Alabama Administrative Code

For purposes of this chapter, the following definitions apply: (a) Customer. A customer of the licensee as the term customer is defined in Rule 482-1-122-.04. (b) Customer information. Nonpublic personal information as defined in Paragraph S. of Rule 482-1-122-.04 about a custome…

Each licensee shall implement a comprehensive written information security program that includes administrative, technical and physical safeguards for the protection of customer information. The administrative, technical and physical safeguards included in the information securit…

A licensee's information security program shall be designed to do all of the following: (a) Ensure the security and confidentiality of customer information. (b) Protect against any anticipated threats or hazards to the security or integrity of the information. (c) Protect against…

The actions and procedures described in Rules 482-1-126-.07 through 482-1-126-.10, inclusive, are examples of methods of implementation of the requirements of Rules 482-1-126-.04 and 482-1-126-.05. These examples are non-exclusive illustrations of actions and procedures that lice…

The licensee: (a) Identifies reasonably foreseeable internal or external threats that could result in unauthorized disclosure, misuse, alteration or destruction of customer information or customer information systems. (b) Assesses the likelihood and potential damage of these thre…

The licensee: (a) Designs its information security program to control the identified risks, commensurate with the sensitivity of the information, as well as the complexity and scope of the licensee's activities. (b) Trains staff, as appropriate, to implement the licensee's inform…

The licensee: (a) Exercises appropriate due diligence in selecting its service providers. (b) Requires its service providers to implement appropriate measures designed to meet the objectives of this regulation, and, where indicated by the licensee's risk assessment, takes appropr…

The licensee monitors, evaluates and adjusts, as appropriate, the information security program in light of any relevant changes in technology, the sensitivity of its customer information, internal or external threats to information, and the licensee's own changing business arrang…

A licensee violating this chapter may be subject to the suspension or revocation of his, her or its license or certificate of authority in accordance with Subsection (e) of Section 27-2-17, Code of Ala.1975. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-126-.1…

This chapter shall become effective upon its approval by the Commissioner of Insurance and upon its having been on file as a public document in the office of the Secretary of State for ten days. Each licensee shall establish and implement an information security program, includin…

The purpose of this chapter is to set forth restrictions and procedural requirements for personal lines insurers licensed in Alabama regarding the use of applicants' credit history for calculating rates and determining eligibility for coverage or tier placement. Author: Commissio…

This chapter is promulgated by the Commissioner of Insurance pursuant to the authority set forth in Section 27-2-17, Code of Ala. 1975. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-127-.02 New Rule: May 21, 2003, effective June 7, 2003. Filed with LRS May 28,…

This chapter shall apply to all personal lines insurers doing business in the State of Alabama. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-127-.03 New Rule: May 21, 2003, effective June 7, 2003. Filed with LRS May 28, 2003. Rule is not subject to the Alabam…

The following definitions shall apply for purposes of this chapter: (a) Adverse Action. As described in Section 1681a (k) of the federal Fair Credit Reporting Act. (b) Affiliate. Any company that controls, is controlled by, or is under common control with another company. (c) App…

(1) Insurers must maintain and make available upon request by the Department specific written procedures detailing their practices regarding credit history and insurance scores, including the following information: (a) When credit history will be ordered and when insurance scores…

(1) Insurers shall not deny personal insurance coverage, calculate an insurance score, determine personal insurance premiums or rates, or place an applicant in a tier based in whole or in part on the following types of credit history: (a) An applicant's number of credit inquiries…

Nothing in this chapter shall be construed to modify, limit, or supersede the operation of the federal Fair Credit Reporting Act (15 U.S.C. §§ 1681, et seq.). Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-127-.07 New Rule: May 21, 2003, effective June 7, 2003.…

(1) Any rejection, refusal to quote or application for insurance extended over the Internet, by telephone, or in person shall comply with the notice requirements of 15 U.S.C. § 1681. (2) For purposes of the notices required by the Fair Credit Reporting Act, 15 U.S.C. § 1681, an a…

Failure to comply with a material provision of this or any regulation is considered a violation of Section 27-2-17, Code of Ala. 1975. Pursuant to Section 27-3-21, violation of said statute may subject the insurer to the suspension or revocation of the insurer's Certificate of Au…

If any section or portion of a section of this chapter or its applicability to any person or circumstance is held invalid by a court, the remainder of the chapter or the applicability of the provision to other persons or circumstances shall not be affected. Author: Commissioner o…

This chapter is prospective and shall be effective upon its approval by the Commissioner of Insurance and upon its having been on file as a public document in the office of the Secretary of State for ten days. In order to provide sufficient time for licensees to establish policie…

This chapter is adopted and promulgated by the Commissioner of Insurance pursuant to Section 27-2-17, Code of Ala. 1975. Notes Ala. Admin. Code r. 482-1-128-.01 New Rule: April 20, 2007; effective May 1, 2007. Filed with LRS April 20, 2007. Rule is not subject to the Alabama Admi…

The purpose of this chapter is to: (a) Establish a uniform order of benefit determination under which plans pay claims. (b) Reduce duplication of benefits by permitting a reduction of the benefits to be paid by plans that, pursuant to rules established by this chapter, do not hav…

As used in this chapter, these words and terms have the following meanings, unless the context clearly indicates otherwise: (a) 1. "Allowable expense," except as set forth below or where a statute requires a different definition, means any health care expense, including coinsuran…

This chapter applies to all plans that are issued or renewed on or after the effective date of this chapter, which is May 1, 2007. Notes Ala. Admin. Code r. 482-1-128-.04 New Rule: April 20, 2007; effective May 1, 2007. Filed with LRS April 20, 2007. Rule is not subject to the Al…

