House Bill 296 Alabama 2026 Session

Updated Feb 19, 2026

Summary

Primary Sponsor: Chip BrownRepresentative
Republican
Session: 2026 Regular Session
Title: Consumer Protection, Rental Home Marketplace Guarantees Act created
Summary: Alabama would regulate rental home marketplace guarantees by requiring disclosure, registration, and insurance backing, with state oversight to protect consumers.
What This Bill Does
If enacted, the act creates a formal framework for rental home marketplace guarantees. Providers must make guarantee terms available on their website and register with the Alabama Insurance Commissioner by March 1, 2027, and obtain a reimbursement insurance policy by July 1, 2027. The guarantees themselves are not insurance, but the policy backs the provider’s obligations, and consumers can file claims with the insurer if the provider fails to perform, after notice and within defined timeframes.

Who It Affects
Rental home marketplace providers (platforms) operating in Alabama — they must disclose guarantee terms, register with the commissioner, obtain reimbursement insurance, and comply with advertising and enforcement provisions.
Platform contract holders/customers (consumers who use the platforms and rely on guarantees) — they gain an avenue to claim directly against the insurer if the provider defaults, and are protected by enforcement authority and remedies against violations.

Key Provisions
Section 2 defines key terms: Commissioner's role, provider, platform contract holder, reimbursement insurance policy, and Rental Home Marketplace.
Section 3(a) guarantees may not be issued unless terms are available on the provider’s website and the act is complied with; Sections 3(b)-(c) require registration by March 1, 2027 and a reimbursement insurance policy by July 1, 2027, with fees deposited to the Insurance Department Fund.
Section 4 clarifies that guarantees are not insurance and are not governed by Alabama insurance laws except as provided in the act.
Section 5 requires reimbursement policies to state insurer will cover provider obligations, allows insurer reimbursement to the provider, and preserves insurer rights to seek reimbursement from the provider.
Section 6 mandates clear language in guarantees, includes a provision that a reimbursement policy backs the provider, and allows direct claims against the insurer after 180 days; prohibits misleading statements.
Section 7 grants the Commissioner enforcement powers (investigations, orders, penalties, hearings, and injunctive relief) and provides for restitution and penalties up to $500 per violation and up to $10,000 aggregate for similar violations.
Section 8 authorizes regulations to implement the act.
Section 9 states the act becomes effective on October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 17, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Consumer Protection