Read the full stored bill text
HB296 ENGROSSED
Page 0
HB296
DGMFYTH-2
By Representative Brown
RFD: Insurance
First Read: 20-Jan-26
1
2
3
4
5
HB296 Engrossed
Page 1
First Read: 20-Jan-26
A BILL
TO BE ENTITLED
AN ACT
Relating to consumer protection; to establish the
Rental Home Marketplace Guarantees Act; to define and regulate
rental home marketplace guarantees; to provide administration,
registration, and enforcement duties upon the Commissioner of
Insurance; and to provide for financial penalties for
violations of the act.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as
the Rental Home Marketplace Guarantees Act.
Section 2. As used in this act, the following terms
have the following meanings:
(1) COMMISSIONER. The Alabama Commissioner of
Insurance.
(2) PERSON. An individual, partnership, corporation,
incorporated or unincorporated association, joint stock
company, syndicate, or any similar entity or combination of
entities acting in concert.
(3) PLATFORM CONTRACT HOLDER. A platform user who is
the beneficiary or holder of a rental home marketplace
guarantee.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
HB296 Engrossed
Page 2
guarantee.
(4) PROVIDER. A rental home marketplace doing business
in this state or an affiliate or representative of the rental
home marketplace that issues, offers, or administers a rental
home marketplace guarantee either directly or through a third
party.
(5) REIMBURSEMENT INSURANCE POLICY. A policy of
insurance issued to a provider that states that the insurer
will cover all liabilities and duties under the rental home
marketplace guarantee if the provider defaults or fails to
perform.
(6) RENTAL HOME MARKETPLACE. A person who meets all of
the following criteria:
a. Provides an online application, software, website,
system, or other medium through which a property is advertised
or is offered to the public as available in this state and
that connects platform users to enable them to share property.
b. Provides, directly or indirectly, or maintains an
online platform by performing any of the following:
1. Transmitting or otherwise communicating the offer or
acceptance of a transaction between two platform users.
2. Owning or operating the electronic infrastructure or
technology that brings two or more platform users together.
3. If engaged in the offering of rental home
marketplace guarantees, does so only in a manner that is
ancillary to the conduct of its primary legitimate business or
activity.
c. Is not a local or state governmental entity.
d. Does not maintain a principal place of business in
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
HB296 Engrossed
Page 3
d. Does not maintain a principal place of business in
this state.
(7) RENTAL HOME MARKETPLACE GUARANTEE. A contract or
agreement issued in connection with a rental home marketplace,
whether or not for separate consideration, to reimburse a user
sharing property for any damages for which the renter is
responsible under the rental home marketplace's terms of
service, with or without additional provisions for incidental
payment of indemnity for related damages.
Section 3. (a) A rental home marketplace guarantee
shall not be issued or offered in this state unless the
provider has made the rental home marketplace guarantee terms
available on the provider's website and has complied with this
act.
(b) No later than March 1, 2027, or prior to commencing
offering rental home marketplace guarantees, providers of
rental home marketplace guarantees offered in this state shall
file a registration with the commissioner on a form and at a
fee prescribed by the commissioner. Fees collected pursuant to
this section shall be deposited in the State Treasury to the
credit of the Insurance Department Fund.
(c) No later than July 1, 2027, or prior to commencing
offering rental home marketplace guarantees, each provider
must obtain and maintain a reimbursement insurance policy
issued by an insurer authorized to transact insurance in this
state or written pursuant to Chapter 10 of Title 27.
Section 4. Rental home marketplace guarantees do not
constitute insurance and are not required to comply with any
provision of the insurance laws of this state except as
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
HB296 Engrossed
Page 4
provision of the insurance laws of this state except as
provided in this act.
Section 5. (a) Reimbursement insurance policies
insuring rental home marketplace guarantees offered in this
state shall clearly state that, upon default or nonperformance
of the provider under the rental home marketplace guarantee,
the insurer that issued the policy shall pay on behalf of the
provider any sums the provider is obligated to pay according
to the rental home marketplace guarantee.
(b) A reimbursement insurance policy shall be subject
to the laws and regulations governing termination and
nonrenewal of insurance policies in this state. The
termination of a reimbursement insurance policy shall not
reduce the issuer's responsibility for rental home marketplace
guarantees issued by providers before the effective date of
the termination.
