HB723 Alabama 2012 Session

Summary

Primary Sponsor

Yvonne Kennedy

Democrat

Co-Sponsors

James E. BuskeyRandy DavisJamie IsonJim BartonNapoleon Bracy

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

HB723 would offer tax credits to private homeowners insurers who write wind-covered policies in AIUA areas contiguous to the Gulf Coast near Mobile Bay to encourage more coverage.

What This Bill Does

It creates a nonrefundable credit against the Alabama insurance premium tax for private property insurers that issue homeowners policies with wind coverage in zones near the Gulf and Mobile Bay where the property is insured under the Alabama Insurance Underwriting Association. The credit amount is 20% of the premium tax for Zone 4 properties and 35% for Zones 1–3. It applies to new policies with an effective date after the act’s effective date and requires the insurer to be licensed in Alabama and provide full property and casualty coverage including wind and hail. The Department of Insurance would monitor the use of credits, and the credit is claimed per structure (not per policy) for eligible premiums.

Who It Affects

• Private property/casualty insurers licensed in Alabama that write wind-covered homeowners policies in AIUA-covered zones near the Gulf Coast; they could claim the tax credits.
• Property owners in the defined coastal counties whose properties are insured under AIUA; they may see more wind-coverage options as insurers are incentivized to write such policies.

Key Provisions

• Tax credits against the insurance premium tax equal to 20% for Zone 4 and 35% for Zones 1-3, for wind coverage on AIUA-insured properties.
• Credits apply only to new policies with effective dates after the act’s effective date and only for properties insured through the AIUA at the time of writing.
• Only licensed Alabama insurers providing full property and casualty coverage (including wind and hail) may claim the credit.
• The insurer must provide information to the Department of Insurance to prove eligibility and that the premiums were not excluded from gross income.
• The credit may be claimed only once per structure, regardless of the number of policies.
• The Department of Insurance will monitor and examine credit usage.
• The act takes effect on the first day of the third month after it is passed and approved or becomes 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