Alabama Senate Bill SB151

Alabama 2025 Regular Session

• Introduced: 2/11/25
• Refer: 2/11/25
• Report Pass: 3/5/25
• Refer: 3/6/25
• Report Pass: 4/2/25

Caption

Department of Insurance, internal Code of Alabama 1975 citations corrected

Impact

If enacted, SB151 will ensure that the references in these insurance sections are accurate, thus providing clarity and reducing potential legal disputes regarding insurable interests and policy loans. By amending these internal citations, the bill aims to modernize Alabama's insurance regulatory framework to better align with contemporary practices and legal standards. This reform is essential for maintaining reliable and enforceable insurance agreements within the state.

Summary

SB151 is a bill introduced in the Alabama legislature aimed at correcting outdated internal citations in the insurance laws of the state, specifically within the Code of Alabama 1975. The bill addresses Sections 27-14-3 and 27-15-8, which govern the concepts of insurable interest in personal insurance and the conditions under which life insurance policies may be loaned against. This legislative effort is prompted by the recognition that these sections contain antiquated references that may create confusion or conflict in their application.

Contention

Notably, while the nature of SB151 seems largely administrative and technical, any changes to the legal framework governing insurance can evoke debate concerning the implications for consumers and insurers alike. Stakeholders might express concerns about how such amendments influence existing policies, potential legal interpretations, and the overall regulatory environment. Hence, continued discussion and support from both the insurance industry and consumer advocacy groups will be vital in ensuring the successful passage of this bill.