AL| Alabama Department of Insurance Bulletin 2025-08, effective immediately and replacing Bulletin 2010-10, clarifies that certain insurer actions in the property and automobile lines are deemed unlawful trade practices under Ala. Code §§ 27-12-1 et seq., including when based solely on catastrophe, natural disaster, weather-related claims, or on a loss arising from an event not affecting the line of business in which the policy is placed. Beginning January 1, 2026, insurers may not cancel or non-renew personal or commercial property or auto policies solely due to such claims, and, for new policies written on or after February 1, 2026 and renewals on or after April 1, 2026, may not impose premium surcharges or move coverage to higher-priced tiers or affiliates solely for those reasons. The Bulletin also establishes a deadline of January 1, 2026 for insurers to amend noncompliant rating rules via SERFF and preserves the ability to take adverse action where there are additional substantial reasons (such as concealment, misrepresentation, or fraud) or to remove claims-free discounts after certain claims, subject to limitations; readers should consult the original Bulletin to review the specific bulleted conditions and exceptions in full.
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