HB221 Alabama 2024 Session

Updated Feb 23, 2026

Low Interest

Summary

Primary Sponsor: Corley EllisRepresentative
Republican
Session: Regular Session 2024
Title: Insurance, internal citations to the Code of Alabama corrected
Summary: HB221 fixes outdated internal cross-references in Alabama's insurable interest and life insurance loan laws by updating Sections 27-14-3 and 27-15-8 to point to the correct Code of Alabama sections.
What This Bill Does
It updates the internal citations in two insurance-related code sections to refer to the correct Code of Alabama 1975 sections. The bill does not change the underlying insurable interest rules or loan provisions; it simply aligns references and remains consistent with existing law, including retroactive considerations for certain policies and trusts. It becomes effective on June 1, 2024.

Who It Affects
Insurance companies and policyholders, who rely on correctly cross-referenced statutes for insurable interest rules and policy loan provisions.
Trusts, preneed contract purchasers/beneficiaries, and charitable organizations (501(c)(3)) and their counsel, who rely on insurable interest rules and ownership arrangements described in these sections.

Key Provisions
Sections 27-14-3 and 27-15-8 are amended to correct internal citations to the proper Code sections (no substantive change to insurable interest or loan rules).
The bill preserves existing insurable interest concepts (including unlimited insurable interest in one’s own life; corporate and fiduciary interests; and charitable organization eligibility) and includes retroactivity language related to certain policies and trusts.
Section 27-15-8 includes loan-related provisions for policies with cash surrender value, such as advances against policy value with interest (up to 8% per year), security requirements, and automatic premium loan options (term policies are excluded).
Effective date: June 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