HB141 Alabama 2024 Session

Summary

Primary Sponsor

Corley EllisRepresentative

Republican

Session

Regular Session 2024

Title

Insurance; motor vehicles; assigned risk plan, department of insurance to issue motor vehicle liability insurance policies; liability waived for the dept, its officers and employees, the state.

Summary

HB141 would create the Alabama Automobile Insurance Plan to provide motor vehicle liability coverage for high-risk drivers, overseen by a commissioner-approved governing committee, with policies issued in the plan’s name instead of a traditional insurer.

What This Bill Does

It establishes the Alabama Automobile Insurance Plan and lets the Commissioner of Insurance approve it. A governing committee approved by the commissioner administers the plan and can authorize service providers to issue policies in the plan’s name, along with policyholder and claims services. Policies issued under the plan are treated as if issued by an insurer authorized in Alabama and count as proof of financial responsibility; they also create no liability for the Department of Insurance, its officers or employees, or the state. Insurers authorized to issue auto liability policies must subscribe to and participate in the plan once approved, and the plan requires annual audited financial reporting with the possibility for implementing regulations; the act takes effect October 1, 2024.

Who It Affects

• High-risk drivers or applicants who cannot obtain ordinary motor vehicle liability insurance, who would obtain coverage through the Alabama Automobile Insurance Plan and use the plan’s policies as proof of financial responsibility.
• Insurance companies authorized to issue motor vehicle liability policies in Alabama, who must subscribe to and participate in the plan after it is approved.

Key Provisions

• Establishes the Alabama Automobile Insurance Plan and requires Commissioner of Insurance approval.
• Creates a governing committee to administer the plan; committee members must be approved by the commissioner.
• Allows the committee to authorize service providers to issue policies in the plan's name and to provide policyholder and claims services.
• Policies issued under the plan are treated as issued by an insurer authorized in Alabama and count as proof of financial responsibility.
• Policies issued under the plan do not create liability for the Department of Insurance, its officers or employees, or the state.
• Insurers authorized to issue motor vehicle liability policies must subscribe to and participate in the plan once approved.
• Applicants or insured individuals and affected insurers may appeal to the Commissioner of Insurance, with circuit court review available.
• The governing committee must annually file an audited financial report with the Commissioner.
• The Commissioner may establish regulations to implement the plan.
• Effective date is October 1, 2024.

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

Subjects

Insurance