Alabama Insurance Code

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

Please note: laws enacted in 2021 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.

Act 2021-172 (SB-26, 2021 Regular Session) Amends Section 27-3-26.1 to provide for an opinion of an appointed actuary for property and casualty insurers and to permit an insurer to apply for an exception to the requirement based on exemptions set forth in the annuals statement instructions provided by the NAIC. The amendments become effective July 1, 2021.

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.

Act 2021-235 (HB-32, 2021 Regular Session) ). Revises the Credit for Reinsurance Law by amending Sections 27-5B-3, 27-5B-9, 27-5B-11, 27-5B-14, and 27-5B-19, and by adding Sections 27-5B-8.1 and 27-5B-20 to the Code of Alabama 1975, as necessary to conform Alabama law to recent revisions to NAIC Model Credit for Reinsurance Law; and thereby implementing the reinsurance collateral provisions of the covered agreements that were entered into between the United States and the European Union and the United Kingdom. The revisions become effective January 1, 2022.

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Chapter 8 Repealed.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Chapter 9 Repealed.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.

Act 2021-237 (HB-132, 2021 Regular Session) Amends Section 27-13-3 to specify that certain data and information filed by property and casualty insurers is to be considered confidential as trade secrets and held by the commissioner as separate and distinct from public records. The amendments became effective April 20, 2021.

Act 2021-174 (SB-69, 2021 Regular Session) Amends Section 27-13-21 so as to exempt flood insurance from the rate filing and approval requirement. The amendments became effective April 8, 2021.

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.

Act 2021-236 (HB-249, 2021 Regular Session) Requires health benefit plans that provide coverage for prescription insulin drugs to cap the amount of any cost-sharing or co-pay that an insured or a beneficiary under the plan is required to pay for a covered prescription insulin drug; and amends Sections 27-21A-23 and 10A-20-6.16, so as make the new law applicable to a health care service plan and a health maintenance organization. The act becomes effective October 1, 2021.

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.

Act 2021-162 (SB-23, 2021 Regular Session) Revises the Alabama Captive Insurers Act by amending Sections 27-31B-2, 27-31B-3, 27-31B-6, 27-31B-8, 27-31B-12, and 27-31B-13, and by adding Sections 27-31B-26, 27-31B-27, and 27-31B-28 to the Code of Alabama 1975; thereby revising certain definitions, authorizing insurance to be placed on risks in alien jurisdictions under certain circumstances, revising certain security requirements for the payment of liabilities attributable to branch operations. The act becomes effective July 1, 2021.

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.

Act 2021-397 (SB-136, 2021 Regular Session) Amends Section 27-36A-20 to further provide for a small company exception to the Standard Valuation Law. The amendment became effective May 13, 2021.

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.

Act 2021-341 (SB-227, 2021 Regular Session) Revises the Alabama Pharmacy Benefits Manager Licensure and Regulation Act by amending Sections 27-45A-3, 27-45A-4, 27-45A-5, 27-45A-6, and 27-45A-7, and by adding Sections 27-45A-8, 27-45A-9, 27-45A-10, 27-45A-11, and 27-45A-12 to the Code of Alabama 1975, to provide further for the regulation of pharmacy benefits managers. The act becomes effective July 1, 2021, and applies to pharmacy benefits manager contracts on and after October 1, 2021.

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 2021 Legislative Session regarding insurance:

  • Act 2021-162 (SB-23, 2021 Regular Session) Revises the Alabama Captive Insurers Act by amending Sections 27-31B-2, 27-31B-3, 27-31B-6, 27-31B-8, 27-31B-12, and 27-31B-13, and by adding Sections 27-31B-26, 27-31B-27, and 27-31B-28 to the Code of Alabama 1975; thereby revising certain definitions, authorizing insurance to be placed on risks in alien jurisdictions under certain circumstances, revising certain security requirements for the payment of liabilities attributable to branch operations. The act becomes effective July 1, 2021.

  • Act 2021-163 (SB-25, 2021 Regular Session) Adds Section 8-33-14 to the Code of Alabama 1975 to specify that any person being examined by the commissioner in the enforcement of Chapter 33 of Title 8 of the Code of Alabama 1975, the Vehicle Protection Product Act, would be liable for the expenses of the examination and to specify that all fees collected by the commissioner in the enforcement of the Vehicle Protection Product Act would be deposited into the Insurance Department Fund. The act became effective April 7, 2021.

  • Act 2021-172 (SB-26, 2021 Regular Session) Amends Section 27-3-26.1 to provide for an opinion of an appointed actuary for property and casualty insurers and to permit an insurer to apply for an exception to the requirement based on exemptions set forth in the annuals statement instructions provided by the NAIC. The amendments become effective July 1, 2021.

  • Act 2021-174 (SB-69, 2021 Regular Session) Amends Section 27-13-21 so as to exempt flood insurance from the rate filing and approval requirement. The amendments became effective April 8, 2021.

  • Act 2021-235 (HB-32, 2021 Regular Session) ). Revises the Credit for Reinsurance Law by amending Sections 27-5B-3, 27-5B-9, 27-5B-11, 27-5B-14, and 27-5B-19, and by adding Sections 27-5B-8.1 and 27-5B-20 to the Code of Alabama 1975, as necessary to conform Alabama law to recent revisions to NAIC Model Credit for Reinsurance Law; and thereby implementing the reinsurance collateral provisions of the covered agreements that were entered into between the United States and the European Union and the United Kingdom. The revisions become effective January 1, 2022.

  • Act 2021-236 (HB-249, 2021 Regular Session) Requires health benefit plans that provide coverage for prescription insulin drugs to cap the amount of any cost-sharing or co-pay that an insured or a beneficiary under the plan is required to pay for a covered prescription insulin drug; and amends Sections 27-21A-23 and 10A-20-6.16, so as make the new law applicable to a health care service plan and a health maintenance organization. The act becomes effective October 1, 2021.

  • Act 2021-237 (HB-132, 2021 Regular Session) Amends Section 27-13-3 to specify that certain data and information filed by property and casualty insurers is to be considered confidential as trade secrets and held by the commissioner as separate and distinct from public records. The amendments became effective April 20, 2021.

  • Act 2021-341 (SB-227, 2021 Regular Session) Revises the Alabama Pharmacy Benefits Manager Licensure and Regulation Act by amending Sections 27-45A-3, 27-45A-4, 27-45A-5, 27-45A-6, and 27-45A-7, and by adding Sections 27-45A-8, 27-45A-9, 27-45A-10, 27-45A-11, and 27-45A-12 to the Code of Alabama 1975, to provide further for the regulation of pharmacy benefits managers. The act becomes effective July 1, 2021, and applies to pharmacy benefits manager contracts on and after October 1, 2021.

  • Act 2021-379 (HB-279, 2021 Regular Session) Amends Section 35-11-371, providing the circumstances under which a hospital may perfect a lien against an injured person. The act becomes effective August 1, 2021.

  • Act 2021-397 (SB-136, 2021 Regular Session) Amends Section 27-36A-20 to further provide for a small company exception to the Standard Valuation Law. The amendment became effective May 13, 2021.