HB142 Summary

• Amends Section 27-12A-2 of the Code of Alabama 1975 to revise the definition of insurance fraud by deleting inapplicable language regarding deductible payment schemes.

• Clarifies that insurers, reinsurers, and other insurance entities may destroy records in accordance with state or federal law and their own retention policies without violating fraud provisions.

• Amends Section 27-27-26 to delete outdated language regarding restrictions on domestic insurer officers and directors, specifically correcting language that was not properly amended by Act 2012-370.

• Adds overcharging an insurer or insured for goods or services as an insurance fraud offense when the charge exceeds usual and customary rates as part of an insurance claim for damage.

• Became effective immediately upon passage and approval by the Governor on May 20, 2013.