Revised Bulletin 2025-08 — Prohibition on cancellations, non-renewals, and premium increases based solely on certain catastrophe-related claims
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This bulletin governs admitted property and casualty insurers in Alabama, prohibiting specified adverse policy actions based solely on claims arising from catastrophes, natural disasters, weather-related causes, or losses from events not affecting the policy's line of business.
Prohibited policy actions include losses arising from an event not affecting the line of business in which the affected policy was issued.
Certain dates from the December 15, 2025 issuance were changed in response to insurer feedback regarding issuance and requirements of the prior Bulletin 2025-08.
Effective January 1, 2026, insurers shall not cancel or non-renew a policy solely based on a claim arising from a catastrophe, natural disaster, acts of nature, weather-related causes, or a loss from an event not affecting the policy's line of business.
For new policies written on or after March 15, 2026, and renewals on or after May 15, 2026, insurers shall not apply premium surcharges or move coverage to a higher-rating tier (including affiliated insurers) if based solely on such catastrophe-related claims.
By February 15, 2026, insurers with non-compliant rating rules must file an amendment to their rating manual through SERFF and provide a complete updated manual.
Insurer Actions and Exceptions
Insurer actions and exceptions
Prohibited and permitted insurer actions when a policyholder has a covered claim as defined by the bulletin.
ALL of the following
ONE OF
- Apply a premium surcharge to the policy.
- Offer to place the coverage in another rating tier with the same insurer or place the coverage through an affiliated insurer if either action would result in a higher premium.
ALL of the following
EXCEPTIONS - ONE OF
- An insurer may cancel or non-renew despite the above prohibitions if there are additional substantial reasons such as concealment, misrepresentation, or fraud by the insured relating to the policy (whether before or after the claim).
- An insurer may remove or discontinue a claims-free discount after a claim arising from a catastrophe, natural disaster, acts of nature, or weather-related causes; however, it remains prohibited to remove or discontinue a claims-free discount based solely on a loss arising from an event not affecting the policy's line of business.
ALL of the following
- By February 15, 2026, each insurer with rating rules not complying with this Bulletin must file an amendment to its rating manual through SERFF and provide a complete updated manual in the filing.
Prohibited Actions and Filing Requirements for Insurers
Prohibition on cancellations, surcharges, and retiering based solely on specified catastrophe‑related claims
Insurers shall not cancel or non-renew a policy, apply premium surcharges, or move coverage to a higher‑rating tier based solely on a claim arising from a catastrophe, natural disaster, acts of nature, weather‑related causes, or a loss from an event not affecting the line of business in which the policy is placed. This prohibition is effective January 1, 2026 for cancellations/nonrenewals and for new policies written on or after March 15, 2026 and renewals on or after May 15, 2026 for premium surcharges and retiering.
- Effective Jan 1, 2026: insurers shall not cancel or non‑renew a policy solely based on the specified catastrophe‑related claims. [[DO NOT DISPLAY]]
- Effective Mar 15, 2026 (new policies) and May 15, 2026 (renewals): insurers shall not apply premium surcharges or move coverage to a higher‑rating tier (including affiliated insurers) if based solely on the specified claims. [[DO NOT DISPLAY]]
- Exceptions: cancellation/nonrenewal remains permitted when there are additional substantial reasons such as concealment, misrepresentation, or fraud related to the policy. [[DO NOT DISPLAY]]
- Insurers may remove or discontinue a claims‑free discount after a catastrophe‑related claim, but may not remove such a discount based solely on a loss arising from an event not affecting the policy's line of business. [[DO NOT DISPLAY]]
Rating manual amendment filing via SERFF by Feb 15, 2026
Insurers with rating rules that do not comply with this Bulletin must file an amendment to their rating manual through SERFF and provide a complete updated manual by February 15, 2026.
- Filing channel: submit the rating manual amendment through SERFF.
- Deadline: February 15, 2026.
Covered Claim Types (per bulletin)
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