(c) A provider is the agent of the insurer that issued
the reimbursement insurance policy. The insurer may seek
reimbursement from the provider for any payments made to a
platform contract holder which the provider was initially
obligated to pay. This act does not prevent or limit that
right.
Section 6. (a) Rental home marketplace guarantees
offered in this state shall include a statement in
substantially the following form: "This rental home
marketplace guarantee is not an insurance contract."
(b) Rental home marketplace guarantees shall contain a
statement in substantially the following form: "A
reimbursement insurance policy backs obligations of the
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
HB296 Engrossed
Page 5
reimbursement insurance policy backs obligations of the
provider. If the provider is unable or fails to perform on its
contractual obligation under a rental home marketplace
guarantee within 180 days after proof of loss has been filed,
a platform user is entitled to make a claim directly against
the insurance company, subject to the terms of the policy."
(c) Rental home marketplace guarantees shall be written
in clear, understandable language and shall specify the terms,
limitations, exceptions, conditions, or exclusions, including
conditions governing transferability or termination.
(d) In connection with the offer or advertisement of a
rental home marketplace guarantee, a provider shall not make,
permit, or cause to be made any false or misleading statement
or deliberately omit any material statement that would be
considered misleading if omitted.
Section 7. (a) The commissioner may conduct
investigations of providers or other persons to enforce this
act and protect platform contract holders in this state. Upon
the commissioner's request, the provider shall make all
accounts, books, and records concerning rental home
marketplace guarantees sold in this state by the provider
available to the commissioner, which are necessary to enable
the commissioner to determine compliance or noncompliance with
this act.
(b) Investigations conducted by the commissioner shall
be pursuant to the same examination authority of the
commissioner relative to insurers as provided in Chapter 2 of
Title 27, Code of Alabama 1975, and investigation expenses
shall be processed as examination expenses in accordance with
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
HB296 Engrossed
Page 6
shall be processed as examination expenses in accordance with
Section 27-2-25, Code of Alabama 1975, which may be presented
periodically during the investigation or at the end of the
investigation, as the commissioner deems appropriate.
(c) The commissioner may take action that is necessary
or appropriate to enforce this act and the commissioner's
regulations and orders, and to protect platform contract
holders in this state.
(d) If a provider has violated this act or the
commissioner's regulations or orders, the commissioner may
issue an order directed to that provider: (i) to cease and
desist from committing violations of this act or the
commissioner's regulations or orders; (ii) to prohibit the
selling or offering for sale rental home marketplace
guarantees in violation of this act; (iii) to impose a civil
penalty; or (iv) any combination of the foregoing.
(e) A provider negatively impacted by an order issued
under subsection (d) may request a hearing before the
commissioner. The hearing request shall be filed with the
commissioner no more than 20 days from the effective date of
the commissioner's order.
(f) If a hearing is requested, the effective date of
the order is automatically suspended until the hearing is
complete and the commissioner has reached a final decision.
(g) A provider shall have the same rights as insurers
to request a hearing in accordance with Article 1 of Chapter 2
of Title 27, Code of Alabama 1975, and to appeal as provided
in Section 27-2-32, Code of Alabama 1975.
(h) The commissioner may bring an action in the Circuit
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
HB296 Engrossed
Page 7
(h) The commissioner may bring an action in the Circuit
Court of Montgomery County, Alabama, for an injunction or
other appropriate relief to enjoin threatened or existing
violations of this act or of the commissioner's orders or
regulations. An action filed under this section may also seek
restitution on behalf of providers negatively impacted by a
violation of this act or orders or regulations of the
commissioner.
(i) A provider who is found to have violated this act
may be ordered to pay to the commissioner a civil penalty in
an amount determined by the commissioner of not more than five
hundred dollars ($500) per violation and no more than ten
thousand dollars ($10,000) in the aggregate for all violations
of a similar nature. For purposes of this section, violations
shall be of a similar nature if the violation consists of the
same or similar course of conduct, action, or practice,
regardless of the frequency of the specific act.
Section 8. The commissioner may adopt regulations to
implement this act.
Section 9. This act shall become effective on October
1, 2026.
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
HB296 Engrossed
Page 8
1, 2026.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Insurance
................20-Jan-26
Read for the second time and placed
on the calendar:
1 amendment
................29-Jan-26
Read for the third time and passed
as amended
Yeas 97
Nays 1
Abstains 5
................17-Feb-26
John Treadwell
Clerk
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209