SB47 ENROLLED
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SB47
DM1CNT-2
By Senator Shelnutt
RFD: Banking and Insurance
First Read: 06-Feb-24
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SB47 Enrolled
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First Read: 06-Feb-24
Enrolled, An Act,
Relating to motor vehicle insurance; to amend Section
32-7-35, Code of Alabama 1975, to establish the Alabama
Automobile Insurance Plan; to provide for the Commissioner of
Insurance Department to approve the Alabama Automobile
Insurance Plan to equitably apportion the cost of certain high
risk motor vehicle liability policies; to authorize the
issuance of these policies in the name of the plan; and to
provide that no policy issued in the name of the plan shall
create liability to the department, or any of its officers or
employees, or the state.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 32-7-35, Code of Alabama 1975, is
amended to read as follows:
"ยง32-7-35
(a) After consultation with insurance companies
authorized to issue automobilemotor vehicle liability policies
in this state, the Commissioner of Insurance shall approve a
reasonable plan, to be known as the Alabama Automobile
Insurance Plan, or plans for the equitable apportionment of
costs among suchinsurance companies offor motor vehicle
liability policy applicants for such policies and for motor
vehicle liability policies who are in good faith entitled to
but are unable to procure such policies through ordinary
methods. The Alabama Automobile Insurance Plan shall be
administered in accordance with the plan by a governing
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administered in accordance with the plan by a governing
committee, consisting of members approved by the commissioner.
When any such plan has been approved,Once the commissioner
approves the plan, all such insurance companies authorized to
issue motor vehicle liability policies in this state shall
subscribe thereto and participate thereinto the plan.
(b) The governing committee may authorize one or more
service providers to issue motor vehicle liability policies in
the name of the Alabama Automobile Insurance Plan and provide
policyholder and claims services. Any policy issued pursuant
to this section shall be recognized as if issued by an
insurance company authorized to issue insurance in this state.
Such a policy shall also be considered as proof of financial
responsibility or insurance pursuant to Chapter 7 and Chapter
7A of Title 32, or any other applicable requirement of state
law.
(c) Any applicant for any such policy, or any person
insured under any such planby a policy provided under the
Alabama Automobile Insurance Plan, and any insurance company
affected by the administration of the plan may appeal to the
Commissioner of Insurancecommissioner from any ruling or
decision of the governing committeemanager or committee
designated to operate such plan. Any person aggrieved
hereunder by any order or act of the Commissioner of Insurance
may, within 10 days after notice thereof, may file a petition
in the Circuit Court of Montgomery County, Alabama, for a
review thereof. The court shall summarily hear the petition
and may enter any appropriate order or judgment.
(d) This section shall not revoke any exception granted
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(d) This section shall not revoke any exception granted
to the automobile assigned risk plan under any other provision
of this code.
(e) Annually, the governing committee shall file an
audited financial report with the commissioner.
(f) The commissioner may establish regulations required
to implement the purposes of this section."
Section 2. This act shall become effective on October
1, 2024.
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1, 2024.
________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB47
Senate 27-Feb-24
I hereby certify that the within Act originated in and passed
the Senate.
Patrick Harris,
Secretary.
House of Representatives
Passed: 19-Mar-24
By: Senator Shelnutt
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