Below please find information
regarding new laws enacted in the State of Alabama during the 2012 Regular
Benefit Plans required to Cover Autism Spectrum Disorder
Senate Bill 283, sponsored by Sen. Cam
Act 12-298 – effective October
Requires health benefits plans to
offer certain coverage for treatment of autism spectrum disorder for certain
children in certain policies.
Licensing Uniformity; Portable Electronics Insurance Regulated
House Bill 113, sponsored by Rep. Mike
Act 12-312 – effective January 1, 2013
Adopts all NAIC producer uniformity standards. Does away with all the CE exemptions, but includes a grandfather clause for those currently exempt. Imposes fingerprinting for FBI background investigations on all new producers Provides requirements for the sale of portable electronics insurance
House Bill 403, sponsored by Rep. Ken
Act 12-319 – effective January
Revises life & disability guaranty association law to more closely conform to current model legislation. New limits of coverage as follows: Death benefits in life insurance contracts: $300,000 Cash surrender values in life insurance: $100,000 Disability income and LTC policies: $300,000 Basic hospital, medical & surgical insurance: $500,000 Any other disability insurance policy: $100,000 Annuity contracts: $250,000 Maximum “Class A” assessment of $300 per year per member insurer
Insurer; Funds Deposit; Records
Senate Bill 164, sponsored by Sen.
Act 12-370 – effective May 14,
Alabama-domiciled insurers to deposit assets outside this state.
Insurance Clarity Act
Senate Bill 210, sponsored by Sen.
Act 12-373 – effective August
Requires disclosure of certain
information to the DOI for publication on DOI website. First reports from insurers due 10/1/2013.
of Coastal Insurance, Incentives
Senate Bill 230, sponsored by Sen. Ben
Act 12-374 – effective August
Gives premium tax credit to insurers
writing in the coastal area.
Insurance Discount, Amend 27-13-121; Safety Course, Allow Online
House Bill 193, sponsored by Rep. Mike
Act 12-389 – effective August
Requires auto insurers to offer a
discount for drivers completing motor vehicle accident preventions courses of
not less than 6 hours of instruction.
House Bill 460, sponsored by Rep. Mike
Act 12-397 – effective January
puts same types of requirements of ordinary agents on title agents (Exams, CE,
Savings Account; Tax Deduction
Senate Bill 227, sponsored by Sen. Ben
Act 12-413 – effective May 14,
Life Insurance Benefits Act
House Bill 126, sponsored by Rep. Greg
Act 12-424 – effective January
Requires life insurers to search the
death master file at least every 3 years against its in-force life insurance
House Bill 323, sponsored by Rep.
Act 12-429 – effective August 1, 2012
Requires insurers to report suspected fraud – info is confidential and reporting part has immunity We will use the NAIC uniform reporting form. Creates crime of Insurance Fraud – Class B Felony if over $1,000, Class C Felony if $1,000 and under Authorizes Insurance Fraud Unit to have law enforcement officers as investigators and to directly prosecute them cases with the AG For insurers, imposes a $200 annual assessment for the Insurance Fraud Unit Fund.
Bill of Rights Act
House Bill 166, sponsored by Rep.
Act 12-510 – effective for new
policies or renewing policies on and after July 1, 2013
Requires insurers to provide customers
with an annual checklist showing what the policy does and does not do.
Property and Casualty Insurance; Cancel Residential Roofing Contract
House Bill 405, sponsored by Rep. Mike
Act 12-519 – effective August 1,
Permits cancellation of residential
roofing contract within 10 business days if insured receives notice from
insurer that all or part of the contract is not covered under the policy. Roofing contractor must give notice of this
You may access the above-mentioned
acts directly from this page by clicking the act numbers or by visiting the
Alabama Legislature’s web page at: http://www.legislature.state.al.us/index.html.