Alabama Administrative Code

This chapter shall become effective January 1, 2004, 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. 482-1-130-.09 New Rule: December 1, 2003; …

This rule is adopted and promulgated by the commissioner of insurance pursuant to Sections 27-2-17 and 27-12-1, et seq., Code of Ala. 1975. This chapter will rescind and supersede Departmental Regulation No. 64 dated April 1, 1981. Author: Commissioner of Insurance Notes Ala. Adm…

(1) The purpose of this chapter is to require insurers to deliver to purchasers of life insurance information that will improve the buyer's ability to select the most appropriate plan of life insurance for the buyer's needs and improve the buyer's understanding of the basic featu…

(1) Except for the exemptions specified in Rule 482-1-131-.03(2), this chapter shall apply to any solicitation, negotiation or procurement of life insurance occurring within this state. Rule 482-1-131-.05(2) shall apply only to an existing nonexempt policy held by a policyowner r…

For the purposes of this chapter, the following definitions shall apply: (a) Buyer's Guide. The current Life Insurance Buyer's Guide adopted by the National Association of Insurance Commissioners (NAIC) or language approved by the commissioner. (b) Current Scale of Nonguaranteed …

(1) Requirements Applicable Generally (a) The insurer shall provide a Buyer's Guide to all prospective purchasers, prior to accepting the applicant's initial premium or premium deposit. However, if the policy for which application is made contains an unconditional refund provisio…

The following information shall be adequately disclosed at the time an application is made, prior to accepting the applicant's initial premium or deposit; for a preneed funeral contract or prearrangement that is funded or to be funded by a life insurance policy: (a) The fact that…

(1) Each insurer shall maintain, at its home office or principal office, a complete file containing one copy of each document authorized and used by the insurer pursuant to this chapter. The file shall contain one copy of each authorized form for a period of three (3) years follo…

Failure of an insurer to provide or deliver a Buyer's Guide, an in force illustration, a policy summary or policy data as provided in Rule 482-1-131-.05 shall constitute an omission that misrepresents the benefits, advantages, conditions or terms of an insurance policy. Author: C…

If any provisions of this chapter be held invalid, the remainder shall not be affected. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-131-.09 New Rule: Filed May 25, 2004; effective January 1, 2005. Filed with LRS June 3, 2004. Rule is not subject to the Alaba…

This rule shall become effective January 1, 2005, 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. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-131-…

This chapter is adopted and promulgated by the Commissioner of Insurance pursuant to the authority set forth in Section 27-2-17, Code of Ala. 1975. This chapter will rescind and supersede Departmental Regulation No. 69 dated August 15, 1992. Author: Commissioner of Insurance Note…

The purpose of this chapter is to set forth minimum standards and guidelines to assure a full and truthful disclosure to the public of all material and relevant information in the advertising of life insurance policies and annuity contracts. Author: Commissioner of Insurance Note…

For the purpose of this chapter: (a) 1. Advertisement. Material designed to create public interest in life insurance or annuities or in an insurer, or in an insurance producer; or to induce the public to purchase, increase, modify, reinstate, borrow on, surrender, replace or reta…

(1) This chapter shall apply to any life insurance or annuity advertisement intended for dissemination in this state. In variable contracts where disclosure requirements are established pursuant to federal regulation, this chapter shall be interpreted so as to eliminate conflict …

(1) Advertisements shall be truthful and not misleading in fact or by implication. The form and content of an advertisement of a policy shall be sufficiently complete and clear so as to avoid deception. It shall not have the capacity or tendency to mislead or deceive. Whether an …

(1) The information required to be disclosed by this chapter shall not be minimized, rendered obscure, or presented in an ambiguous fashion or intermingled with the text of the advertisement so as to be confusing or misleading. (2) An advertisement shall not omit material informa…

(1) The name of the insurer shall be clearly identified in all advertisements about the insurer or its products, and if any specific individual policy is advertised it shall be identified either by form number or other appropriate description. If an application is a part of the a…

(1) An advertisement that is intended to be seen or heard beyond the limits of the jurisdiction in which the insurer is licensed shall not imply licensing beyond those limits. (2) An advertisement may state that an insurer or insurance producer is licensed in a particular state o…

An advertisement shall not contain statements, pictures or illustrations that are false or misleading, in fact or by implication, with respect to the assets, liabilities, insurance in force, corporate structure, financial condition, age or relative position of the insurer in the …

(1) Each insurer shall maintain at its home or principal office a complete file containing a specimen copy of every printed, published or prepared advertisement of its individual policies and specimen copies of typical printed, published or prepared advertisements of its blanket,…

An insurer or its officer, directors, producers or employees that violate any of the provisions of this chapter, or knowingly participate in or abet such violation, shall be subject to a fine up to $1000 for each violation and suspension or revocation of its certificate of author…

It is not intended that this chapter conflict with or supersede any regulations currently in force or subsequently adopted in this state governing specific aspects of the sale or replacement of life insurance including, but not limited to, laws or regulations dealing with life in…

If any section, term or provision of this chapter shall be judged invalid for any reason, that judgment shall not affect, impair or invalidate any other section, term or provision of this chapter, and the remaining sections, terms and provisions shall be and remain in full force …

This chapter shall become effective on January 1, 2005, 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. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-…

