Property insurers in Alabama will no longer be able to cancel
or non-renew policies because of natural disasters or because of losses that don’t affect that line of business, t
he Alabama Department of Insurance announced in a recent bulletin.
Personal and commercial property insurance carriers, along with automobile insurers admitted in the state, for n
ew policies after Feb. 1, 2026, and for renewals after April 1, also sh
all not raise premiums or add a surcharge due to claims from disasters, weather events or losses outside the line of business.
The DOI did not give an example of such losses, nor did it explain what may have prompted the change to existing r
egulations. Officials there could not be reached for comment, and insurance industry representatives reached Tuesday were left wondering.
The rule does not prohibit carriers from cancelling or non-renewing policies because of misrepresentation o
r fraud by the insured, nor from discontinuing a claims-free discount after a claim has been filed.
The DOI also said that carriers that have rating rules that do not comply with the new regulation should file an
amendment to their rating manuals through the System for Electronic Rate and Form Filing, known as SERFF.
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In 2015, while working for the Belvedere Fire Company, Corey Ferrell was involved in a motor vehicle crash, sustaining a compensable back injury. In 2018,
he accepted a commutation of his claim by accepting a one-time lump sum payment and releasing the insurer for Belvedere from further liability.
In 2023, Ferrell injured his back again. This time, working for the Wilmington Fire Department, he was on a call
at a high-rise apartment building. He said that he felt a “pop” in his back when he was ascending stairs to bring spec
ial equipment in a “high-rise pack” weighing 30–40 pounds to a f
ellow firefighter. A follow-up MRI showed disc bulges, herniations, and a disc protrusion in the same anatomical area as the 2015 injury.
Wilmington FD denied Ferrell’s claim for workers’ compensation and the parties submitted the disputed claim to the Industrial Accident Board (IAB).
The IAB found that the 2023 incident did not aggravate the 2015 injury and did not cause a new, separatel
y compensable injury to Ferrell. The IAB noted that a comparison of Ferrell’s MRIs showed the expected progression of spinal deterioration from the 2015 injury, and t
hat the act of walking up the stairs carrying the high-rise packs was not enough to create a “genuine intervening event.”
The IAB concluded that the 2023 incident was a recurrence of F
that injury. The IAB therefore held that liability for the 2023 incident would remain under the 2015 claim incurred while h
e was at Belvedere and denied Ferrell’s petition for workers’ compensation coverage from the Wilmington FD.