Alabama Insurance Code

Title 27, Code of Alabama 1975

View or Search the Code -- Click on the “View Code of Alabama” or “Search Code of Alabama”.

Please note: laws enacted in 2018 are listed after the chapter they amend and again at the bottom of this page.

Table of Contents

Chapter 1 General Provisions.

Chapter 2 Department and Commissioner of Insurance.

Chapter 2A Disclosure of Material Transactions.

Chapter 2B Risk-Based Capital for Insurers.

Chapter 3 Authorization of Insurers.

Chapter 3A Health Care Service Utilization Review Act.

Chapter 4 Fees and Taxes.

Chapter 4A Insurance Premium Tax.

Chapter 5 Kinds of Insurance; Limits of Risk; Reinsurance.

Chapter 5A Reinsurance Intermediaries.

Chapter 5B Credit for Reinsurance.

Chapter 6 Administration of Deposits.

Chapter 6A Managing General Agents.

Chapter 6B Business Transacted with Producer Controlled Property and Casualty Insurer Law.

Chapter 7 Various Insurance Representatives.

Act 2018-455 (HB-419, 2018 Regular Session) Amends Section 27-7-1 to include self-service storage facility insurance within the definition of limited lines insurance; adds Section 27-7-5.3 to provide for a limited license as an insurance producer to self-service storage facilities; and to clarify that self-storage facilities are not engaged in the transaction of insurance under existing law. (effective June 1, 2018).

Chapter 8 Repealed.

Chapter 8A Continuing Education Requirements.

Act 2018-196 (HB-125, 2018 Regular Session) Amends Sections 27-8A-1 and 27-8A-2, to specify that insurance producers and service representatives are required to complete continuing education requirements prior to renewing a license; to delete the provisions for extensions; and to authorize the Insurance Commissioner to assess a fine in lieu of suspension of license for violation of the continuing education requirements under certain conditions. (effective January 1, 2019).

Chapter 9 Repealed.

Chapter 9A Independent Adjusters.

Chapter 10 Unauthorized Insurers and Surplus Lines.

Chapter 11 Mail Order Insurance.

Chapter 12 Trade Practices Law.

Chapter 12A Insurance Fraud Investigation Unit and Crime Prevention Act.

Chapter 13 Rates and Rating Organizations.

Chapter 14 The Insurance Contract.

Chapter 15 Life Insurance and Annuity Contracts.

Chapter 16 Industrial Life Insurance.

Chapter 17 Burial Insurance Policies.

Chapter 17A Preneed Funeral and Cemetery Act.

Chapter 18 Group Life Insurance.

Chapter 19 Disability Insurance Policies.

Chapter 19A Dental Care Services.

Chapter 20 Group and Blanket Disability Insurance.

Chapter 20A Alcoholism Treatment in Group Plans.

Chapter 21 Alabama Health Care Plan.

Chapter 21A Health Maintenance Organizations.

Chapter 21B Medical Support Health Care Access Act.

Chapter 22 Property Insurance Contracts.

Chapter 22A Portable Electronics Insurance.

Chapter 23 Casualty Insurance Contracts.

Chapter 24 Surety Insurance Contracts.

Chapter 25 Title Insurance.

Chapter 26 Medical Liability Insurance.

Chapter 27 Organization and Corporate Procedures of Stock and Mutual Insurers.

Chapter 28 Holding Companies.

Chapter 29 Insurance Holding Company Systems.

Act 2017-228 (HB-94, 2017 Regular Session) Amends Section 27-29-1, regarding Insurance Holding Company Act definitions of “Group-Wide Supervisor” and “Insurer” (effective May 4, 2017); amends Section 27-29-4, removing small company exemption from filing Enterprise Risk Report (effective January 1, 2019); amends Section 27-29-7, to permit sharing of confidential information with NAIC (effective May 4, 2017); and adds Section 27-29-6.2, regarding Group-wide Supervision of internationally active insurance group (effective May 4, 2017).

Chapter 29A Own Risk and Solvency Assessment.

Chapter 30 Mutual Aid Associations.

Chapter 31 Reciprocal Insurers.

Chapter 31A Risk Retention Act.

Chapter 31B Alabama Captive Insurers Act.

Chapter 31C Alabama Coastal Captive Insurance Company Act.

Chapter 31D Homeowners Insurance Discount for Windstorm Mitigation.

Act 2018-249 (HB-279, 2018 Regular Session) Amends Sections 27-31D-1 and 27-31D-2, to remove the requirement that insurance customers submit copies of construction records to insurers to qualify for premium discounts for properties certified as meeting certain fortification building standards and to require instead for the submission of evidence of construction certification. (effective March 15, 2018).

Chapter 31E Strengthen Alabama Homes Act.

