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NAMIC 2006 Survey of New State Insurance Laws Summary and Analysis

2006 SUMMARY OF NEW STATE LAWS - ALABAMA

Alabama State Legislative Website

BILL #

CHAPTER #

ISSUE

BILL DESCRIPTION

HB 117

654

Motor vehicle insurance - traffic offenses

Relates to driving under the influence of alcohol or a controlled substance, prior convictions from another state or municipality and consideration for enhancement of sentence. (Same as SB 230). Effective: April 28, 2006.

HB 142

546

Motor vehicle insurance - enforcement issues

Relates to motor vehicles; concerns motorists approaching a stationary authorized emergency vehicle in specified circumstances required to yield the right-of-way by making a lane change into a lane not adjacent to that of the authorized emergency vehicle; provides for reduction of speed. Effective: July 1, 2006.

HB 152

213

Motor vehicle insurance - enforcement issues

Creates the designation of flood vehicle; requires the disclosure on the motor vehicle's title and by separate written disclosure to a prospective purchaser that the motor vehicle had been submerged in water. Effective: March 9, 2006.

HB 288

628

Workers' compensation - disputes and settlements

Relates to transfers of structured settlement payment rights; provides definitions of terms used in this act; provides for required disclosures to the payee; requires a disclosure statement be provided to the payee by the transferee not less than three days prior to the date on which a payee signs a transfer agreement; prescribes the style of and what shall be set forth in the disclosure statement from the transferee to the payee. Effective: July 1, 2006.

SB 38

623

Motor vehicle insurance - traffic safety

Relates to child passenger restraints; provides for the use of child passenger restraints; increases the fine; provides for a point system; provides for dismissal of charges upon proof of acquisition of an appropriate child passenger restraint; provides for $15 to be deposited in the State Treasury to be disbursed by the State Comptroller to the Alabama Head Injury Foundation to administer; subjects the foundation to examination by the Examiners of Public Accounts. Effective: July 1, 2006.

SB 68

148

Identity theft - personal information

Relates to the crime of identity theft; removes the provision classifying the crime of identity theft as a misdemeanor under certain circumstances; classifies all instances of the crime of identity theft as a Class C felony; authorizes the victim of any such offense to request the court to enter an order for the public and private records of the victim to be corrected; provides further for the statute of limitation; provides for damages. Effective: April 6, 2006.

SB 251

299

Producer licensure -licensing requirements

Relates to insurance regulation, to provide for the biennial renewal of licenses for insurance producers, service representatives, and adjusters; requires individuals to complete 20 hours of prelicensing education for each major line of authority to qualify to take the insurance producer examination for those lines of authority. Effective: Sec. 2, immediately; rest on Jan. 1, 2007.

SB 305

509

Captives

Relates to insurance; provides for the regulation, taxation, operation, and merger and conversion of captive insurance companies. Effective: April 17, 2006.

SB 373

414

Motor vehicle insurance - salvage title

Relates to abandoned motor vehicles; provides for procedures related to the sale of abandoned motor vehicles. Effective: July 1, 2006.

SB 417

294

Producer licensure - licensing requirements

Relates to certain definitions for the licensing of various insurance representatives; includes persons employed by insurance producers within the definition of service representatives; includes limited lines credit insurance, a limited liability partnership, fraternal benefit societies, automobile clubs and a legal insurance corporation. Effective: July 1, 2006.

SB 429

415

Military personnel insurance related legislation

Relates to the driver's licenses of residents who are members of the National Guard and members of the Armed Forces of the United States; provides for the extension of the expiration date of the licenses when the member is deployed outside of the United States; provides for the Department of Public Safety to establish procedures for the renewal of driver's licenses of members of the Armed Forces on active duty prior to the expiration of the license. Effective: July 1, 2006.

HJR 87

447

Motor vehicle insurance - UM/UIM

Creates the uninsured motorist compliance joint interim legislative committee to study all facets of compliance with mandatory liability insurance statutes.

HJR 653

500

Building codes

Creates the Alabama Building Code Study Commission to identify minimum standards for construction to respond to federal requirements for the Federal Emergency Management Agency aid after a natural disaster such as a tornado, flood, hurricane, fire, or earthquake.

The information contained in this summary is not intended as a portrayal of every property/casualty-related law enacted in each state. Rather, it represents recently enacted legislation specifically identified by NAMIC State and Regulatory Affairs Staff as bearing direct relevance to those issues that represent NAMIC's National State Legislative Agenda or otherwise deemed pertinent to the interests of the majority of NAMIC members.

This summary is for use as a convenient tool for our members, and is not intended, and should not be considered to be, legal advice. Please consult your legal representatives.