Alabama Senate Bill SB201

Alabama 2023 Regular Session

• Introduced: 4/11/23
• Refer: 4/11/23
• Report Pass: 4/13/23
• Engrossed: 4/27/23
• Refer: 4/27/23

Caption

Relating to mandatory motor vehicle liability insurance; to amend Section 32-7A-5, Code of Alabama 1975, to provide an exception to allow an individual on active military duty, whose motor vehicle is registered in Alabama but who, as a result of his or her military assignment, is required to reside in another state, to satisfy the requirement for mandatory motor vehicle liability insurance by purchasing liability coverage in the state where residing on active military duty or assignment in an amount equal to or greater than the minimum amount required in Alabama.

Impact

The enactment of SB201 could significantly ease the burden on active military members by aligning their insurance obligations with their current state of residency rather than their home state. This is particularly relevant for service members who may be stationed far from Alabama and encounter challenges in obtaining or maintaining insurance policies that conform strictly with Alabama's requirements. If passed, the bill aims to acknowledge the unique circumstances faced by military personnel and to streamline regulatory compliance for these individuals.

Summary

SB201 is a proposed amendment to the Code of Alabama 1975, specifically Section 32-7A-5, addressing the mandatory motor vehicle liability insurance for service members on active duty. Under current law, every motor vehicle registered in Alabama must be insured, but SB201 introduces an exception for individuals who are on active military duty and required to live in another state due to their assignments. This bill allows these service members to purchase liability insurance from the state in which they are residing, as long as it meets or exceeds Alabama's minimum coverage requirements.

Contention

While the bill appears to serve the needs of a specific demographic—active duty military personnel—there may be discussions about potential unintended consequences. Critics may argue about the risks of maintaining adequate insurance coverage across varying state regulations. Some may concern themselves with whether the bill adequately ensures that military personnel are consistently covered during their absence from Alabama. Moreover, stakeholders, including residents and insurance providers, may express differing opinions on how this amendment might shape insurance practices or affect in-state insurance market stability.