This chapter is made and promulgated by the Commissioner of Insurance pursuant to the authority set forth in Section 27-2-17, Code of Ala. 1975. This chapter will rescind and supersede Departmental Regulation No. 70 dated April 1, 1981. Author: Commissioner of Insurance Notes Ala…

(1) The purpose of this chapter is: (a) To regulate the activities of insurers and producers with respect to the replacement of existing life insurance and annuities. (b) To protect the interests of life insurance and annuity purchasers by establishing minimum standards of conduc…

(1) DIRECT-RESPONSE SOLICITATION. A solicitation through a sponsoring or endorsing entity or individually solely through mails, telephone, the Internet or other mass communication media. (2) EXISTING INSURER. The insurance company whose policy or contract is or will be changed or…

(1) A producer who initiates an application shall submit to the insurer, with or as part of the application, a statement signed by both the applicant and the producer as to whether the applicant owns existing, in-force policies or contracts on the same insured or annuitant. If th…

Each insurer shall: (a) Maintain a system of supervision and control to insure compliance with the requirements of this chapter that shall include at least the following: 1. Inform its producers of the requirements of this chapter and incorporate the requirements of this chapter …

(1) Where a replacement is involved in the transaction, the replacing insurer shall: (a) Verify that the required forms are received and are in compliance with this chapter; (b) Notify any other existing insurer that may be affected by the proposed replacement within five (5) bus…

(1) Where a replacement is involved in the transaction, the existing insurer shall: (a) Retain and be able to produce all replacement notifications received, indexed by replacing insurer, for at least five (5) years or until the conclusion of the next regular examination conducte…

(1) In the case of an application that is initiated as a result of a direct response solicitation, the insurer shall require, with or as part of each completed application for a policy or contract, a statement asking whether the applicant, by applying for the proposed policy or c…

(1) Any failure to comply with this chapter shall be considered a violation of Section 27-12-1 et seq., Code of Ala. 1975. Examples of violations include: (a) Any deceptive or misleading information set forth in sales material; (b) Failing to ask the applicant in completing the a…

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

The provisions of this chapter shall become effective January 1, 2005, 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. Author: Commissioner of Insurance Notes Ala. Admi…

(1) Purpose and Scope. (a) The purpose of this chapter is to implement Chapter 36A of Title 27 of the Alabama Insurance Code, beginning with Section 27-36A-1, Code of Ala. 1975. (b) These standards apply to all individual and group health (accident and sickness) insurance coverag…

(1) General. (a) Claim reserves are required for all incurred but unpaid claims on all health insurance policies. For contracts with an elimination period, the duration of disablement shall be measured as dating from the time that benefits would have begun to accrue had there bee…

(1) General. (a) Except as noted in subparagraph (b), unearned premium reserves are required for all contracts with respect to the period of coverage for which premiums, other than premiums paid in advance, have been paid beyond the date of valuation. (b) Single premium credit di…

(1) General (a) Contract reserves are required, unless otherwise specified in Rule subparagraph (b) for either of the following: 1. All individual and group contracts with which level premiums are used. 2. All individual and group contracts with respect to which, due to the gross…

Increases to, or credits against reserves carried, arising because of reinsurance assumed or reinsurance ceded, must be determined in a manner consistent with these minimum reserve standards and with all applicable provisions of the reinsurance contracts which affect the insurer'…

The provisions of 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. Notes Ala. Admin. Code r. 482-1-134-.06 New Rule: July 14, 2005; e…

This chapter is promulgated by the Commissioner of Insurance pursuant to Section 27-2-17, Code of Ala. 1975. Author: Commissioner of Insurance Notes Ala. Admin. Code r. 482-1-135-.01 New Rule: December 21, 2005; effective December 31, 2005. Filed with LRS December 21, 2005. Rule …

This chapter implements a non- adversarial alternative dispute resolution procedure for a facilitated claim resolution conference prompted by the need for effective, fair, and timely handling of personal lines insurance claims arising out of damages to residential property caused…

The following definitions apply to the terms of this chapter as used herein: (1) CLAIM. Any matter on which there is a dispute or for which the insurer has denied payment due to claim arising out of damages to residential property caused by hurricanes and tropical storms, tornado…

Within sixty (60) days of the time an insurer receives a first-party claim, and provided the claim has not been resolved, the insurer shall mail to the insured a mediation notice of the right to mediate disputed claims. Mediation notification shall be in writing and shall be legi…

If the claim has not been resolved within 21 days from the date of the Mediation Notice as required in Rule 482-1-135-.04, an insured or the insurer may request mediation by calling the Alabama Department of Insurance Consumer Services Division at 334-241-4143; by faxing a reques…

The Department will select a mediator and schedule the mediation conference, both subject to the approval of the parties. The Department will attempt to facilitate reduced travel and expense to the parties and the mediator when selecting a mediator and scheduling the mediation co…

(1) The insurer will produce at the conference a copy of the policy and will bring the entire claims file. The insurer is not required to allow the insured to review or copy the claims file. The representative of the insurer attending the conference must be familiar with and know…

Within 5 days of the conclusion of the conference the mediator shall file with the Department a mediator's status report indicating whether or not the parties reached a settlement. If the parties reached a settlement, the mediator shall include a copy of the settlement agreement …