Alabama
Summary
A NAIC model state. Alabama was one of the first states to act after the NAIC model adoption. For good reason. Alabama Insurance Department General Counsel Mike Bownes was the key architect of the NAIC Service Contract Model Act. Bownes is one of the most respected insurance regulatory attorneys in the United States. He took great caution and care to provide a limited and balanced law while attempting to address virtually all forms of service contract arrangements.
Of great importance was Bownes pronouncement in the NAIC record that once and for all, the NAIC has determined that service contracts are not the business of insurance.
Essentials of the law are registration with the state, financial assurance, consumer disclosures and limited oversight and enforcement.
REGULATIONS
None at this time
