SB198 Alabama 2010 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsors

Trip PittmanRusty Glover

Session

Regular Session 2010

Title

Homeowners insurance, counties contiguous to Mobile Bay and Gulf of Mexico, credits against insurance premium taxes for private property carriers who write coverage in Zones 1,2,3, and 4, geographic areas covered by Alabama Insurance Underwriting Association

Summary

The bill would create nonrefundable tax credits for private homeowners insurers to encourage wind coverage in Alabama’s coastal areas by lowering the insurance premium tax for policies written in Zone 1-4 in areas near Mobile Bay and the Gulf of Mexico.

What This Bill Does

It provides a nonrefundable credit against the Alabama insurance premium tax for private property insurers who write wind coverage on homeowners policies in counties contiguous to the Gulf of Mexico and Mobile Bay, only if the property is insured under the Alabama Insurance Underwriting Association at the time of writing. The credit amounts are 20% of the tax in Zone 4 and 35% of the tax in Zones 1-3. The credit can be claimed only once per structure, and only by insurers licensed in Alabama; insurers must provide information to the Department of Insurance to prove eligibility and that premiums were not excluded from gross income. The act applies to new policies with effective dates after the act’s effective date, and the Department will monitor credit use; the effective date is the first day of the third month after passage and governor approval.

Who It Affects

• Licensed Alabama insurance carriers that write homeowners policies with wind coverage in the defined coastal zones and meet the condition that the property is insured under the Alabama Insurance Underwriting Association at the time of writing.
• Property owners in counties contiguous to the Gulf of Mexico and Mobile Bay who obtain wind-coverage homeowners policies from those insurers and have their properties insured under the Alabama Insurance Underwriting Association at the time of policy writing.

Key Provisions

• Creates a nonrefundable credit against the insurance premium tax for wind coverage in zones defined by the act: 20% for Zone 4 and 35% for Zones 1-3, limited to policies where the property is insured under the Alabama Insurance Underwriting Association at the time of writing.
• Only licensed insurers in Alabama may claim the credit; insurers must provide information to the Department of Insurance to verify eligibility and that premiums were included in gross income for the tax year.
• Credit may be claimed only once per structure per taxable year; applies to new policies issued with an effective date after the act’s effective date.
• The Department of Insurance will monitor and examine the use of the credit; the act becomes effective on the first day of the third month after passage and governor approval, and applies to policies in areas defined by the Alabama Insurance Underwriting Association.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance