Alabama: Auto Minimum Limits Increase in Sight

Bills to increase the auto minimum limits in Alabama have passed both houses in the Legislature. HB 15, which is identical to SB 4 that passed the Senate on Feb. 7, passed the House in a unanimous vote Feb. 26.

Both bills increase minimum auto limits from 20/40/10 to 25/50/25 and include an adequate time frame for implementation. It is expected that the measure will continue to move quickly to become law.

In other Alabama legislative news, three bills related to coastal insurance issues were approved by the Senate Banking and Insurance Committee Feb. 27. Senate bill 3, sponsored by Sen. Ben Brooks, would allow captive insurance companies to sell auto coverage.

Brooks also sponsored SB 5, which would create the Alabama Coastal Insurance Authority. The bill includes a long laundry list of measures, one of which is tax incentives for residents who retrofit their homes to be more storm resistant. But that provision has been removed due to pressure from the Alabama Education Association. The group traditionally opposes any legislation that potentially reduces funding for education.

Sen. Roger Bedford sponsored SB 296 to codify the existing Alabama Insurance Underwriting Association. Codification of the “beach pool” is a step Commissioner Walter Bell has indicated he believes would be helpful going forward as the state addresses the availability and affordability of insurance along the coast.

“NAMIC will continue to work with member companies and other industry representatives in Alabama to encourage a balanced approach to coastal insurance solutions,” said Liz Reynolds, NAMIC's Southeast.

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

Posted: Tuesday, March 04, 2008 12:00:00 AM. Modified: Tuesday, March 04, 2008 2:46:06 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.