Code of Alabama - Title 27: Insurance - Chapter 13 - Rates and Rating Organizations

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Article 1 General Provisions.

Section 27-13-1 Purpose of chapter; construction thereof
The purpose of this chapter is to promote the public welfare by regulating insurance rates to the end that they shall not be excessive, ...
Section 27-13-2 Administration of laws relating to rates and rating systems
The commissioner is charged with the duty of the administration of all laws now relating, or hereafter relating, to insurance rates and rating systems ...
Section 27-13-3 Filing of data or information by insurers
The commissioner shall have authority to require any insurer engaged in any of the businesses in Alabama as enumerated in this article to file ...
Section 27-13-4 Rules and regulations
The commissioner shall, from time to time, promulgate such rules and regulations as he may deem necessary to carry out the provisions of this ...
Section 27-13-5 Disposition of licenses collected from rating organizations
Any licenses collected from any rating organization by the commissioner shall be paid into the Treasury of the State of Alabama. ...
Section 27-13-6 Short title
This chapter may be referred to as "The Rating Law." ...

Article 2 Fire, etc., and Inland Marine Insurance.

Section 27-13-20 Definitions
For the purposes of this article, unless otherwise stated, the following terms shall have the meanings respectively ascribed to them by this section. (1) ...
Section 27-13-21 Applicability of article - Generally
The provisions of this article shall apply to insurance against loss to property located in this state, or to any valuable interest therein, by ...
Section 27-13-22 Applicability of article - Inland marine insurance
The provisions of this section shall apply to all insurance which is now or hereafter defined by statute, by ruling of the commissioner or ...
Section 27-13-23 Applicability of article - Exemptions
Nothing in this article shall apply to any town or county farmers' mutual fire insurance association restricting their operations to not more than one ...
Section 27-13-24 Rating organizations - License; application therefor; renewal thereof; fee for same
(a) No rating organization shall do business in this state unless it shall have been licensed to do so by the commissioner. Application for ...
Section 27-13-25 Rating organizations - Provisions for insurers to become members or subscribers
Every rating organization shall make reasonable provision in its bylaws, rules, constitution or otherwise to permit any insurer engaged in the kind of insurance ...
Section 27-13-26 Rating organizations - Withdrawal, expulsion, and readmission of members or subscribers
Every rating organization shall notify the department within 10 days upon the withdrawal or expulsion therefrom of any member or subscriber. Should a rating ...
Section 27-13-27 Rate-making and making rating systems
Every rating organization and every insurer which makes its own rates shall make rates that are not unreasonably high or inadequate for the safety ...
Section 27-13-28 Annual statistical reports of insurers
Every insurer shall file annually, on or before July 1, with the rating organization of which it is a member or subscriber, or with ...
Section 27-13-29 Filing of rating systems with department by insurers - Requirement
Beginning 180 days after January 1, 1972, every insurer shall, before using or applying any rate to any kind of insurance coming within the ...
Section 27-13-30 Filing of rating systems with department by insurers - Examination and approval or disapproval by commissioner
If, after examination thereof, the commissioner shall find that such rating systems filed by, or on behalf of, an insurer provide for, result in ...
Section 27-13-31 Survey of risks rated upon schedule
Every rating organization, and every insurer which does its own rate-making, shall keep in its office a written survey of every risk rated upon ...
Section 27-13-32 Hearings on applications to reduce rates
Every rating organization, and every insurer which does its own rate-making, shall provide reasonable means within this state, to be approved by the department, ...
Section 27-13-33 Applications for uniform percentage increase or decrease of rates by insurers
Any insurer may apply to the commissioner for permission to effect a uniform percentage increase or decrease in the rates applied to all risks ...
Section 27-13-34 Approval of rates and forms for insuring special types or classes of risks
Any insurer, individually or as a member of a pool, group, or association, engaged in the business of insuring special types or classes of ...
Section 27-13-35 Factors to be considered by commissioner in determining reasonableness, etc., of rates
In every case where, pursuant to the provisions of this article, the commissioner is authorized or required to determine whether rates are reasonable and ...
Section 27-13-36 Examination of business, etc., of rating organizations and insurers making own rates
The commissioner may, whenever he deems it expedient, but at least once in every five years, make, or cause to be made, an examination ...
Section 27-13-37 Alteration, supplementation and amendment of rating systems
A rating organization, or any insurer making its own rates, may, with the approval of the commissioner, from time to time, alter, supplement or ...
Section 27-13-38 Prohibition against premiums not in accord with approved rating systems
No insurer, or employee thereof, and no broker or agent shall knowingly charge, demand or receive a premium for any policy of insurance except ...
Section 27-13-39 False or misleading information concerning rates
No insurer, and no officer, agent or employee thereof, shall give false or misleading information to any rating organization of which it is a ...
Section 27-13-40 Suspension of license or certificate of authority
Any rating organization which violates any provisions of this article shall be subject to suspension of its license, and any insurer making its own ...
Section 27-13-41 Order revoking or suspending licenses
If the commissioner shall find, after due notice and hearing, that any rating organization, insurer, officer, agent or representative thereof has willfully violated any ...
Section 27-13-42 Notices, hearings, and orders by commissioner
The commissioner shall not make any order under the provisions of this article without giving every rating organization and insurer who may be affected ...
Section 27-13-43 Review of final orders of commissioner
Any final order made by the commissioner as provided by law may, upon appropriate petition filed by the Attorney General on behalf of the ...
Section 27-13-44 Delegation of authority by commissioner
Whenever, under the provisions of this article, the commissioner is authorized or required to do any act, he may designate an assistant, or any ...
Section 27-13-45 Penalty for violation of article
Any rating organization, any insurer, officer, agent, or representative thereof failing to comply with, or otherwise willfully violating, any of the provisions of this ...

Article 3 Casualty and Surety Insurance.

Section 27-13-60 Definitions
For the purposes of this article, unless otherwise stated, the following terms shall have the meanings respectively ascribed to them by this section: (1) ...
Section 27-13-61 Applicability of article
The provisions of this article shall apply to all lines of casualty insurance, including workmen's compensation, employer's liability, fidelity, surety, and guaranty bonds, and ...
Section 27-13-62 Rating organizations - License; application therefor; renewal thereof; fee for same
No rating organization shall do business in this state until it shall have been licensed to do so by the commissioner. Application for such ...
Section 27-13-63 Rating organizations - Provisions for insurers to become members or subscribers
Every rating organization shall make reasonable provision in its bylaws, rules, constitution or otherwise to permit any insurer engaged in the kind of insurance ...
Section 27-13-64 Rating organizations - Admission, withdrawal, expulsion or readmission of members or subscribers
Every rating organization shall notify the department within 10 days upon the admission, withdrawal or expulsion therefrom of any member or subscriber. Should a ...
Section 27-13-65 Rate-making and making rating plans
Every rating organization and every insurer which makes its own rates shall make rates that are not unreasonably high or inadequate for the safety ...
Section 27-13-66 Annual statistical reports of insurers; exchange of information; rules and regulations
Every insurer shall file annually on, or before, July 1, with the rating organization of which it is a member or subscriber, or with ...
Section 27-13-67 Filing of rating plans with department by insurers - Requirement
Beginning 180 days after January 1, 1972, every insurer shall, before using or applying any rate to any kind of insurance coming within the ...
Section 27-13-68 Filing of rating plans with department by insurers - Examination and approval or disapproval by commissioner
If, after examination thereof, the commissioner shall find that such rating plans filed by, or on behalf of, an insurer provide for, result in ...
Section 27-13-69 Appeals from decisions of rating organizations
Any member of, or subscriber to, a rating organization may appeal to the commissioner from the decision of such rating organization in approving or ...
Section 27-13-70 Furnishing information as to rates
Every rating organization and every insurer which makes its own rates shall, after receiving written request therefor from the department, furnish to any person ...
Section 27-13-71 Hearings on applications to reduce rates
Every rating organization and every insurer which does its own rate-making shall provide reasonable means within this state, to be approved by the department, ...
Section 27-13-72 Application for uniform percentage increase or decrease in rates by insurers
(a) Any insurer may apply to the commissioner for permission to effect a uniform percentage increase or decrease in the rates applied to all ...
Section 27-13-73 Factors to be considered in determining reasonableness, etc., of rates
In every case where, pursuant to the provisions of the article, the commissioner is authorized or required to determine whether rates are reasonable and ...
Section 27-13-74 Examination of business, etc., of rating organizations and insurers making own rates
The commissioner may, whenever he deems it expedient, but at least once in every five years, make, or cause to be made, an examination ...
Section 27-13-75 Alteration, supplementation and amendment of rating plans
A rating organization or any insurer making its own rates may, with the approval of the commissioner, from time to time, alter, supplement, or ...
Section 27-13-76 Prohibition against premiums not in accord with approved rating systems
No insurer, or employee thereof, and no broker or agent shall knowingly charge, demand or receive a premium for any policy of insurance except ...
Section 27-13-77 False or misleading information concerning rates
No insurer and no officer, agent or employee thereof shall give false or misleading information to any rating organization of which it is a ...
Section 27-13-78 Suspension of license or certificate of authority
Any rating organization which violates any provision of this article shall be subject to suspension of its license, and any insurer making its own ...
Section 27-13-79 Order revoking or suspending license
If the commissioner shall find, after due notice and hearing, that any rating organization, insurer, officer, agent, or representative thereof has willfully violated any ...
Section 27-13-80 Notices, hearings and orders by commissioner
The commissioner shall not make any order under the provisions of this article without giving every rating organization and insurer who may be affected ...
Section 27-13-81 Review of final orders of commissioner
Any final order made by the commissioner as provided by law may, upon appropriate petition filed by the Attorney General on behalf of the ...
Section 27-13-82 Delegation of authority by commissioner
Whenever, under the provisions of this article, the commissioner is authorized or required to do any act, he may designate an assistant or any ...
Section 27-13-83 Penalty for violation of article
Any rating organization, and any insurer, officer, agent, or representative thereof, failing to comply with, or otherwise willfully violating, any of the provisions of ...

