SB396 Alabama 2011 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Co-Sponsor

Trip Pittman

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

SB396 would give private homeowners insurers a tax credit for writing wind-coverage policies in Gulf of Mexico and Mobile Bay counties where properties are AIUA-insured, with a larger credit in Zones 1–3 than in Zone 4.

What This Bill Does

It creates nonrefundable insurance premium tax credits for private insurers that write wind-inclusive homeowners policies in areas covered by the Alabama Insurance Underwriting Association (AIUA). The credit is 35% of the premium tax for policies in Zones 1–3 and 20% for Zone 4, applied to new policies issued after the act’s effective date. The credit requires the insurer to provide full property and casualty coverage (including wind and hail), be licensed in Alabama, verify eligibility with the Department of Insurance, and limit the credit to one per structure; the act also directs monitoring of credit use and applies only to policies issued after the act becomes law.

Who It Affects

• Private homeowners insurance carriers licensed in Alabama that write wind-inclusive policies in AIUA-covered areas may receive a tax credit against their insurance premium tax.
• Property owners in counties contiguous to the Gulf of Mexico and Mobile Bay may gain more private options for wind-covered homeowners policies as insurers are incentivized to write in these zones.

Key Provisions

• Credit amount: 35% of the insurance premium tax for policies in Zones 1, 2, and 3; 20% for policies in Zone 4.
• Eligible policies: private insurers offering full property and casualty coverage to properties in AIUA-defined areas, including wind and hail.
• Geographic scope: areas defined as contiguous to the Gulf of Mexico and Mobile Bay and covered by AIUA (including expansions under AIUA rules).
• Eligibility requirements: insurer must be licensed/authorized in Alabama; must provide information to the Department of Insurance proving eligibility and that the premium was included in gross income.
• Credit limit: one credit per structure, regardless of the number of policies written.
• Monitoring: the Department of Insurance will monitor and examine the use of the credits.
• Effective date: applies to all new policies issued with an effective date after the act’s effective date (first day of the third month after passage).

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