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State statute · Alabama

Ala. Code Title 27, Chapter 12 (Unfair Methods of Competition and Unfair or Deceptive Acts and Practices): Alabama Trade Practices Law

Publisher
Alabama Legislature / Legislative Services Agency
Edition
Code of Alabama 1975, ALISON online edition, Title 27 Chapter 12 as served 2026-09-16
Last checked
2026-09-16
Status
US state statute
Edition and licensing notes

Publisher. Alabama Legislature / Legislative Services Agency (ALISON)

Status. US state statute.

Read the official textPractice questions from this source

What this document is

Alabama Trade Practices Law - Ala. Code Title 27, Chapter 12 (Unfair Methods of Competition and Unfair or Deceptive Acts and Practices) is a state statute published by Alabama Legislature / Legislative Services Agency (ALISON). It is one of the Alabama documents that insurance license exam questions are written from, including alabama property & casualty, alabama personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

  • Ala. Code Section 27-12-14(a) (Inducements as to Property, Casualty, or Surety Insurance)
    “(a) No property, casualty, or surety insurer, or any employee thereof, and no broker, agent, or solicitor shall pay, allow, or give, or offer to pay, allow, or give, directly or indirectly, as an inducement to insurance or after insurance has been effected, any rebate, discount, abatement, credit,...”
  • Ala. Code Section 27-12-15 (Purchase of Insurance as Condition Precedent to Sale or Loan on Property)
    “This section shall not prevent the exercise by any person, firm, or corporation of its right to designate reasonable and nondiscriminatory financial requirements as to insurer, the terms and provisions of the policy and the adequacy of the coverage with respect to insurance on property pledged or...”
  • Ala. Code Section 27-12-17(b) (Collection of Premiums or Charges When Insurance Not Provided; Excess Premium or Charge)
    “nor shall it be deemed to prohibit an Alabama licensed producer from charging a collection fee of up to one and one-half percent per month on unpaid balances for insurance premiums; nor shall it be deemed to prohibit the charging of administrative fees by an Alabama licensed producer to process...”
  • Ala. Code Section 27-12-24 (Refusal of Insurer to Pay or Settle Claims)
    “No insurer shall, without just cause, refuse to pay or settle claims arising under coverages provided by its policies in this state and with such frequency as to indicate a general business practice in this state, which general business practice is evidenced by:”
  • Ala. Code Section 27-12-14(e) (Inducements as to Property, Casualty, or Surety Insurance)
    “(e) No person in this state shall advertise, offer, or provide free insurance as an inducement to the purchase or sale of real or personal property or of services, directly or indirectly, connected with such real or personal property.”
  • Ala. Code Section 27-12-21(b) (Proceedings on Unfair Competition, Etc., Not Defined Under Chapter - Generally)
    “(b) If such report charges a violation of this trade practices law and if such method of competition, act, or practice has not been discontinued, the commissioner may, through the Attorney General of this state, at any time after 30 days after the service of such report, cause a petition to be...”

Practice this material

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Questions about this source

Alabama Trade Practices Law - Ala. Code Title 27, Chapter 12 (Unfair Methods of Competition and Unfair or Deceptive Acts and Practices) is a state statute published by Alabama Legislature / Legislative Services Agency (ALISON). Edition: Code of Alabama 1975, ALISON online edition, Title 27 Chapter 12 as served 2026-09-16.

No. This page summarizes the document and links to the official version. Always rely on the text published by Alabama Legislature / Legislative Services Agency (ALISON) for the current law.

Practice questions for Alabama Property & Casualty, Alabama Personal Lines cite this document.

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