SB573 Alabama 2010 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsor

Trip Pittman

Session

Regular Session 2010

Title

Alabama Insurance Underwriting Association, reference to beach pool prohibited, Sec. 27-1-24 am'd.

Summary

SB573 would ban the term 'beach pool' in Alabama Insurance Underwriting Association materials and set out membership, governance, and financial rules for the association.

What This Bill Does

The bill makes legislative findings about the association’s geographic scope and branding, and then prohibits the association from using the term 'beach pool' in any document or electronic material, with 90 days to remove existing references. It amends the insurance-membership rule so every insurer writing fire and extended coverage in Alabama must be a member of the association, and if membership ends, the insurer remains liable for contracts made during membership; new insurers after 2008 must join within a specified period. It also defines the Beach Wind Pool Area, outlines how the association’s operation and financials are managed (including carryover of unexpended surplus and use of funds), and grants certain powers (like issuing bonds). The act sets the effective date and requires plan documents to be available for public inspection.

Who It Affects

• Insurers authorized to write fire and extended coverage in Alabama: must be and remain members of the Alabama Insurance Underwriting Association; if they withdraw, they stay liable for contracts made during membership.
• The Alabama Insurance Underwriting Association and its stakeholders (including policyholders in the defined Beach Wind Pool Area): must stop using the term 'beach pool' in all materials, manage finances with surplus appropriately, and follow the revised governance and operation requirements.

Key Provisions

• The bill adds legislative findings that the association serves a broad geographic area beyond beach properties and that the term 'beach pool' is misleading for branding purposes.
• The association may not use the term 'beach pool' in any document or electronic material, including letterhead, emails, websites, domain names, or policy documents; the association has 90 days to redact any existing references.
• Section 27-1-24 is amended to require all insurers authorized to write fire and extended coverage in Alabama to be and remain members of the association; a withdrawing insurer remains liable for pre-existing contracts, and new insurers after 2008 must join by the following November 1.
• The plan of operation, articles of agreement, and rules and procedures in effect from January 1, 2008 continue, with revisions approved by the board and commissioner; copies must be kept for public inspection.
• The association may carry over any unexpended surplus to future years and must keep funds within the association (not lapse or be transferred to the General Fund); interest or investment earnings go to the association and funds are used to pay expenses, claims, and reinsurance costs.
• The association has authority to issue bonds, surplus notes, or other debentures and to solicit and accept goods, loans, and grants.
• The Beach Wind Pool Area is defined as Gulf Front, Beach, and Seacoast areas of Baldwin and Mobile Counties as designated by the Insurance Services Office.
• Effective date: the act becomes effective on the first day of the sixth month after passage and Governor approval (or when it becomes law otherwise).

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

Subjects

Alabama Insurance Underwriting Association