SB298 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, replacing the existing Alabama Insurance Underwriting Association.

• Establishes a 13-member Board of Directors consisting of the State Director of Risk Management and 12 appointed members representing insurers, insurance producers, and coastal business leaders, with at least three business members from coastal counties.

• 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; provides for post-loss assessments on policyholders up to a rate reduction amount and on insurers for excess losses.

• Exempts the authority from insurance premium taxes, license and privilege taxes, corporate income tax, and other state taxation; declares authority debt and bonds as obligations of the authority only, not the state.

• 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 gubernatorial approval.