SB47 Alabama 2024 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

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 department, its officers and employees, the state.

Summary

The bill creates the Alabama Automobile Insurance Plan to provide motor vehicle liability coverage for people who cannot obtain it through ordinary methods, under oversight by the Insurance Commissioner with protections for the state and the Department of Insurance.

What This Bill Does

It establishes the Alabama Automobile Insurance Plan and requires the Commissioner of Insurance to approve it. The plan is administered by a governing committee approved by the Commissioner and may hire service providers to issue policies in the plan’s name. Policies issued under the plan are treated as if issued by a licensed insurer and can serve as proof of financial responsibility, but they do not create liability for the Department of Insurance, its officers or employees, or the state. The plan will equitably apportion costs among participating insurers and require annual audited financial reports; regulations to implement the plan may be issued by the Commissioner, and the act takes effect October 1, 2024.

Who It Affects

• People who need motor vehicle liability insurance but cannot obtain it through ordinary methods will be able to obtain coverage through the Alabama Automobile Insurance Plan.
• Insurance companies authorized to issue motor vehicle liability policies in Alabama (and any service providers authorized by the plan) will participate in the plan and may issue policies in the plan’s name.

Key Provisions

• Establishes the Alabama Automobile Insurance Plan to provide coverage to applicants who are unable to obtain standard policies, with approval by the Commissioner of Insurance.
• Plan is administered by a governing committee approved by the Commissioner; the committee may authorize service providers to issue policies in the plan’s name.
• Policies issued under the plan are treated as if issued by an insurer authorized in Alabama and serve as valid proof of financial responsibility; they do not create liability for the Department of Insurance, its officers or employees, or the state.
• All insurers authorized to issue motor vehicle liability policies in Alabama must subscribe to and participate in the plan; costs are equitably apportioned among participating insurers.
• Governing committee must file an annual audited financial report; the Commissioner may establish regulations to implement the plan.
• There is an appeals process for applicants, insureds, and insurers, including potential review by the Circuit Court of Montgomery County.
• Effective date is October 1, 2024.
• This section does not revoke any exceptions granted to the automobile assigned risk plan under other provisions of law.

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