Title 27 — Title 27

The State Health Officer and the commissioner, in carrying out their obligations under this chapter, may contract with qualified persons to make recommendations concerning the determinations required to be made by them. Such recommendations may be accepted in full or in part by t…

Organization. No person may make a tender for or a request or invitation for tenders of, or enter into an agreement to exchange securities for or acquire in the open market or otherwise, any voting security of a health maintenance organization or enter into any other agreement if…

Health maintenance organizations doing business in this state shall be subject to and pay the annual premium tax to be paid by health insurers on health insurance premiums. The same taxes and filing requirements applicable to health insurers under this title, shall apply to and s…

(a) Notwithstanding any other provision of this chapter, any health maintenance organization licensed by the State Board of Health and in operation on May 29, 1986, shall be granted a certificate of authority upon payment of the application fee prescribed in Section 27-21A-21 and…

(a)(1) Upon receipt of an application for issuance of a certificate of authority, the commissioner shall forthwith transmit copies of such application and accompanying documents to the State Health Officer. (2) The State Health Officer shall determine whether the applicant for a …

(a) A health maintenance organization is entitled to coordinate benefits on the same basis as an insurer. No such coordination shall be allowed against policies covering individuals on other than a group basis. (b) A health maintenance organization providing medical benefits or p…

There shall be established a three member HMO advisory council to advise and consult with the commissioner and the State Health Officer in carrying out their duties under this chapter. The members of such advisory body shall be appointed annually by the Alabama Association of Hea…

(a) The state government, or any agency, board, commission, institution, or political subdivision thereof, and any city or county, or board of education, which offers its employees a health benefits plan may make available to and inform its employees or members of the option to e…

(a) The powers of a health maintenance organization include, but are not limited to the following: (1) The purchase, lease, construction, renovation, operation, or maintenance of hospitals, medical facilities, or both, and their ancillary equipment; (2) The making of loans other …

The governing body of any health maintenance organization may include providers, or other individuals, or both. History: (Acts 1986, No. 86-471, p. 854, §5.)

Partners. (a) Any director, officer, employee, or partner of a health maintenance organization who receives, collects, disburses, or invests funds in connection with the activities of such organization shall be responsible for such funds in a fiduciary relationship to the organiz…

(a)(1) Every enrollee residing in this state is entitled to an evidence of coverage. If the enrollee obtains such coverage through an insurance policy or a contract issued by a health care service plan, the insurer or the health care service plan shall issue the evidence of cover…

Every health maintenance organization shall annually, on or before the first day of March, file a report verified by at least two principal officers with the commissioner, with a copy to the State Health Officer, covering the preceding calendar year. Such report shall be on forms…

Every health maintenance organization shall provide promptly to its enrollees notice of any material change in the operation of the organization that will affect them directly. History: (Acts 1986, No. 86-471, p. 854, §9.)

This chapter shall be known as the “Medical Support Health Care Access Act.” History: (Acts 1994, No. 94-710, p. 1377, §1.)

(a) In any case in which a noncustodial parent is required by a court or administrative order to provide health care coverage for such child and the employer of the noncustodial parent is known to the Department of Human Resources, the department shall use the federally required …

As used in this chapter, the following terms shall have the following meanings: (1) AGENCY. Any state agency responsible for administering programs under Title IV-D or Title XIX of the Social Security Act. (2) INSURER. A health insurer, including a group health plan as defined in…

The Alabama Medicaid Agency is authorized and empowered to conduct investigations to determine whether a medical support order exists or eligibility for enrollment of a recipient in a parent’s family health coverage exists. The parents of any child who is a recipient shall cooper…

An insurer shall not deny enrollment of a child under the health coverage of the child’s parent on any of the following grounds: (1) That the child was born out of wedlock. (2) That the child is not claimed as a dependent on the parent’s federal income tax return. (3) That the ch…

When a parent is required by a court or administrative order to provide health coverage and the parent is eligible for family health coverage through an insurer, all of the following shall apply: (1) The parent shall be able to enroll a child in family coverage without regard to …

When a parent is required by a court or administrative order to provide health coverage and the parent is eligible for family health coverage through an employer doing business in the state, all of the following shall apply: (1) The parent shall be able to enroll any child in fam…

An insurer shall not impose any additional requirements on any state agency which has been assigned the rights of an individual eligible for medical assistance under this chapter and covered for health benefits from the insurer that are different from requirements applicable to a…

When a child has health coverage through the insurer of a noncustodial parent, the insurer shall do all of the following: (1) Provide necessary information to the custodial parent in order for the child to obtain benefits through the coverage. (2) Allow the custodial parent or th…

(a) The Alabama Medicaid Agency may garnish the wages, salary, or other employment income of any person who is required by a court or administrative order to provide coverage of the costs of health services to a child who is eligible for medical assistance and has received paymen…

As to every insurance contract insuring any dwelling or other building and written in the name of less than all of the joint owners or tenants in common, with or without survivorship, if such joint tenants or tenants in common are husband and wife, it shall not be a defense again…

(a) Industrial fire insurance policies are policies issued by insurers writing fire and allied lines of insurance through agents operating on the debit agency system under which system a weekly or monthly collection percentage is paid based either on actual weekly or monthly prem…

This article shall be known and may be cited as the Property Insurance Clarity Act. History: (Act 2012-373, p. 932, §1.)

