SB 399 Summary

• Creates the Property Insurance Clarity Act requiring insurance companies operating in Alabama to submit annual reports by October 1 containing direct incurred losses, number of policies written, and direct earned premiums for homeowners and commercial property insurance, organized by county and zip code.

• Mandates the Alabama Department of Insurance compile submitted data into a statewide database and post aggregate information on its website by January 15, 2012, with annual updates broken down by eight specific perils including fire, wind/hail, water, theft, liability, and tornado.

• Requires the department to post a general description of rate-making methodology used by insurance companies for homeowner and commercial property rates on its website.

• Imposes penalties on non-compliant insurance companies including $2,500 daily fines for those exceeding a 90-day extension deadline and suspension from selling new policies if non-compliance continues beyond 30 additional days.

• Becomes effective on the first day of the third month following passage and approval by the Governor.