Alabama Insurance Code

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Please note: laws enacted in 2019 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.

Chapter 8 Repealed.

Chapter 8A Continuing Education Requirements.

Chapter 9 Repealed.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.

Chapter 29A Own Risk and Solvency Assessment.

Chapter 29B Corporate Governance Annual Disclosure.

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.

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 36A Standard Valuation Law.

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.

Chapter 43 Legal Expense Insurance.

Chapter 44 Life and Disability Insurance Guaranty Association.

Chapter 45 Pharmaceutical Insurance Coverage.

Chapter 45A Alabama Pharmacy Benefits Manager Licensure and Regulation Act.

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.

Chapter 62 Insurance Data Security Law.

Acts of the 2019 Legislative Session regarding insurance:

  • Act 2019-98 (SB-54, 2019 Regular Session) Requires insurers and other entities licensed by the Department of Insurance to develop, implement, and maintain an information security program; provides for reporting to the Commissioner of Insurance, including the reporting of cybersecurity events; provides that information provided to the commissioner pursuant to the act is confidential and privileged under certain conditions; provides civil penalties under certain conditions; and amends Sections 10a-20-6.16 and 27-21A-23, Code of Alabama 1975 (effective May 1, 2019).

  • Act 2019-97 (SB-52, 2019 Regular Session) Adds Chapter 29B to Title 27, Code of Alabama 1975, requires insurers domiciled in this state to provide information to the Commissioner of Insurance on an annual basis regarding the corporate governance practices of the insurer; provides that certain information is confidential and privileged under certain conditions. Also, amends Section 27-29-1 and 27-29-7, Code of Alabama 195, relating to insurance holding company systems, provides a definition of internationally active insurance groups and to specify that documents, materials, and other information filed with the Commissioner of Insurance relative to the group-wide supervision of an internationally active insurance group are confidential and privileged. (effective January 1, 2020).

  • Act 2019-99 (SB-62, 2019 Regular Session) Amends Section 8-36-2, Code of Alabama 1975, to allow a person to cancel a roofing contract with five days of receiving written notice form the insurer that all or part of the claim or contract is a not covered loss under the insurance policy or that the covered claim will not be sufficient to cover the amount of the contract. (effective August 1, 2019).

  • Act 2019-177 (HB-106, 2019 Regular Session) Amends Section 27-2-7, Code of Alabama 1975, to authorize the Commissioner of Insurance to create educational and informational programs and presentations for consumers; and amends Section 27-22-21, to add hurricanes and nonhurricane wind and hail within the list of perils that insurers writing homeowners insurance are required to provide information regarding to the department pursuant to the Property Insurance Clarity Act. (effective May 15, 2019).

  • Act 2019-240 (HB-283, 2019 Regular Session) Adds Section 27-31D-2.1 to the Code of Alabama 1975, requires all insurance companies writing homeowners insurance to offer an endorsement that upgrades a home to a fortified standard adopted by the Institute for Business and Home Safety (IBHS) when the insured incurs damage covered by the policy that will require the roof to be replaced; specifies when the endorsement shall be made; requires insurance companies to file the endorsement and accompanying rates at least 90 days before the effective date of the act; authorizes the Commissioner of Insurance to adopt rules to implement the act. (effective January 1, 2020).

  • Act 2019-242 (HB-363, 2019 Regular Session) Amends Section 27-31E-3, Code of Alabama 1975, to require the Strengthen Alabama Homes Program within the Department of Insurance to maintain as confidential all documents, materials, and other information submitted by property owners and insurance companies in support of grant applications. (effective May 22, 2019).

  • Act 2019-273 (HB-11, 2019 Regular Session) Amends Sections 35-11-371 and 35-11-372, Code of Alabama 1975, to require a hospital that provides medical treatment to an injured person to seek compensation solely from that person’s health insurance provider, with the exception of approved copayments and deductibles, unless certain circumstances apply; and to allow a hospital to perfect a hospital lien against any recovery the injured person may be awarded for injuries by way of settlement or judgment in certain circumstances. (effective August 1, 2019).

  • Act 2019-457 (SB-73, 2019 Regular Session) To prohibit pharmacy benefit managers from preventing pharmacies and pharmacists from disclosing information on the amount an individual would pay for a prescription drug if he or she does not have an insurance plan, benefits, discounts, or if an individual paid for a prescription without using their pharmacy benefits; and to require pharmacy benefit managers to register with the Department of Insurance. (effective June 7, 2019).

  • Act 2019-460 (HB-139, 2019 Regular Session) To require a lender to provide notice to an insured when an insurance payment is withheld and the conditions for release of the insurance payment; to require a lender to release an insurance payment or provide the detailed conditions for release of the payment upon request of the payment by an insured; and to charge a lender interest on the insurance payment for failure to properly release an insurance payment or provide the detailed conditions for release. (effective August 1, 2019).