Insurance. (a) Each insurance company authorized to transact homeowners insurance business in the State of Alabama shall annually submit to the department for homeowners insurance policies, computations of the total amount of direct incurred losses, the number of policies in forc…

The department shall also post on the department website a general description of the rate-making methodology that the department allows insurance companies to use in establishing their homeowners rates. History: (Act 2012-373, p. 932, §3.)

Commencing on October 1, 2013, each insurance company authorized to transact homeowners insurance business in this state shall provide the information required pursuant to subsection (a) of Section 27-22-21, commencing with the calendar year 2007. Voluntary submissions of the inf…

(a) Upon written request of an insurance company, the commissioner may waive, modify, or extend for an additional time period, for good cause shown, the reporting requirements imposed by this article. The request shall demonstrate good cause for waiving, modifying, or extending t…

Any information reported to the department by an insurer pursuant to this article is considered a commercially valuable trade secret as defined in Section 8-27-2, and shall be confidential. However, once the information from all of the insurers is aggregated, then the department …

(a) The purpose of this article is to set forth the rights Alabama homeowners have with respect to their insurance policies and with insurance companies. (b) It is the intent of this article to improve homeowners understanding of their policies and to better enable a policyholder…

(a) This article shall apply to all insurance companies authorized under a certificate of authority for property insurance and writing homeowners and other personal lines residential property insurance policies in the State of Alabama. (b) For purposes of this article, the term “…

The following shall serve as the minimum standards to be followed by the Alabama Department of Insurance in exercising the department’s powers and duties in regulating insurance companies pursuant to Chapter 12. The Department of Insurance and insurance companies shall post this …

(a) No homeowners personal lines residential property coverage insurance policy shall be delivered or issued for delivery in this state unless an appropriate outline of coverage and comprehensive policy checklist have been delivered to the policyholder prior to issuance, within 3…

Any violation of this article or any provision therein shall be enforceable only by the Department of Insurance as provided herein. Nothing in this article shall be used to provide a basis for a private cause of action. This article does not operate to expand coverage beyond the …

The failure of an insurance company writing homeowners personal lines residential property coverage insurance policies in this state to comply with the material provisions of this article shall be a violation of the Unfair Trade Practices Act as set forth in Section 27-12-1 et se…

As used in this article, the following terms shall have the following meanings: (1) LENDER. A person who holds a mortgage, lien, deed of trust, or other security interest in property. The term includes an assignee, receiver, or other transferee of the interest. (2) RESIDENTIAL RE…

(a) If a claim under an insurance policy for damage to residential real property is paid to the insured and a lender, and the lender holds all or part of the proceeds from the insurance claim payment pending completion of all or part of the repairs to the property, the lender sha…

Not later than 10 days after the date a lender receives from the insured a request for release of all or part of the insurance proceeds held by the lender, the lender shall do either of the following: (1) If the lender has received sufficient evidence of the insured’s compliance …

A lender who fails to provide notice as required by Section 27-22-61 or Section 27- 22-62 or to release insurance proceeds as required by Section 27-22-62 shall pay to the insured interest at the rate of 10 percent per year on the proceeds held by the lender. History: (Act 2019-4…

(a) If a lender fails to provide notice as required by Section 27-22-61 or Section 27- 22-62, interest begins to accrue on the date the lender received the insurance proceeds. (b) If a lender fails to release insurance proceeds as required by Section 27-22-62, interest begins to …

Nothing in this article shall impact any rights of a lender, whether provided by law or by an agreement with a borrower or mortgagor. History: (Act 2019-460, §6.)

For purposes of this chapter, the following terms have the following meanings: (1) COMMISSIONER. The Alabama Commissioner of Insurance. (2) CUSTOMER. A person who purchases portable electronics or services. (3) DEPARTMENT. The Alabama Department of Insurance. (4) ENROLLED CUSTOME…

(a) A vendor is required to hold a limited lines insurance producer license to sell or offer coverage under a policy of portable electronics insurance. (b) A limited lines insurance producer license issued in accordance with this chapter shall authorize any employee or authorized…

(a) At every location where portable electronics insurance is offered to customers, brochures or other written materials must be made available to a prospective customer which: (1) Disclose that portable electronics insurance may provide a duplication of coverage already provided…

(a) The employees and authorized representatives of vendors may sell or offer portable electronics insurance to customers and shall not be subject to licensure as an insurance producer under this chapter provided that: (1) The vendor obtains a limited lines license to authorize i…

If a vendor of portable electronics or its employees or authorized representative violates any provision of this section, the commissioner, after opportunity for hearing, which hearing may be waived, may do any of the following: (1) Impose fines not to exceed five hundred dollars…

Notwithstanding any other provision of law: (1) An insurer may terminate or otherwise change the terms and conditions of a policy of portable electronics insurance only upon providing the policyholder and enrolled customers with at least 30 days’ notice. (2) If the insurer change…