Recently Enacted Laws

Contact: Reyn Norman, General Counsel
(334) 241-4116


Below please find information regarding new laws enacted in the State of Alabama during the 2012 Regular Legislative Session:


  • Health Benefit Plans required to Cover Autism Spectrum Disorder

Senate Bill 283, sponsored by Sen. Cam Ward

Act 12-298 – effective October 1, 2012

  • Requires health benefits plans to offer certain coverage for treatment of autism spectrum disorder for certain children in certain policies.


  • Producer Licensing Uniformity; Portable Electronics Insurance Regulated

House Bill 113, sponsored by Rep. Mike Hill

Act 12-312 – effective January 1, 2013

  • Adopts all NAIC producer uniformity standards.
  • Does away with all the CE exemptions, but includes a grandfather clause for those currently exempt.
  • Imposes fingerprinting for FBI background investigations on all new producers
  • Provides requirements for the sale of portable electronics insurance


  • ALDIGA Amendments

House Bill 403, sponsored by Rep. Ken Johnson.

Act 12-319 – effective January 1, 2012

  • Revises life & disability guaranty association law to more closely conform to current model legislation.
  • New limits of coverage as follows:
    • Death benefits in life insurance contracts: $300,000
    • Cash surrender values in life insurance:  $100,000
    • Disability income and LTC policies:  $300,000
    • Basic hospital, medical & surgical insurance:  $500,000
    • Any other disability insurance policy:  $100,000
    • Annuity contracts: $250,000
  • Maximum “Class A” assessment of $300 per year per member insurer


  • Domestic Insurer; Funds Deposit; Records

Senate Bill 164, sponsored by Sen. Slade Blackwell

Act 12-370 – effective May 14, 2012

  • Allows Alabama-domiciled insurers to deposit assets outside this state.


  • Property Insurance Clarity Act

Senate Bill 210, sponsored by Sen. Trip Pittman

Act 12-373 – effective August 1, 2012

  • Requires disclosure of certain information to the DOI for publication on DOI website.  First reports from insurers due 10/1/2013.


  • Writing of Coastal Insurance, Incentives

Senate Bill 230, sponsored by Sen. Ben Brooks

Act 12-374 – effective August 1, 2012

  • Gives premium tax credit to insurers writing in the coastal area.


  • Auto Insurance Discount, Amend 27-13-121; Safety Course, Allow Online

House Bill 193, sponsored by Rep. Mike Hill

Act 12-389 – effective August 1, 2012

  • Requires auto insurers to offer a discount for drivers completing motor vehicle accident preventions courses of not less than 6 hours of instruction.


  • Title Agent Licensing

House Bill 460, sponsored by Rep. Mike Hill

Act 12-397 – effective January 1, 2013

  • Basically puts same types of requirements of ordinary agents on title agents (Exams, CE, fingerprinting, etc.)


  • Catastrophe Savings Account; Tax Deduction

Senate Bill 227, sponsored by Sen. Ben Brooks

Act 12-413 – effective May 14, 2012

  • Gives benefits similar to retirement accounts that can be used to help pay deductibles or uninsured damage after storms. 
  • Department of Revenue to promulgate regulations.


  • Unclaimed Life Insurance Benefits Act

House Bill 126, sponsored by Rep. Greg Wren

Act 12-424 – effective January 1, 2014

  • Requires life insurers to search the death master file at least every 3 years against its in-force life insurance policies.


  • Insurance Fraud

House Bill 323, sponsored by Rep. Steve McMillan

Act 12-429effective August 1, 2012

  • Requires insurers to report suspected fraud  – info is confidential and reporting part has immunity  We will use the NAIC uniform reporting form.
  • Creates crime of Insurance Fraud – Class B Felony if over $1,000, Class C Felony if $1,000 and under
  • Authorizes Insurance Fraud Unit to have law enforcement officers as investigators and to directly prosecute them cases with the AG
  • For insurers, imposes a $200 annual assessment for the Insurance Fraud Unit Fund.


  • Homeowners Bill of Rights Act

House Bill 166, sponsored by Rep. Steve McMillan

Act 12-510 – effective for new policies or renewing policies on and after July 1, 2013

  • Requires insurers to provide customers with an annual checklist showing what the policy does and does not do.


  • Property and Casualty Insurance; Cancel Residential Roofing Contract

House Bill 405, sponsored by Rep. Mike Ball

Act 12-519 – effective August 1, 2012

  • Permits cancellation of residential roofing contract within 10 business days if insured receives notice from insurer that all or part of the contract is not covered under the policy.  Roofing contractor must give notice of this right.


You may access the above-mentioned acts directly from this page by clicking the act numbers or by visiting the Alabama Legislature’s web page at: