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AL HB724
Bill
Status
4/19/2012
Primary Sponsor
Yvonne Kennedy
Click for details
AI Summary
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Prohibits application of hurricane deductibles or percentage deductibles for wind and hail damage caused by sources other than named hurricanes or tropical storms as declared by the National Hurricane Center
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Requires personal lines insurance policies offering percentage deductibles for wind and hail to provide a voluntary buy-back provision that is actuarially sound and does not exceed one percent of dwelling limits
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Allows the Insurance Commissioner discretion to grant waivers from the buy-back requirement if an insurance company demonstrates it is in the best interest of Alabama policyholders
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Establishes penalties for violations including fines up to $10,000 per separate violation and potential revocation or suspension of an insurer's license
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Directs the Department of Insurance to promulgate rules necessary to implement and administer the provisions; becomes effective immediately upon passage and gubernatorial approval
Legislative Description
Property insurance, hurricane deductible only applied on damages from named hurricane or tropical storm, certain personal lines insurance policies to offer voluntary buy-back provision, penalties
Property, Real and Personal
Last Action
Read for the first time and referred to the House of Representatives committee on Insurance
4/19/2012