SB390 Alabama 2015 Session

Summary

Primary Sponsor

Bill Hightower

Republican

Session

Regular Session 2015

Title

Insurance Underwriting Association, Board of Directors member selection, newly authorized insurers to become members, Sec. 27-1-24 am'd.

Summary

SB390 overhauls Alabama's Insurance Underwriting Association by mandating membership for all fire and extended coverage insurers, changing when new insurers join, and restructuring how the Board of Directors is chosen and how coverage areas are defined.

What This Bill Does

It requires every insurer authorized to write fire and extended coverage in Alabama to be a member of the Alabama Insurance Underwriting Association. Newly authorized insurers would join on November 1 following their authorization. It creates a detailed new process for selecting the Board of Directors, including representation from insurers by wind market share, insurers chosen by the Commissioner, insurance producers, and coastal business leaders, with terms and diversity considerations. It also requires the plan of operation to specify the association's coverage territories.

Who It Affects

• All insurers authorized to write fire and extended coverage in Alabama must become members of the Alabama Insurance Underwriting Association.
• Newly authorized insurers will join the association on November 1 after their authorization.
• The Board of Directors will include new categories of representatives (largest wind market share insurers in Baldwin and Mobile, insurers selected by the Commissioner, insurance producers, and coastal business leaders) and must follow term and diversity rules.
• The Department of Insurance (via the Commissioner) and the plan of operation will govern and publish the defined coverage territories.

Key Provisions

• Mandatory membership: every insurer authorized to write fire and extended coverage must be a member of the Alabama Insurance Underwriting Association as a condition of continuing authority.
• New insurer joining date: newly authorized insurers shall become members on November 1 following authorization.
• Board of Directors restructuring: the board will include the Director of Risk Management plus six groups (two large wind market share insurers from Baldwin/Mobile, four insurers selected by the Commissioner (with at least one Alabama-domiciled), two insurance producers, and four coastal business leaders) with specified term lengths and diversity considerations.
• Plan of operation requirement: the plan must specify coverage territories and be maintained and approved as required, with territories defined in the plan.

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