Article 4 Insurance Advisory Organizations.

Section 27-13-100 "Advisory organization" defined
"Advisory organization" means every group, association or other organization of insurers, whether located within or without this state, which assists insurers which make their ...
Section 27-13-101 Compliance with article and rules, etc., of commissioner
Every advisory organization assisting any rating organization or any insurer whose rates are subject to regulation under Article 2 of this chapter or any ...
Section 27-13-102 Filing with commissioner; orders by commissioner against unfair practices, etc., or violations
(a) Every advisory organization shall file with the commissioner: (1) A copy of its constitution, its articles of agreement or association or its certificate ...
Section 27-13-103 Advisory organizations deemed subject to examination
(a) Every advisory organization rendering assistance to a rating organization or to an insurer whose rates are subject to regulation under Article 2 of ...
Section 27-13-104 Enforcement and administration of article
The commissioner is authorized, and directed, to enforce this article, and he is hereby authorized to make such orders, rules, and regulations as are ...
Section 27-13-105 Construction of article
The provisions of this article are supplemental and shall be construed in pari materia with other laws relating to insurance rates and rate-making. ...

Article 5 Auto Liability Insurance Rate Reduction for Persons 55 and Older Taking Approved Accident Prevention Course.

Section 27-13-120 Premium reduction for completing accident prevention course
(a) Any rates, rating schedules, or rating manuals submitted to or filed with the Commissioner of the Department of Insurance for private passenger automobile ...
Section 27-13-121 Approved programs
To qualify for the insurance premium reduction described in Section 27-13-120, the motor vehicle accident prevention course shall be sponsored by the National Safety ...
Section 27-13-122 Applicability
The provisions of this article shall not apply to individuals 55 years of age or older that are already receiving a rate reduction, based ...

Last modified: February 19, 2012

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Code of Alabama - Title 27: Insurance - Chapter 13 - Rates and Rating Organizations