(1) Appendix A contains a model COB provision for use in contracts. The use of this model COB provision is subject to the provisions of Paragraphs (2), (3), and (4) of this rule and to the provisions of Rule 482-1-128-.06. (2) Appendix B is a plain language description of the COB…

When a person is covered by two (2) or more plans, the rules for determining the order of benefit payments are as follows: (a) 1. The primary plan shall pay or provide its benefits as if the secondary plan or plans did not exist. 2. If the primary plan is a closed panel plan and …

In determining the amount to be paid by the secondary plan on a claim, should the plan wish to coordinate benefits, the secondary plan shall calculate the benefits it would have paid on the claim in the absence of other health care coverage and apply that calculated amount to any…

A plan shall, in its explanation of benefits provided to covered persons, include the following language: "If you are covered by more than one health benefit plan, you should file all your claims with each plan." Notes Ala. Admin. Code r. 482-1-128-.08 New Rule: April 20, 2007; e…

(1) A secondary plan that provides benefits in the form of services may recover the reasonable cash value of the services from the primary plan, to the extent that benefits for the services are covered by the primary plan and have not already been paid or provided by the primary …

(1) A contract that provides health care benefits and that was issued before the effective date of this chapter shall be brought into compliance with this chapter by either of the following: (a) The later of: 1. The next anniversary date or renewal date of the contract. 2. Twelve…

This Chapter shall become effective on May 1, 2007 upon its approval by the Commissioner of Insurance and upon its having been on file as a public document in the office of the Secretary of State for ten days. Notes Ala. Admin. Code r. 482-1-128-.11 New Rule: April 20, 2007; effe…

This chapter is issued based upon the authority granted the commissioner under Sections 27-2-17, 27-15-1 et seq., and 27-12-1et seq., Code of Ala. 1975. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-129-.01 New Rule: September 23, 2003; effective October 11, 2…

The purpose of this chapter is to provide standards for the disclosure of certain minimum information about annuity contracts to protect consumers and foster consumer education. The chapter specifies the minimum information which must be disclosed and the method for disclosing it…

This chapter applies to all group and individual annuity contracts and certificates except: (1) Registered or non-registered variable annuities or other registered products; (2) Immediate and deferred annuities that contain no nonguaranteed elements; (3) (a) Annuities used to fun…

(1) The following definitions shall apply in this chapter:(a) BUYERS GUIDE. The National Association of Insurance Commissioner's approved Annuity Buyer's Guide. (b) CONTRACT OWNER. The owner named in the annuity contract or certificate holder in the case of a group annuity contra…

(1) (a) Where the application for an annuity contract is taken in a face-to-face meeting, the applicant shall at or before the time of application be given both the disclosure document described in Subsection (2) and the Buyer's Guide contained in the Appendix. (b) Where the appl…

(1) An insurer or producer may elect to provide a consumer an illustration at any time, provided that the illustration is in compliance with this rule and each of the following: (a) Is clearly labeled as an illustration. (b) Includes a statement referring consumers to the disclos…

In addition to any other penalties provided by the laws of this state, an insurer or producer that violates a requirement of this chapter shall be guilty of a violation of Section 27-12-1 et seq., Code of Ala. 1975. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-…

If any provision of this chapter or its application to any person or circumstance is for any reason held to be invalid by any court of law, the remainder of the chapter and its application to other persons or circumstances shall not be affected. Author: Commissioner of Insurance …

This chapter shall become effective upon its approval by the Commissioner of Insurance and upon its having been on file as a public document in the office of the Secretary of State for ten days and shall apply to contracts sold on or after the effective date. Author: Commissioner…

This chapter shall become effective upon its approval by the Commissioner of Insurance and upon its having been on file as a public document in the office of the Secretary of State for ten days and shall apply to contracts sold on or after the effective date. Notes Ala. Admin. Co…

This chapter is adopted pursuant to Sections 27-2-17, 27-15-70 to 27-15-83, 27-15-28.1, and 27-36A-1 to 27-36A-20, Code of Ala. 1975. Notes Ala. Admin. Code r. 482-1-130-.01 New Rule: December 1, 2003; effective January 1, 2004. Filed with LRS November 15, 2003. Rule is not subje…

The purpose of this chapter is to recognize, permit, and prescribe the use of the 2001 Commissioners Standard Ordinary (CSO) Mortality Table in accordance with Sections 27-15-70 to 27-15-83, 27-15-28.1, and 27-36A-1 to 27-36A-20, Code of Ala. 1975, and Chapter 482-1-120. Notes Al…

For purposes of this chapter, the following definitions apply: (a) 2001 CSO MORTALITY TABLE. The mortality table, consisting of separate rates of mortality for male and female lives, developed by the American Academy of Actuaries CSO Task Force from the Valuation Basic Mortality …

(1) At the election of the company for any one or more specified plans of insurance and subject to the conditions stated in this chapter, the 2001 CSO Mortality Table may be used as the minimum standard for policies issued on or after January 1, 2004, and before the date specifie…

(1) For each plan of insurance with separate rates for smokers and nonsmokers an insurer may use any of the following: (a) Composite mortality tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits. (b) Smok…

(1) The 2001 CSO Mortality Table may be used in applying Chapter 482-1-120 in the following manner, subject to the transition dates for use of the 2001 CSO Mortality Table in Rule 482-1-130-.04. (a) Rule 482-1-120-.03(2)(b): The net level reserve premium is based on the ultimate …

(1) For any ordinary life insurance policy delivered or issued for delivery in this state on and after January 1, 2004, that utilizes the same premium rates and charges for male and female lives or is issued in circumstances where applicable law does not permit distinctions on th…

If any provision of this chapter or its application to any person or circumstance is for any reason held to be invalid, the remainder of the chapter and the application of the provision to other persons or circumstances shall not be affected. Notes Ala. Admin. Code r. 482-1-130-.…