Recently Enacted Laws

Contact: Mark Fowler, Chief of Staff
(334) 241-4146


Below please find information regarding new laws enacted in the State of Alabama during the 2016 Regular Legislative Session:

  • Department of Insurance Bills

    • Principle-Based Reserving
      Senate Bill 169, sponsored by Sen. Slade Blackwell
      Act 2016-411 - effective January 1, 2017
      The Principle-Based Reserving (PBR) act conforms Alabama law to the current model acts developed by the National Association of Insurance Commissioners for the Standard Valuation Law and Standard Nonforfeiture Law for Life Insurers.

    • Own Risk Solvency Assessment (ORSA)
      Senate Bill 170, sponsored by Sen. Slade Blackwell
      Act 2016-386 - effective January 1, 2017
      This new law requires certain insurance companies to issue their own assessment of current and future risks through an internal risk assessment process, thus allowing the regulator to form an enhanced view of the insurer’s ability to withstand financial stress.

    • Mitigation Loans by Premium Finance Companies
      Senate Bill 353, sponsored by Sen. Bill Hightower
      Act 2016-396 - effective August 1, 2016
      The new law authorizes Premium Finance Companies to provide wind mitigation construction financing, subject to approval by the Commissioner of Insurance.

  • Other Insurance Legislation

    • Amendments to Section 8-32-2 - Service Contracts Definitions
      House Bill 7, sponsored by Rep. Mike Hill
      Act 2016-101 - effective July 1, 2016
      Amendments to Section 8-32-2, Code of Alabama 1975, regarding service contract benefits, defines the term “road hazard” and specifies the damages caused by a road hazard that would be covered by a service contract.

    • Adjuster License, Exam Exemption for Staff Adjusters
      House Bill 97, sponsored by Rep. Joe Faust
      Act 2016-341 - effective May 11, 2016
      Amendment to Section 27-9A-9, regarding the independent adjuster license examination requirements, providing an exception for certain former staff adjusters.

    • Title Agent License, license exemption for licensed Attorneys
      House Bill 129, sponsored by Rep. Jim Hill
      Act 2016-296 - effective May 10, 2016
      Exempts attorneys licensed by the Alabama State Bar Association for licensing as a title insurance agent.

    • Captive Insurance Companies.
      House Bill 270, sponsored by Rep. David Faulkner
      Act 2016-191 - effective July 1, 2016
      Revises several provisions in Chapter 31B relating to Captive Insurers.

    • Insurer Delinquency Provisions for insurer members of Federal Home Loan bank.
      House Bill 370, sponsored by Rep. A.J. McCampbell
      Act 2016-367 - effective August 1, 2016
      Provides provisions specific to federal home loan banks and insurer members of those banks in insurer delinquency proceedings.

    • Insurance Coverage for Transportation Network Companies.
      Senate Bill 262, sponsored by Sen. Shay Shelnutt
      Act 2016-409 - effective August 1, 2016
      Provides certain insurance requirements for a transportation network company that operates in this state and requires certain disclosures regarding insurance coverage and limits of liability.

    • Payment of Health Care Services through Automated Clearing House Network - adds Section 27-1-17.1.
      Senate Bill 291, sponsored by Sen. Quinton Ross
      Act 2016-320 - effective May 10, 2016
      Requires health care contracts issued, amended or renewed on and after January 1, 2017, between a health insurers and a covered health care provider to include specific language stating that a provider’s request for payment using a transfer of electronic funds through the automated clearing house network be honored; and to allow use of alternate electronic funds transfer methods.

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