Bentley expected to sign home insurance legislation - WALA-TV FOX10
MONTGOMERY, Ala. (WALA) - The state's regular legislative session ends Wednesday and Governor Robert Bentley is expected to sign a group of insurance reform bills into law.
Four of the bills up for review will effect how insurance companies do business in Alabama and with you.
One question among homeowners will like be this: Will it save me money?
The short answer: Well, maybe.
"There won't be any overnight reduction in premiums ... Some of these bills don't go into effect for a few months or a year from now," said Commissioner Steve McMillan.
McMillan said the change in premiums should be noticable in 12 to 18 months.
HB230 gives tax breaks to companies insuring homes in high-risk zones, such as Baldwin and Mobile counties. HB210 expands how much information insurance companies will report.
"We feel like the rate setting from the Department of Insurance has not been well understood," said McMillan.
He said HB210 will give legislators a reliable history when insurance companies ask for rate increases.
HB164 allows Alabama insurance companies to invest out-of-state and even out-of -country, giving them more flexible investment options.
Finally, HB323. a long-awaited bill aimed at helping to prevent insurance fraud, could also get the governor's signature.
"We were one of the few states that did not have a fraud law ... They've been trying to get this passed since Jeff Sessions was the Attorney General," said McMillan.
In addition, a home owner's insurance bill of rights, which the senate could pass Wednesday, may reach the governor's desk.
"And it just requires that when a policy's up for renewal the individual home owners would be notified of exactly the coverage they have: what's covered and what's not," said McMillan.
McMillan says the governor could sign an executive order to implement more important parts of this bill if the senate doesn't pass it in time.
Also expected to be signed by governor Bentley on Wednesday is scrap metal legislation that will identify who sells scrap metal to recyclers.
If you can afford to do so, you don't need to wait to lower your insurance bill. McMillan says by retrofitting your home against storm damage, you can save right now.
"Once you reach a certain level of protection the insurance companies are mandated to give you a premium break," said McMillan.
If you can't afford that, Bentley said there could be options for you to save money coming soon.
"If we could get some money through BP, which, we don't know know when that's coming but if we could use part of the Restore Act to give mitigation grants to people to help them retrofit their home I know it would lower their premiums," said the governor.
14 May, 2012
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