Title 27 — Title 27

This title constitutes the Alabama Insurance Code. History: (Acts 1971, No. 407, p. 707, §1.)

Right to Select Practitioner of Healing Arts. Any contract or policy of insurance or any plan or agreement for health services providing for reimbursement or payment for health services performed by a medical doctor or physician or upon the certification of a medical doctor, surg…

(a) The Legislature finds and declares the following: (1) The citizens of this state rely upon health insurance to cover the cost of obtaining health care and it is essential that the citizens’ expectation that their health care costs will be paid by their insurance policies is n…

Accident Insurance Policies. Whenever the terms “physician” and/or “doctor” are used in any policy of health or accident insurance issued in this state or in any contract for the provision of health care, services, or benefits issued by any health, medical or other service corpor…

Care Reimbursement. Any appropriations made by the Legislature of Alabama to the University of Alabama in Birmingham and to the University of South Alabama shall be for the unrestricted support of the activities of the said university and therefore insurance companies, whether op…

Each willful violation of this title for which a greater penalty is not provided by another provision of this title or by other applicable laws of this state shall, in addition to any applicable prescribed denial, suspension, or revocation of certificate of authority or license, …

Every form of insurance document and every rate or other filing lawfully in use immediately prior to January 1, 1972, may continue to be so used or be effective until the commissioner otherwise prescribes pursuant to this title. History: (Acts 1971, No. 407, p. 707, §809.)

This title shall not impair or affect any act done, offense committed or right accruing, accrued, or acquired or liability, penalty, forfeiture, or punishment incurred prior to January 1, 1972, but the same may be enjoyed, asserted, enforced, prosecuted, or inflicted, as fully, a…

Notwithstanding any other provision of law, when any contract of health insurance or any plan or agreement for health services provides for the reimbursement or payment for services which are within the scope of a podiatrist’s professional license as defined in the general laws o…

Various Claim Forms. (a)(1) The Commissioner of the Department of Insurance shall prescribe a standard health insurance claim form to be used by all hospitals. The forms shall be prescribed in a format which allows for the use of generally accepted diagnosis and treatment coding …

Denials, Adjustments, Etc.; Penalties. (a) Each insurer, health service corporation, and health benefit plan that issues or renews any policy of accident or health insurance providing benefits for medical or hospital expenses for its insured persons shall pay for services rendere…

(a) As used in this section, the following words shall have the following meanings: (1) ACH ELECTRONIC FUNDS TRANSFER. An electronic funds transfer through the Health Insurance Portability and Accountability Act (HIPPA) standard Automated Clearing House network. (2) COVERED HEALT…

Reimbursement for Outpatient and Inpatient Services by Qualified Psychiatrist or Psychologist. (a) Whenever any group, or blanket hospital or medical expense insurance policy or hospital or medical service contract issued for delivery in this state provides for the reimbursement …

(a) The insured, or health or dental plan beneficiary may assign reimbursement for health or dental care services directly to the provider of services. Health benefits include medical, pharmacy, podiatric, chiropractic, optometric, durable medical equipment, and home care service…

or Drugs. (a) For the purposes of this section, the following terms have the following meanings: (1) HEALTH CARE PROVIDER. The term includes: a. A pharmacist licensed pursuant to Chapter 23 of Title 34. b. A physician or other health care professional licensed pursuant to Chapter…

For the purposes of this title, the following terms shall have the meanings respectively ascribed to them by this section. (1) INSURANCE. A contract whereby one undertakes to indemnify another or pay or provide a specified amount or benefit upon determinable contingencies. (2) IN…

(a) This section shall be known and may be cited as the “Patient Right to Know Act.” (b) As used in this section, unless the context clearly indicates otherwise, the following words shall have the following meanings: (1) ENROLLEE. A person who purchases individual health care cov…

(a) For the purposes of this section, the following words shall have the following meanings: (1) ENROLLEE. A person enrolled in a health benefit plan. (2) HEALTH BENEFIT PLAN. Any individual or group plan, policy, or contract for health care services issued, delivered, issued for…

(a) Every health benefit plan that provides coverage for prescription drugs or devices, or administers a plan, including, but not limited to, third party administrators for self-insured plans and state administered plans, excluding the Alabama Medicaid Program, shall issue to its…

(a) A personal auto insurance carrier of a full-time law enforcement officer or firefighter of a municipality or a county or the State of Alabama or a member of a volunteer fire department, volunteer rescue squad, or volunteer emergency medical service shall not consider any moto…

(a) Every insurer authorized to write and engaged in writing, on a direct basis, fire and extended coverage insurance in Alabama shall be and remain a member of the Alabama Insurance Underwriting Association, an unincorporated nonprofit joint underwriting association organized in…

Certain Areas. (a) Insurance carriers providing full property and casualty coverage, to specifically include wind and hail coverage, to property owners within the areas defined in Section 27-1-24, including any portion of the area as it may be expanded from time to time pursuant …

Insurance Coverage to Be Public Information. (a) Except as limited in subsection (c), all rate filings and related actuarial information for homeowners insurance coverage in Alabama filed after September 1, 2011, shall be treated as public information. (b) All rate filings and re…

No provision of this title shall apply with respect to: (1) Domestic mutual aid associations, as identified in Chapter 30, except as stated in Chapter 30; or (2) Fraternal benefit societies, as identified in Chapter 34, except as stated in Chapters 34 and 35. History: (Acts 1971,…

This title shall not apply as to: (1) Any fraternal or other organization or activity which is exempted from the provisions of Chapter 34 under Section 27-34-5, except to the extent provided in such section; (2) Nonprofit corporations for establishment of hospitalization plan und…

No person shall transact a business of insurance in Alabama, or relative to a subject resident, located or to be performed in Alabama, without complying with the applicable provisions of this title. History: (Acts 1971, No. 407, p. 707, §10.)

