General Guidelines for Property and Casualty Insurance Rate and Form Filings
Rate filing issues addressed within Title 27, Chapter 13, Code of Alabama,
1975:
- Commissioner's Regulatory Authority
- Rate Filings
- Disapproval of Rates
- Rate Increases
- Application for Rate Increase or Decrease
- Ratemaking Standards
- Amendment of Rating Systems
- Senior Driver Discount
When Rate change filings are submitted, whether commercial or personal lines, the
following must now appear as the first exhibit of the actuarial data which accompanies
the filing. This does not eliminate any existing filing requirements.
- A five year rate change history
- The proposed rate impact by territory must be identified for the proposed filing
- A histogram showing the percentage of insured's falling with a range of premium
increase. i.e. (0-10%, 10-20% increase, etc.)
- An indication exhibit to include loss, expense and investment income information
using Alabama and, if necessary, countrywide data.
Form filing issues addressed within Title 27, Chapter 14, Code of Alabama,
1975:
- Filing and Approval of Forms
- Disapproval of Forms
- Policy Contents
- Execution of Policy
- Renewal by Certificate or Endorsement
Other related rate and/or form filing guidelines:
- Punitive damage exclusions for liability policies covering bodily injury are not
allowed for cases involving wrongful death. This is based on a February 1, 1978,
Attorney General's advisory opinion on this issue. Also, punitive damage exclusions
are not allowed for uninsured motorist coverage based on a recent Alabama Supreme
Court Decision titled Omni vs. Foreman.
- Cancellation Clause - Less than pro-rata is acceptable for situations where the
insured has requested cancellation, however, less than pro-rata is defined as .90
of pro-rata unless statistical justification is provided to support another short-rate
methodology. If a company does not define " less than pro-rata" in their form, it
must be defined in their rule and rate manual.
- Guidelines for Arbitration Agreements - Administrative Bulletin Dated March 5, 1998
- Industrial Fire Insurance Policies - Regulation No. 9
- Credit Property and Involuntary Unemployment Insurance - Regulation No. 93
- Surcharges for Accidents Caused by Defective Tires - Administrative Bulletin Dated
September 21, 2000
- Policy and Billing Procedure - Administrative Bulletin Dated July 21, 2021
- Prohibited Policy Cancellation and Nonrenewals - Administrative Bulletin Dated November 4, 2010
- Schedule rating credits are limited to +/- 25% in Alabama.
- Domestic Abuse Insurance Protection Act, codified as Sections 27-55-7, et seq.,
Code of Alabama, 1975