The Alabama General Assembly has adjourned after completing what was a relatively quiet session for insurers, according to the American Insurance Association (AIA).Prior to yesterday’s adjournment Gov. Bob Riley signed into law SB 4, increasing the auto liability minimum limits from 20/40/10 to 25/50/25. A similar bill was vetoed by the governor in 2007 due to the lack of any implementation period, which was corrected this year in SB 4. “The Alabama Legislature continued its traditional cautious and welcome approach to insurance legislation,” said Cecil Pearce, AIA vice president, southeast region. “For example, although it’s a coastal state, legislators rejected bills that would have given government a greater role in the homeowners insurance market. A bill that did pass -- the modest increase in the auto required minimum limits coverage -- was appropriate given that the minimum limits had not been adjusted since 1984.” This year’s version of SB 4, the minimum limits legislation, provides for a 90-day implementation period for new policies and 180 days for renewal policies, which is a reasonable amount of time for carriers to adjust their operational procedures and for policyholders to be given timely notice. The 2007 bill would have been effective upon the governor’s signature. AIA is disappointed that legislators failed to approve a bill to establish a state Building Code Council, which would have the responsibility of enacting a statewide building code, which the state does not currently have. Other measures receiving final approval: SB 296 – codifies the existing regulatory structure of the state Beach Pool Plan SB 3 -- allows captive insurance companies to sell auto and homeowners insurance. SB 365 – removes the exemption from workers’ compensation coverage for building contractors with fewer than five employees.
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