Chapter 32 Rehabilitation, Reorganization, Conservation, and Liquidation of Insurers.

Chapter 33 Trusteed Assets of Alien Insurers.

Chapter 34 Fraternal Benefit Societies.

Chapter 35 Conversion of Fraternal Benefit Societies.

Chapter 36 Liabilities.

Chapter 37 Assets.

Chapter 38 Separate Accounts and Variable Annuities.

Chapter 39 Automobile Clubs and Associations.

Chapter 40 Insurance Premium Finance Companies.

Chapter 41 Investments of Domestic Insurers and Health Maintenance Organizations.

Chapter 42 Insurance Guaranty Association.

Act 2018-526 (SB-283, 2018 Regular Session) Amends Sections 27-42-3, 27-42-5, 27-42-8, 27-42-11, and 27-42-12, to conform certain provisions to the most recent model act; to define additional terms; to provide for the obligation of the association to pay covered claims before an order of liquidation of an insolvent insurer; to raise the cap for statutory benefits available for a covered claims from $150,000 to $300,000; and to provide for an aggregate cap. (effective July 1, 2018).

Chapter 43 Legal Expense Insurance.

Chapter 44 Life and Disability Insurance Guaranty Association.

Chapter 45 Pharmaceutical Insurance Coverage.

Chapter 46 Certified Registered Nurse Anesthetist Coverage.

Chapter 47 Long-Term Care Insurance Contracts.

Chapter 48 Postpartum Care Coverage in Health Benefit Plans.

Chapter 49 Obstetricians and Gynecologists as Primary Care Physician.

Chapter 50 Breast Cancer Screening Act.

Chapter 51 Licensed Physician Assistant Supervision Coverage.

Chapter 52 Alabama Health Insurance Plan and Alabama Small Employer Allocation Program.

Chapter 53 Genetic Testing for Cancer.

Chapter 54 Mental Illness Coverage in Health Benefit Plans.

Chapter 54A Autism Spectrum Disorder Coverage in Health Benefit Plans.

Chapter 55 Domestic Abuse Insurance Protection Act.

Chapter 56 Access to Eye Care Act.

Chapter 57 Colorectal Cancer Examinations.

Chapter 58 Prostate Cancer Early Detection Coverage.

Chapter 59 Chiropractic Coverage.

Chapter 60 Interstate Insurance Product Regulation Compact.

Chapter 61 Surplus Lines Insurance Multi-State Compliance Compact Act.

Acts of the 2018 Legislative Session regarding insurance:

  • Act 2018-455 (HB-419, 2018 Regular Session) Amends Section 27-7-1 to include self-service storage facility insurance within the definition of limited lines insurance; adds Section 27-7-5.3 to provide for a limited license as an insurance producer to self-service storage facilities; and to clarify that self-storage facilities are not engaged in the transaction of insurance under existing law. (effective June 1, 2018).

  • Act 2018-196 (HB-125, 2018 Regular Session) Amends Sections 27-8A-1 and 27-8A-2, to specify that insurance producers and service representatives are required to complete continuing education requirements prior to renewing a license; to delete the provisions for extensions; and to authorize the Insurance Commissioner to assess a fine in lieu of suspension of license for violation of the continuing education requirements under certain conditions. (effective January 1, 2019).

  • Act 2018-249 (HB-279, 2018 Regular Session) Amends Sections 27-31D-1 and 27-31D-2, to remove the requirement that insurance customers submit copies of construction records to insurers to qualify for premium discounts for properties certified as meeting certain fortification building standards and to require instead for the submission of evidence of construction certification. (effective March 15, 2018).

  • Act 2018-526 (SB-283, 2018 Regular Session) Amends Sections 27-42-3, 27-42-5, 27-42-8, 27-42-11, and 27-42-12, to conform certain provisions to the most recent model act; to define additional terms; to provide for the obligation of the association to pay covered claims before an order of liquidation of an insolvent insurer; to raise the cap for statutory benefits available for a covered claims from $150,000 to $300,000; and to provide for an aggregate cap. (effective July 1, 2018).

Acts of the 2017 Legislative Session regarding insurance becoming effective January 1, 2019:

  • Act 2017-228 (HB-94, 2017 Regular Session) Amends Section 27-2B-9, regarding the use of RBC Reports and other Confidential Information (effective May 4, 2017), amends Section 27-29-1, regarding Insurance Holding Company Act definitions of “Group-Wide Supervisor” and “Insurer” (effective May 4, 2017); amends Section 27-29-4, removing small company exemption from filing Enterprise Risk Report (effective January 1, 2019); amends Section 27-29-7, to permit sharing of confidential information with NAIC (effective May 4, 2017); and adds Section 27-29-6.2, regarding Group-wide Supervision of internationally active insurance group (effective May 4, 2017).