SB230 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Ben H. Brooks
Republican
Co-Sponsors: Trip Pittman Rusty Glover George M. “Marc” Keahey Vivian Davis Figures
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: SB230 creates tax credits for private homeowners insurance carriers that write wind coverage in AIUA areas near Mobile Bay and the Gulf, reducing their premium taxes.
What This Bill Does
It creates a nonrefundable credit against the insurer’s insurance premium tax for wind coverage written in AIUA areas. The credit is 20% for Zone 4 and 35% for Zones 1–3 of the insurance premium tax on premiums written for properties insured for wind through AIUA at the time of writing. The credit applies only to new policies issued after the act’s effective date, only to licensed Alabama insurers, and only once per structure. Insurers must provide information to the Department of Insurance to prove eligibility, and the homeowner’s premium must be at least 12% lower than the Wind Pool Plan premium to qualify.

Who It Affects
Private homeowners insurance carriers licensed in Alabama that write wind coverage in AIUA areas near the Gulf of Mexico and Mobile Bay, who can claim the credit against their premium tax.
Homeowners in Zone 1–4 areas contiguous to the Gulf and Mobile Bay who are insured for wind coverage through the AIUA, who may benefit from lower premiums if insurers pass the tax-credit savings to them.

Key Provisions
Nonrefundable insurance premium tax credits for wind coverage written in AIUA-covered counties near Mobile Bay and the Gulf, with 20% credit for Zone 4 and 35% credit for Zones 1–3.
Credits apply only to policies where the property is insured for wind coverage through the Alabama Insurance Underwriting Association at the time of writing.
Credits are available only to licensed Alabama insurers and may be claimed only once per structure.
Insurers must provide information to the Department of Insurance to prove eligibility and that the premium was not excluded from gross income.
To qualify, the homeowner's premium must be at least 12% lower than the Wind Pool Plan premium.
The Department of Insurance will monitor the use of the credits.
The act applies to new policies issued after the act’s effective date.
The act becomes effective on the 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