HB470 Alabama 2012 Session

Summary

Primary Sponsor

Randy Davis

Republican

Co-Sponsors

Harry ShiverSteve McMillanDavid Sessions

Session

Regular Session 2012

Title

Insurance, domestic insurer eligible for $2,500,000 economic incentives, exceptions

Summary

HB470 creates a state incentive program offering up to $2.5 million to Alabama domestic insurers who remove wind policies from AIUA and/or commit to acquiring AIUA policies under specific targets and zone requirements.

What This Bill Does

It allows a $2.5 million incentive for any Alabama domestic insurer that signs an agreement to remove residential wind policies from the Alabama Insurance Underwriters Association (AIUA). It also provides for an additional $2.5 million incentive for insurers to acquire AIUA policies within 12 months, with different targets based on asset size (1,000 policies for those with over $100 million in assets, or 300 policies for those with under $100 million), and requires at least 15% of acquired policies to come from each of AIUA's four zones. If the policy targets aren’t met, the insurer must repay part or all of the funds. The Commissioner of Insurance must report on the program’s progress to the Governor and Legislature 30 days before the 2013 session, and the act has a specified effective date.

Who It Affects

• Domestic insurers with assets over $100 million: eligible for the wind-policy removal incentive and, if they sign to acquire at least 1,000 AIUA policies in 12 months, for the additional incentive, with zone-diversity and repayment requirements.
• Domestic insurers with assets under $100 million: eligible for the wind-policy removal incentive and, if they sign to acquire at least 300 AIUA policies in 12 months, for the additional incentive, with zone-diversity and repayment requirements.

Key Provisions

• Section 1: Any domestic insurer who signs an agreement to remove residential wind policies from AIUA shall be eligible for $2,500,000 in economic incentives.
• Section 2: Domestic insurers with assets over $100 million are eligible for a one-time $2,500,000 if they sign an agreement to acquire at least 1,000 AIUA policies within 12 months, with at least 15% of policies from each AIUA zone; repayment rules apply if targets are not met.
• Section 3: Domestic insurers with assets under $100 million are eligible for a one-time $2,500,000 if they sign an agreement to acquire at least 300 AIUA policies within 12 months, with at least 15% of policies from each AIUA zone; repayment rules apply if targets are not met.
• Section 4: The Commissioner of Insurance must report to the Governor and Legislature 30 days before the 2013 legislative session on the program’s success and possible future actions, including expansion or extension.
• Section 5: The act becomes effective 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