SR39 Summary

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

• The 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.

• The 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 the AIUA is required for all insurers authorized to write fire and extended coverage insurance in Alabama, with the Board of Directors selected from its membership.

• The AIUA uses independent actuaries to determine rates that cover operating expenses, routine claims, and reinsurance costs, which are reviewed and approved by the Alabama Department of Insurance.