Alabama Department of Insurance Schedules July Hearing On Personal Property By-Peril Rating Requirements, Other Insurance-Related Regulations

 

The Alabama Department of Insurance (“ALDOI”) has scheduled a hearing on the adoption of various proposed insurance regulations, including Regulation No. 152, which requires that specified classes of personal lines property insurance rate filings must provide separate rates (including rating factors, rate or premium credits or surcharges, or rating tiers) for hurricane coverage, all other wind/hail coverage and all other perils. 

The hearing is scheduled at 10:00 a.m. (Central Time), on Wednesday, July 24, 2013 in the ALDOI offices (201 Monroe Street, Suite 502, Main Conference Room, RSA Tower, Montgomery, Alabama).  To view the notice, click here.

Under the provisions of Regulation 152, all rating factors, rate or premium credits or surcharges, or rating tiers utilized in a premium calculation must be filed, approved and applied separately for hurricane, all other wind/hail, and all other perils.  All must be filed and approved before use, as well as actuarially supported.  This applies to:

• All homeowner, renters/tenants and condominium rate filings made to the ALDOI to be effective on or after January 1, 2018.  All such rate filings shall be made on or before September 1, 2017.
• All dwelling fire rate filings made to the ALDOI to be effective on or after January 1, 2019.  These shall be made on or before September 1, 2018.

In addition, the policy declaration page or billing statement must show separate premiums for hurricane coverage, all other wind/hail coverage and all other perils coverage, as well as a total premium for the policy.  Premiums for voluntary endorsements are not required to be separated by peril.  Insurers can further subdivide “all other perils” into additional perils for rating purposes.  This applies to:

• New homeowners, renters/tenants, and condominium business with effective date on or after January 1, 2018, and to existing policies with a renewal date on or after January 1, 2018
• New dwelling fire policies effective on or after January 1, 2019 and existing with renewal date on or after January 1, 2019

Also on the July 24 hearing agenda is the adoption of the following proposed insurance-related regulations:

• Regulation No. 153 [Chapter 482-1-153], setting forth the requirements the Alabama Insurance Commissioner deems necessary to carry out the provisions of Chapter 22A of Ala. Code Tit. 27 relating to the licensing of portable electronics insurance vendors as limited insurance producers; and to set forth the procedures for the renewal of licenses of portable electronics insurance vendors as insurance producers.
• Regulation No. 154 [Chapter 482-1-154], prescribing the consequences for failure of payments due to the ALDOI.
• Regulation No. 155 [Chapter 482-1-155], setting forth the charge for publication of certain materials for public distribution by the ALDOI.

Copies of all proposed regulations are attached for review.

 

 

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