Ala. Admin. Code r. 482-1-152-.07

Current through Register Vol. 43, No. 1, October 31, 2024

Section 482-1-152-.07 - Requirement For Disclosure Of Separate Premiums By Peril On Declarations Page, Billing Statement, Or Policy Checklist

(1) The requirements of this rule apply to homeowner, renters/tenants, and condominiums (unit owners) policies of new business with an effective date on or after January 1, 2018 and to existing homeowner policies at the time of renewal with a renewal date on or after January 1, 2018.

(2) The requirements of this rule apply to policies of new dwelling fire/extended coverage policies with an effective date on or after January 1, 2019 and to existing dwelling fire/extended coverage policies at the time of renewal with a renewal date on or after January 1, 2019.

(3) Separate premiums for hurricane coverage, all other wind/hail coverage, and all other perils coverage, as well as a total premium for the policy, shall be prominently displayed in one of the following manners:

(1) on the policy declarations page, renewal declarations page, renewal certificate, or on a supplemental declarations page;

(2) on the billing statement or on a supplemental page included with the billing statement;

(3) on the outline of coverage and comprehensive policy checklist (required by the Alabama Home owners Bill of Rights Act, Code of Ala. 1975, §§ 27-22-40 et seq. (2012)) or a supplemental page included with the policy checklist; or

(4) on some other document that will be readily seen by the insured. All insurers must file with the Department for approval a sample of the page providing these separate premiums and an explanation as to where the page will be placed in the document mailings to the insured. Alternative language to describe the three peril groups on the premium document may be proposed in the rate filing.

(4) Premiums/rates for additional coverages, voluntary endorsements, or policy limits changes (other than coverage limits for dwelling or personal property, or changes indeductibles) are not required to be separated by peril. A single premium for all such endorsements combined may be displayed. If an endorsement only applies to one of the three peril groups that are the subject of this regulation, it is recommended that the premium for that endorsement be included in the separate peril group premium.

Ala. Admin. Code r. 482-1-152-.07

New Rule: September 23, 2013; effective October 3, 2013. Filed with LRS September 23, 2013. Rule is not subject to the Alabama Administrative Procedure Act.

Authority: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-13-1 et seq., 27-14-8 through 27-14-11.