligibility, benefit amounts, duration (at least two weeks in a 52-week period), waiting periods, offsets, and any limitations or exclusions; premiums would follow state disability insurance rules and coverage can be a standalone policy or a rider. The act becomes effective after the Governor signs the bill and it requires insurers to comply with the new provisions when offering paid family leave benefits.

Who It Affects

• Employees with disability insurance who may take paid family leave for the covered family-related reasons, and their family members who may receive benefits.
• Insurance companies and employers who offer or sponsor disability policies (including as riders to disability policies), who would design, price, and administer the new paid family leave benefits.

Key Provisions

• Creates a new article known as the Paid Family Leave Income Replacement Benefits Act and authorizes expansion of disability benefits to include paid family leave.
• Defines covered terms such as child, family leave, family member, parent, and serious health condition to set the scope of eligible leave.
• Lists the specific family leave reasons eligible for benefits (care for a seriously ill family member, bonding after birth/adoption/foster care, qualifying exigencies due to active duty, care for a service member, and other policy-defined leave).
• Requires policies to specify the length of benefits for each reason (minimum two weeks in a 52-week period) and allows various methods to calculate that 52-week period.
• Allows an unpaid waiting period and details how it may be applied, including whether it counts toward the allotment and whether work or other compensation can occur during the waiting period.
• Outlines how benefit amounts are calculated, including the definition of wages, offsets from other income, and circumstances under which offsets apply.
• Permits limitations, exclusions, or reductions to eligibility as long as they are stated in the policy (e.g., failure to provide notice/certification, leave for willful harm, simultaneous eligibility for other benefits, or duplication with other programs).
• Requires premiums for these benefits to follow state disability income insurance law and allows coverage to be offered as part of a policy or as a rider.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Disability insurance, authorizing paid family leave benefit policies.