Personal Property By-Peril Rating Requirements - Insurance Reg. 152 (Chapter 482-1-152)

[LOGO] ROBERT BENTLEY GOVERNOR JIM L. RIDLING 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 COMMISSIONER CHARLES M. ANGELL CHIEF OF STAFF MARK FOWLER CHIEF EXAMINER RICHARD L. FORD STATE FIRE MARSHAL EDWARD S. PAULK GENERAL COUNSEL REYN NORMAN ## BULLETIN 2016-05 TO: All Property Insurers Licensed in Alabama FROM: Jim L. Ridling, Commissioner DATE: June 9, 2016 JLR RE: Personal Property By-Peril Rating Requirements Insurance Regulation 152 (Chapter 482-1-152) EFFECTIVE: Immediate All property insurers licensed in this state are hereby reminded of the effective dates contained within Regulation 152 (Chapter 482-1-152) relating to Personal Property By-Peril Rating Requirements. In particular, regarding the requirement for filing and approval and actuarial support, paragraphs (1) and (2) of Rule 482-1-152-.06 read as follows: (1) The requirements of this rule apply to all homeowner, renters/tenants, and condominiums (unit owners) rate filings within the scope of this chapter made to the Department to be effective on or after January 1, 2018. All such rate filings shall be made on or before June 1, 2017. (2) The requirements of this rule apply to all dwelling fire rate and extended coverage filings within the scope of this chapter made to the Department to be effective on or after January 1, 2019. All such rate filings shall be made on or before June 1, 2018. Additionally, in regard to the requirement for disclosure of separate premiums by peril on declaration page, billing statement, or policy checklist, paragraphs (1) and (2) of Rule 482-1-152-.07 read as follows: (1) The requirements of this rule apply to homeowner, renters/tenants, and condominiums (unit owners) policies of new business with an effective date on or after January 1, 2018 and to existing homeowner policies at the time of renewal with a renewal date on or after January 1, 2018. (2) The requirements of this rule apply to policies of new dwelling fire/extended coverage policies with an effective date on or after January 1, 2019 and to existing Bulletin No. 2016-05 June 9, 2016 Page 2 dwelling fire/extended coverage policies at the time of renewal with a renewal date on or after January 1, 2019. Any insurer subject to these requirements that fails to make the disclosures by the indicated deadlines will be deemed to have willfully violated the rating laws and may become subject to an order to show cause as to why its certificate of authority should not be suspended for the willful violation of law. An order to show cause, if issued, will be resolved by consent order per the following guidelines: (a) During the first three months following the effective date (January through March), payment of $100 per policy issued or renewed in violation of the requirements. (b) During the next three months following the effective date (April through June), payment of $150 per policy issued or renewed in violation of the requirements. (c) During the next three months following the effective date (July through September), payment of $200 per policy issued or renewed in violation of the requirements. (d) During the next three months following the effective date (October through December), payment of $250 per policy issued or renewed in violation of the requirements. If the imposition of a settlement payment in lieu of suspension described above will cause serious financial distress for any insurer, the insurer may petition the commissioner for a reduction in or waiver of the payment set forth in the schedule above. JLR/RN/ct