HB458 Alabama 2012 Session

Summary

Primary Sponsor

Randy Davis

Republican

Co-Sponsors

Harry ShiverJoe FaustAlan BakerSteve McMillan

Session

Regular Session 2012

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 give insured private homeowners insurers in Alabama a tax credit for writing wind-covered homeowners policies in AIUA areas near Mobile Bay and the Gulf of Mexico.

What This Bill Does

It creates a nonrefundable credit against the insurance premium tax for eligible insurers that issue wind coverage homeowners policies in AIUA-covered counties. The credit is 20% of the premium tax in Zone 4 and 35% in Zones 1–3 for premiums written on properties insured under the AIUA at the time of writing. The credit is available only to Alabama-licensed insurers, applies to new policies with effective dates after the act becomes law, and requires reporting to the Department of Insurance to verify eligibility and that premiums were not excluded from income. Each structure may claim the credit only once, and the Department will monitor how the credits are used.

Who It Affects

• Private homeowners insurance carriers licensed in Alabama that write wind coverage policies in the defined AIUA areas, who may receive a tax credit against their insurance premium tax.
• Property owners in counties contiguous to the Gulf of Mexico and Mobile Bay who have wind coverage policies insured through the Alabama Insurance Underwriting Association, as insurers may be more willing to write policies in these areas due to the credit.

Key Provisions

• Creates a nonrefundable insurance premium tax credit for private homeowners insurers that write wind coverage policies in AIUA-defined areas near the Gulf of Mexico and Mobile Bay, where the property is AIUA-insured at the time of writing.
• Credit amounts: 20% of the premium tax for Zone 4, and 35% of the premium tax for Zones 1–3, for the taxable year.
• Eligibility and administration: available only to insurers licensed in Alabama for property and casualty policies with full coverage including wind and hail; insurers must provide information to the Department of Insurance to prove eligibility and that premiums were not excluded from gross income; the credit is per structure and may be claimed only once per structure.
• Effective date and monitoring: applies to new policies with an effective date after the act’s effective date; the Department of Insurance will monitor and examine the use of the credits.
• Effective date: the act becomes law on the first day of the third month after passage and governor approval.

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