HB470 Summary

• Domestic insurers who sign an agreement with Alabama to remove residential wind policies from the Alabama Insurance Underwriters Association (AIUA) become eligible for $2,500,000 in one-time economic incentives.

• Insurers with assets exceeding $100,000,000 must acquire at least 1,000 AIUA policies within 12 months; those with less than $100,000,000 in assets must acquire at least 300 policies.

• Failure to meet acquisition targets triggers repayment requirements: 50% of funds must be repaid if acquisition exceeds 50% of agreed policies, or 100% repayment if acquisition falls below 50%.

• At least 15% of acquired policies must originate from each of the four AIUA zones to qualify for incentives.

• Insurance Commissioner must report to the Governor and Legislature 30 days before the 2013 legislative session with program results and recommendations regarding expansion to non-domestic companies or program extension.