HB142 Alabama 2024 Session

Summary

Primary Sponsor

Corley Ellis Representative

Republican

Session

Regular Session 2024

Title

Insurance Dept, insurers required to be licensed, unauthorized insurers, exceptions for surplus line brokers, further provided for, authority for membership in the Surplus Line Insurance Multi-State Compliance Compact Act repealed.

Description

Under existing law, a person may not act as an agent for an insurance company unless the agent is licensed. The law allows an exception for surplus line brokers who issue policies under certain conditions when policies may not be available for certain coverages.

This bill would update the laws relating to surplus line brokers to adopt revisions to the Nonadmitted Insurance Model Act by the National Association of Insurance Commissioners (NAIC).

This bill would also adopt the federal exemption requirement for diligent search efforts, allow surplus line brokers to file reports on placed coverage quarterly rather than on a 30 day rolling basis, ensure nonresident surplus line brokers comply with the same requirements as resident surplus line brokers, codify broker fees while requiring disclosure in the policy for consumer protection, eliminate zero premium reporting, adopt the federal definition of home state, and repeal the Surplus Lines Insurance Multi-State Compliance Compact Act in this state.

HB142 INTRODUCED.

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Subjects

Insurance