Unlawful trade practices - property and automobile insurance-prohibition against certain cancellations, non-renewals, or premium increases

[LOGO] KAY IVEY GOVERNOR MARK FOWLER COMMISSIONER STATE OF ALABAMA DEPARTMENT OF INSURANCE 201 MONROE STREET, SUITE 502 POST OFFICE BOX 303351 MONTGOMERY, ALABAMA 36130-3351 TELEPHONE: (334) 269-3550 FACSIMILE: (334) 241-4192 INTERNET: www.aldoi.gov DEPUTY COMMISSIONERS JIMMY W. GUNN LARRY CHAPMAN RICHARD FIORE DUSTY SMITH CHIEF EXAMINER SHEILA TRAVIS STATE FIRE MARSHAL SCOTT F. PILGREEN GENERAL COUNSEL REYN NORMAN # REVISED BULLETIN 2025-08 TO: All property and casualty insurers admitted in Alabama FROM: Mark Fowler Commissioner of Insurance DATE: February 4, 2026 Mark Fowler EFFECTIVE: Immediate RE: Unlawful trade practices – property and automobile insurance – prohibition against certain cancellations, non-renewals, or premium increases REPLACES: Bulletin 2010-10 and issued Bulletin 2025-08 (December 15, 2025) This Bulletin adds to and replaces existing Department Bulletin 2010-10 to state that prohibited policy actions also include a loss arising from an event not affecting the line of business in which the affected policy was issued. It also replaces issued Bulletin 2025-08 (December 15, 2025) to change certain dates in response to feedback from insurers with regard to the issuance of Bulletin 2025-08 and its requirements. Except as changed below, all portions of Bulletin 2025-08 as issued remain unchanged. 1. Bulletin 2025-08, as issued on December 15, 2025, superseded Department Bulletin 2010-10, dated November 10, 2010, addressing prohibited policy cancellations and non-renewals. 2. Certain actions described in this Bulletin are deemed unlawful trade practices for purposes of the Trade Practices Law, Ala. Code §§ 27-12-1 et seq. This Bulletin applies to all personal and commercial property and automobile insurance policies issued by insurance companies authorized to write property and casualty insurance in Alabama and by the Alabama Insurance Underwriting Association. 3. Effective January 1, 2026, an insurer shall not cancel or non-renew a personal or commercial property insurance policy or automobile insurance policy if based solely on a claim arising from a catastrophe, natural disaster, acts of nature, weather-related causes, or based solely on a loss arising from an event not affecting the line of business in which the policy is placed. 4. Effective for new policies written on or after March 15, 2026, and for Alabama Department of Insurance Established 1897 Bulletin 2025-08 (revised) February 4, 2026 Page 2 policy renewals on or after May 15, 2026, an insurer shall not do any of the following acts with respect to a personal or commercial property insurance policy or automobile insurance policy if based solely on a claim arising from a catastrophe, natural disaster, acts of nature, or weather-related causes, or based solely on a loss arising from an event not affecting the line of business in which the policy is placed. (a) Apply a premium surcharge to such policy; or (b) Offer to place the coverage in another rating tier with the same insurer or place the coverage through an affiliated insurer if either such action would result in a higher premium. 5. By February 15, 2026, each insurer that has rating rules which do not comply with this Bulletin must file an amendment to its rating manual through SERFFSM and provide a complete updated manual in the filing. 6. This Bulletin does not prohibit: (a) Cancelling or non-renewing a policy in the event of a claim arising from a catastrophe, natural disaster, acts of nature, or weather-related causes, or based solely on a loss arising from an event not affecting the line of business in which the policy is placed if there are additional substantial reasons for such action such as concealment, misrepresentation, or fraud by the insured relating to the policy, whether before or after the claim; or (b) Removing or discontinuing a claims-free discount after a claim arising from a catastrophe, natural disaster, acts of nature, or weather-related causes. [Note: It is still prohibited to remove or discontinue a claims-free discount based solely on a loss arising from an event not affecting the line of business in which the policy is placed.] Questions concerning this Bulletin can be submitted by electronic mail to the Department's Rate & Forms Division at rates.forms@insurance.alabama.gov. MF/JFM