HB729 Summary

• Amends Section 27-1-24, Code of Alabama 1975, to redefine the Coastal Area as consisting of Zones 1, 2, 3, and 4 as designated by the Alabama Insurance Underwriting Association.

• Establishes a two-unit credit system for voluntary insurance writings in the Coastal Area: Unit One (Zones 1, 2, and 3) and Unit Two (Zone 4), with credits calculated separately for each unit.

• Provides credit rates for Coastal Area writings of 100 percent for fire insurance policies, 75 percent for homeowners and mobile homeowners policies, and 50 percent for commercial multi-perils policies.

• Excludes policies without wind and hail coverage and farm premiums from eligibility for Coastal Area credits.

• Becomes effective on the first day of the third month following passage and approval by the Governor.