AL HR130

Urges the Board of Directors of the Alabama Insurance Underwriting Association (AIUA) to maintain its surplus at the current amount to protect policyholders in Mobile and Baldwin Counties

AIUA was voluntarily formed in the early 1970s and codified by the Alabama Legislature in 2008 to provide insurance coverage in coastal areas when private market coverage is unavailable

AIUA currently provides coverage to more than 32,000 consumers in Mobile and Baldwin Counties with a total insured value exceeding $5.6 billion

Membership in AIUA is required for all insurers authorized to write fire and extended coverage insurance in Alabama, with rates determined by independent actuaries and approved by the Alabama Department of Insurance

AIUA must assess its membership if claims exceed premiums and surplus, particularly following hurricanes or significant wind events