Personal Property By-Peril Rating Requirements (Bulletin 2016-05)
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Governs filing, approval, actuarial support, and disclosure of separate per-peril premiums for homeowner, renters/tenants, condominium unit-owner, and dwelling fire/extended coverage policies for insurers licensed in Alabama.
No material clinical or coverage changes in this revision.
Filing, Approval, and Disclosure Requirements
Filing and disclosure criteria
Requirements and timelines
ALL of the following
Settlement payment schedule
- First three months following the effective date (January–March): $100 per policy issued or renewed in violation.
- Next three months (April–June): $150 per policy issued or renewed in violation.
- Next three months (July–September): $200 per policy issued or renewed in violation.
- Next three months (October–December): $250 per policy issued or renewed in violation.
Administrative Codes and Deadlines
| No procedure or billing codes specified in this administrative bulletin. |
Required Filings, Disclosures, and Compliance Actions
Filing requirement: submit by-peril rate filings with actuarial support by deadline
File rate filings with actuarial support that comply with Rule 482-1-152-.06 for affected policy types by the stated deadlines: homeowner, renters/tenants, and condominium (unit owners) filings to be effective on or after Jan 1, 2018 must be filed on or before Jun 1, 2017; dwelling fire and extended coverage filings to be effective on or after Jan 1, 2019 must be filed on or before Jun 1, 2018.
- Homeowner/renters/condominium filings effective on or after Jan 1, 2018 → file by Jun 1, 2017.
- Dwelling fire/extended coverage filings effective on or after Jan 1, 2019 → file by Jun 1, 2018.
Disclosure requirement: show separate per‑peril premiums on policy documents
Disclose separate premiums by peril on the declaration page, billing statement, or policy checklist for the specified policy types and effective dates: new homeowner/renters/condominium policies effective on or after Jan 1, 2018 and existing homeowner policies at renewal on or after Jan 1, 2018; new dwelling fire/extended coverage policies effective on or after Jan 1, 2019 and existing dwelling fire/extended coverage policies at renewal on or after Jan 1, 2019.
- New homeowner/renters/condominium policies with effective date on or after Jan 1, 2018: disclose by-peril premiums.
- Existing homeowner policies renewed on or after Jan 1, 2018: disclose by-peril premiums at renewal.
- New dwelling fire/extended coverage policies with effective date on or after Jan 1, 2019 and renewals on or after Jan 1, 2019: disclose by-peril premiums.
Enforcement and remedy: show‑cause orders, escalating per‑policy settlement payments, or suspension
Failure to make the required disclosures by the deadlines may be deemed a willful violation of the rating laws and may lead to an order to show cause, potential suspension of the insurer’s certificate of authority, or negotiated per‑policy settlement payments escalating by quarter; insurers may petition for reduction or waiver if payments would cause serious financial distress.
- Order to show cause and potential suspension of certificate of authority for willful violation.
- Settlement payments if resolved by consent order: $100 per violating policy (Jan–Mar), $150 (Apr–Jun), $200 (Jul–Sep), $250 (Oct–Dec).
- Insurer may petition the commissioner for reduction or waiver of settlement payment for serious financial distress.
Scope and Key Terms
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