A recent Alabama Department of Insurance bulletin discusses possible violations of the Alabama Trade Practices Law (ATPL) by insurers admitted in Alabama. The ATPL prohibits a property and casualty insurer from directly or indirectly requiring an insurance customer to purchase additional types of insurance such as life insurance or automobile insurance from the insurer or its affiliates as an express or implied condition of the customer obtaining homeowners insurance coverage from that insurer. These provisions of the ATPL are also violated if an insurer predicates a decision to renew an existing homeowners insurance policy on whether the insured had in effect other insurance business with the insurer or its affiliates as of a specific earlier date. In the bulletin the Insurance Department required any insurance company that engaged in this practice within the last 12 months to inform the Department by February 28th. Something must have been going on for the Department to send out this bulletin. I would like to hear from any of our Alabama readers who may have knowledge of what prompted the Department to take this action.
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