HB142 Summary

• Updates Alabama's surplus line broker laws to align with the National Association of Insurance Commissioners (NAIC) Nonadmitted Insurance Model Act.

• Adopts federal exemption from diligent search requirements for surplus line transactions conducted under 15 U.S.C. § 8205 and adopts the federal definition of "home state" from 15 U.S.C. § 8206.

• Changes surplus line broker reporting from 30-day rolling basis to quarterly reports and eliminates zero premium reporting requirements.

• Establishes reasonable broker fees that must be itemized separately and disclosed in policies before purchase for consumer protection.

• Ensures nonresident surplus line brokers comply with the same requirements as resident brokers and repeals Chapter 61 of Title 27 (Surplus Lines Insurance Multi-State Compliance Compact Act).

• Becomes effective July 1, 2024.