Provisions of this title relative to a particular kind of insurance, a particular type of insurer, or a particular matter shall prevail over provisions in this title relating to insurance in general, insurers in general, or such matters in general. History: (Acts 1971, No. 407, p…

The scope and meaning of any provision shall not be limited or otherwise affected by the caption or heading of any chapter, section, or provision. History: (Acts 1971, No. 407, p. 707, §14.)

or Deeds of Trust. Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1943, No. 438, p. 403; Acts 1961, Ex. Sess., No. 86, p. 2003.)

Service Men’s Readjustment Act. Repealed by Act 2015-70 effective April 21, 2015. History: (Acts 1945, No. 37, p. 44.)

(a) There shall be a Department of Insurance of the State of Alabama with such subordinate bureaus and divisions as the commissioner determines to be necessary. (b) The expenses of operating the department shall be paid out of funds appropriated to it by the Legislature or otherw…

Compensation and Bond Thereof; Contracting for Professional Services. (a) Subject to the Merit System Act and rules and regulations issued pursuant thereto, the commissioner shall prescribe the qualifications and duties of and appoint, employ, bond, and remove a State Fire Marsha…

The Attorney General shall assign to the department an assistant attorney general who shall render to the commissioner such legal services as may be required. History: (Acts 1951, No. 234, p. 504, §12; Acts 1971, No. 407, p. 707, §23.)

In addition to compensation for their services, the commissioner and deputy commissioners shall receive actual expenses for travel on official business in accordance with Article 2, Chapter 7 of Title 36 of this code. Assistants and employees of the department shall be paid expen…

(a) The commissioner or any deputy, examiner, assistant, or employee of the commissioner shall not be financially interested, directly or indirectly, in any insurer, insurance agency, or insurance transaction except as a policy holder or claimant under a policy; except, that as t…

Destruction. (a) The commissioner shall keep and preserve in permanent form accurate and complete records of his proceedings, including also a concise statement of the result of such examination of insurers by the commissioner, record and file all bonds and contracts and shall fi…

(a) Photographs or microphotographs in the form of film or prints of documents and records made under subsection (c) of Section 27-2-14 shall have the same force and effect as the originals thereof and shall be treated as originals for the purpose of their admissibility in eviden…

(a) The commissioner shall have printed or otherwise published for public distribution all of the following: (1) The insurance laws of this state. (2) The rules and regulations of the commissioner. (3) A directory, annually, of all insurers and of all resident insurance producers…

(a) The commissioner may make reasonable rules and regulations necessary for the effectuation of any provision of this title. No such rule or regulation shall extend, modify, or conflict with any law of this state or the reasonable implications thereof. (b) Any such rule or regul…

The commissioner shall, by regulation, provide for the transition from annual renewal to biennial renewal of licenses for insurance producers, service representatives, and adjusters by staggering the renewal periods in 2007 and 2008. Certain licensees may be required to renew for…

(a) Orders and notices of the commissioner shall be effective only when in writing signed by him or by his authority. (b) Every such order shall state its effective date, and shall concisely state: (1) Its intent or purpose; (2) The grounds on which based; and (3) The provisions …

The commissioner may institute such actions or other proceedings as may be required for enforcement of any provisions of this title. If the commissioner has reason to believe that any person has violated any provision of this title for which criminal prosecution would be in order…

(a) A Commissioner of Insurance shall be chief executive officer of the department. The commissioner shall be appointed by the Governor. He shall serve for a term concurrent with that of the Governor by whom he is appointed, or for the unexpired portion thereof. (b) The commissio…

(a) If he has reason to believe that any such person has violated or is violating any provision of this title or upon complaint by any resident of this state indicating that any such violation may exist, the commissioner may examine the accounts, records, documents, and transacti…

(a) For the purpose of determining its financial condition, ability to fulfill its obligations and compliance with the law, the commissioner shall examine the affairs, transactions, accounts, records, and assets of each authorized insurer, and the records of surplus line brokers …

(a) The commissioner may conduct any such examination in person or by examiners regularly employed and commissioned by him in writing for the purpose. No person shall be eligible for designation as an examiner to examine an insurer unless by reason of experience as an accountant,…

(a) The examination may be conducted by the commissioner or his accredited examiners at the offices wherever located of the person being examined and at such other places as may be required for determination of matters under examination. (b) Every person being examined, its offic…

(a) The commissioner, or his or her examiner, shall make a full and true written report of each examination. The examination report shall contain only information obtained from examination of the books, records, accounts, files, or other documents of, or relative to, the person e…

(a) Each person being examined shall pay to the commissioner the travel expense to and from such examination, a living expense allowance at such reasonable rates customary for such examination in which state the examination takes place and established or adopted by the commission…

Generally. (a) As to the subject of any examination, investigation, or hearing being conducted by him, the commissioner may subpoena witnesses and administer oaths or affirmations and examine any individual under oath or take depositions and, by subpoena duces tecum, may require …