AL Code § 27-22-43 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 22 - Property Insurance Contracts.|Article 3 - Alabama Homeowners Bill of Rights Act.|Section 27-22-43 - Outline of Coverage and Comprehensive Policy Checklist.

Section 27-22-43Outline of coverage and comprehensive policy checklist.  (a) No homeowners personal lines residential property coverage insurance policy shall be delivered or issued for delivery in this state unless an appropriate outline of coverage and comprehensive policy checklist have been delivered to the policyholder prior to issuance, within 30 days after issuance of the policy under separate cover, or included in the policy when issued or mailed. The comprehensive policy checklist shall contain a list of provisions and elements, whether or not they are included in the policy being issued, in a format that allows the insurer to indicate what is and what is not included in the policy being issued. The outline of coverage and comprehensive checklist shall provide information on the policy and may, but is not required to, include coverage by endorsement. (b) To be in compliance with this section, an insurer may use an approved outline of coverage and comprehensive policy checklist, to be promulgated by the Alabama Department of Insurance. If a company wishes to create and use its own outline of coverage and comprehensive policy checklist, it must be approved by the Alabama Department of Insurance and include, at a minimum, the following: (1) A brief description of the type of coverage provided in the policy, amount of coverage, and whether the coverage is replacement cost or actual cash value. (2) A summary statement of the principal exclusions and limitations or reductions contained in the policy and any other limitations or reductions. (3) A summary of any additional coverages provided through any rider or endorsement that accompanies the policy, amount of that coverage, and whether the coverage is replacement cost or actual cash value. (c) In addition, an insurer must include the following language on the outline of coverage and comprehensive policy checklist: "The following is an outline of coverage and comprehensive policy checklist of your insurance policy and is for informational purposes only. Alabama law prohibits this checklist from changing any provisions of the insurance contract which is the subject of this checklist. Any endorsement regarding changes in types of coverage, exclusions, limitations, reductions, deductibles, coinsurance, renewal provisions, cancellation provisions, surcharges, or credits is not included in this checklist, unless otherwise indicated. This checklist does not operate to expand coverage beyond the coverage provided in the policy. If there is a contradiction between this checklist and the policy, the terms of this policy govern. "Policyholders should read their policy thoroughly. Policyholders should review their insurance policy annually with their insurance producer to ensure they are adequately covered." (d) Also, as part of the outline of coverage and comprehensive policy checklist, an insurance company shall include a section of the document which contains a checklist of provisions, coverage, and exclusions offered within a policy, whether or not they have been included, or accepted, as part of the policy being issued, or considered. The comprehensive policy checklist shall include, at a minimum, the following: (1) Property coverage for the principal premises shown in the declarations. (2) Property coverage for other structures on the residence premises. (3) Whether the principal premises and other structures are insured against the following perils: a. Fire. b. Lightning. c. Explosion. d. Wind and hail. e. Flood. f. Earthquake. g. Collapse. h. Mold. i. Theft. (4) Personal property and contents coverage and the amount of or percentage of coverage. (5) Whether personal property and contents are insured against the following perils: a. Fire. b. Lightning. c. Explosion. d. Wind and hail. e. Flood. f. Earthquake. g. Collapse. h. Mold. i. Theft. (6) Whether the policy provides the following additional coverage: a. Debris removal. b. Loss assessment. c. Additional living expenses. d. Personal liability coverage. e. Medical payments coverage. f. Named windstorm deductible. g. Building and ordinance or law coverage. (Act 2012-510, p. 1521, §4.)