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Recently Enacted Laws

Producer Licensing & Prompt Pay

Contact: Reyn Norman, Associate Counsel

334-241-4116

2/5/2002

Below please find information regarding recently enacted laws in the State of Alabama:

  • Act No. 2001-702 (Senate Bill 427, 2001 Regular Session), effective January 1, 2002.
    • This legislation was designed to make Alabama’s law substantially similar to the Producer Licensing Model Act developed by the National Association of Insurance Commissioners, thus bringing Alabama law into compliance with federal reciprocity and uniformity requirements of the Gramm-Leach-Bliley Act.

    • For information regarding changes in Producer Licensing requirements, please visit the Producer Licensing section of this web site.

    • Included in the revisions under this act was the repeal of Section 27-3-28, Code of Alabama 1975, known as the countersignature law. Thus there is no longer an Alabama requirement for property, casualty and surety insurers to have all of their Alabama policies countersigned by an Alabama-resident agent. Please note, however, that Alabama’s retaliatory law (Section 27-3-29) is still in effect; thus, insurers domiciled in states that still have a countersignature law will be subject to their home states’ countersignature laws on policies issued in this state.


  • Ala. Act No. 2001-445 (House Bill 164, 2001 Regular Session); amended by Ala. Act No. 2001-1060 (Senate Bill 29, 2001 4th Special Session), effective August 1, 2001.

    • This legislation, known as the Prompt Pay Act, amended Section 27-1-17, Code of Alabama 1975, to set forth certain time frames within which health insurance claims must be paid.

You may access the above-mentioned acts directly from this page or by visiting the Alabama Legislature’s web page at http://www.legislature.state.al.us/.

You may also access the Code of Alabama on-line by visiting the Alabama Legislature’s web page at www.legislature.state.al.us/CodeofAlabama/1975/coatoc.htm.