HB293 Alabama 2011 Session

Summary

Primary Sponsor

Randy Davis

Republican

Co-Sponsors

Harry ShiverSteve McMillan

Session

Regular Session 2011

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

HB293 would create a tax credit to encourage private homeowners insurers to write wind-coverage policies in Alabama counties adjacent to the Gulf of Mexico and Mobile Bay that are covered by the Alabama Insurance Underwriting Association.

What This Bill Does

It provides a nonrefundable credit against the insurance premium tax for private property insurance carriers that write wind-covered homeowners policies in AIUA-covered areas, with a 20% credit in Zone 4 and 35% in Zones 1-3. The credit applies only to policies where the property is insured for wind coverage through the AIUA at the time of writing. It applies to new policies with an effective date after the act, requires insurers to report to the Department of Insurance, and allows one credit per structure.

Who It Affects

• Private homeowners insurance carriers licensed in Alabama that write wind-coverage policies in areas contiguous to the Gulf of Mexico and Mobile Bay covered by the AIUA; they would be eligible to claim the specified credits against their insurance premium tax.
• Property owners in AIUA-covered counties in Zones 1-4; their access to private wind-coverage options may be influenced by the incentive for insurers to write more policies in these areas.

Key Provisions

• Creates an insurance premium tax credit for private property/casualty insurers that provide full coverage including wind/hail to properties in AIUA-defined areas, where the property is insured for wind coverage by AIUA at the time of writing.
• Credit amounts: 20% of the insurance premium tax otherwise due for Zone 4, and 35% of the tax otherwise due for Zones 1-3, for the taxable year.
• Credit is nonrefundable, can be claimed only once per structure, and applies only to new policies with an effective date after the act.
• Insurers must provide information to the Department of Insurance to verify eligibility and that the premium qualifies for the credit; the department will monitor credit use.
• Areas and expansions referenced are those defined in Section 27-1-24, with possible expansions under Section 27-1-27, Alabama Code.
• The act becomes effective on the first day of the third month after passage and approval by the Governor (or as otherwise law).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance