HB321 Summary

• Creates the Alabama Coastal Insurance Authority as a separate state entity to provide affordable windstorm insurance for property owners in counties contiguous to the Gulf of Mexico and Mobile Bay.

• Establishes a 13-member Board of Directors consisting of the State Director of Risk Management, two members recommended by the largest insurers, four other insurer representatives, two insurance producers, and four business leaders selected by the Insurance Commissioner.

• Authorizes the authority to issue bonds with unsold bonds after 60 days required to be purchased by assessable insurers based on their percentage of participation; bonds are obligations of the authority only, not the state.

• Exempts the authority from insurance premium taxes, corporate income tax, and other state and local taxes; requires quarterly and annual financial statement submissions to the Commissioner.

• Repeals Section 27-1-24 (establishing the Alabama Insurance Underwriting Association) effective December 31, 2018, and becomes effective the first day of the third month following passage and approval.