SB 151 Alabama Senate · 2025 Regular Session

Department of Insurance, internal Code of Alabama 1975 citations corrected

SB 151 is a technical bill designed to correct outdated internal references within the Code of Alabama 1975. It specifically updates citations in existing laws related to insurable interest and life insurance policy loans, ensuring they accurately refer to the correct sections of the code.

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Apr 2025

Senate Passage

Mar 2025

House Passage

Apr 2025

Signed into Law

May 2025

Introduced Feb 11, 2025 Signed May 6, 2025

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What changed between versions

Introduced → Enrolled · 5 edits · May 6, 2025

MODERATE

This bill corrects outdated internal citations in Alabama insurance laws and clarifies insurable interest rules for corporations, trusts, and charitable organizations. The changes ensure legal references point to current code sections and expand protections for employee benefit trusts and preneed insurance contracts.

Scope change

The bill expands insurable interest provisions to include charitable organizations and clarifies rules for employee benefit trusts and preneed insurance contracts.

TECHNICAL

Updated internal code citations to reference current sections of the Code of Alabama 1975 instead of outdated references.

ELIGIBILITY

Added insurable interest provisions for charitable organizations that meet IRS 501(c)(3) requirements to own or purchase life insurance on consenting individuals.

REQUIREMENT

Expanded insurable interest rules for employee benefit trusts to include those providing life, health, disability, or retirement benefits to employees and their dependents.

Added restrictions on preneed insurance policies to ensure proceeds benefit only the contract purchaser, beneficiary, or funeral provider, not unrelated parties.

DEFINITION

Clarified that insurable interest must exist when the insurance contract becomes effective, but not necessarily when a loss occurs.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 29, 2025

Lower · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 1120

lower

Apr 2, 2025

Lower · Passed

Reported Out of Committee Second House

lower

Mar 6, 2025

Lower · Passed

Pending Committee Action in Second House (Insurance)

lower

Mar 6, 2025

Upper · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 296

upper

Mar 5, 2025

Upper · Passed

Reported Out of Committee House of Origin

upper

Feb 11, 2025

Upper · Passed

Pending Committee Action in House of Origin (Banking and Insurance)

upper

1 primary · 0 co-sponsors