Short Answer:
Yes.
Explanation:
The Alabama Consumer Credit Act, Ala. Code §§ 5-19-1 et seq. ("Mini-Code"), allows a creditor to require insurance against loss of or damage to the property in which the creditor is given a security interest. Ala. Code § 5-19-20(a).
The Mini-Code provides that, if the creditor requires insurance against loss of or damage to any property in which the creditor is given a security interest, the creditor must give the debtor written notice that the debtor has the option of choosing the person through which insurance is obtained. The Mini-Code allows the creditor to decline the insurance provided by the debtor for reasonable cause. Ala. Code § 5-19-20(e).
Under the Alabama Consumer Credit Act Regulations, Ala. Admin. Code rr. 155-2-2-.01 et seq. ("Mini-Code Regulations"), a creditor may not require supplementary coverage such as, but not limited to, rental reimbursement and contents coverage. Ala. Admin. Code r. 155-2-2-.12(10)(f).
Last Revision*:
July 30, 2021 Show Redlined Changes
* The Last Revision date is the last time we made a SUBSTANTIVE revision to the answer. The date DOES NOT represent the last time we reviewed the answer. We review our answers on an ongoing basis.