SB298 Alabama 2016 Session

Under existing law, all insurers authorized and writing property insurance in the State of Alabama are required to be members of the Alabama Insurance Underwriting Association, which was established to provide a method whereby essential property insurance coverage would be provided in any county contiguous to the Gulf of Mexico and Mobile Bay

This bill would create the Alabama Coastal Insurance Authority for the purpose of providing affordable windstorm insurance for owners of insurable property in any county contiguous to the Gulf of Mexico and Mobile Bay

This bill would provide for the selection of the board of directors of the authority

This bill would provide for the adoption of the plan of operation of the authority, including the process for post-loss assessments of policyholders and assessable insurers

This bill would authorize the sale of bonds and would require assessable insurers to purchase any bonds remaining unsold after 60 days based on the percentage of participation of each insurer

This bill would authorize the Commissioner of Insurance to require the authority to submit quarterly and annual financial statements and to be subject to rate and form filing requirements

This bill would exempt the authority from paying insurance premium taxes and other license and privilege taxes

This bill would authorize the authority to assess policyholders in the event of excess losses; to record property liens to secure payments; and to negotiate with local tax assessors, tax collectors, or revenue commissioners for the collection of assessments

This bill would authorize assessable insurers to recoup authority assessments from their policyholders

This bill would require the authority to use licensed insurance producers

This bill would exempt bonds, properties, and income of the authority from taxation

This bill would declare the debt assumed and created by the authority and all bonds issued by the authority to be solely and exclusively obligations of the authority and not debts of the state

This bill would authorize the Commissioner of Insurance to discontinue the Alabama Insurance Underwriting Association to permit an orderly transition for policyholders from the association to the authority

To add Chapter 22B to Title 27, Code of Alabama 1975, to create the Alabama Coastal Insurance Authority for the purpose of providing affordable windstorm insurance for owners of insurable property in any county contiguous to the Gulf of Mexico and Mobile Bay; to provide for the selection of the board of directors of the authority; to provide for the adoption of the plan of operation of the authority, including the process for post-loss assessments of policyholders and assessable insurers; to authorize the sale of bonds and require assessable insurers to purchase any bonds remaining unsold after 60 days based on the percentage participation of each insurer; to authorize the Commissioner of Insurance to require the authority to submit quarterly and annual financial statements and to be subject to rate and form filing requirements; to require the authority to provide for reduced premium rates through post-loss financing programs; to exempt the authority from paying insurance premium taxes and other license and privilege taxes; to authorize the authority to assess policyholders in the event of excess losses; to record property liens to secure payments; to authorize the authority to negotiate with local tax assessors, tax collectors, or revenue commissioners for the collection of assessments; to authorize assessable insurers to recoup authority assessments from their policyholders; to require the authority to use licensed insurance producers; to exempt bonds, properties, and income of the authority from taxation; to declare the debt assumed and created by the authority and all bonds issued by the authority to be solely and exclusively obligations of the authority and not debts of the state; to authorize the discontinuation of the Alabama Insurance Underwriting Association to permit an orderly transition for policyholders from the association to the authority; and to repeal Section 27-1-24, Code of Alabama 1975, providing for the creation of the association.