HJR220 Alabama 2025 Session

Summary

Primary Sponsor

Frances Holk-JonesRepresentative

Republican

Session

2025 Regular Session

Title

Coastal Alabama Insurance, expressed

Summary

HJR220 is a nonbinding resolution expressing the Alabama Legislature's plan to study and pursue measures to stabilize and improve coastal commercial property insurance in Coastal Alabama.

What This Bill Does

Directs continued study and engagement on coastal commercial property insurance. It calls for exploring state-level options such as state-backed reinsurance, risk pooling, or catastrophe bonds, and for offering tax credits or grants to incentivize risk mitigation. It directs the Governor and the Alabama Department of Insurance to review rate-setting, claim denials, and nonrenewals in coastal zones to improve transparency. It supports expanding the Wind Pool, using contingency funds or loans for post-disaster recovery, and strengthening building standards and zoning in high-risk areas, with annual market assessments by the study commission.

Who It Affects

• Coastal businesses and property owners: potential changes in insurance availability and affordability, and access to risk-mitigation incentives.
• Insurance industry and state regulators (Governor and Alabama Department of Insurance): subject to reviews and potential policy changes, including rate-setting practices, underwriting transparency, and new risk-sharing mechanisms.

Key Provisions

• Acknowledges findings and commits to continued study, stakeholder engagement, and prudent policy development to support long-term insurance stability in coastal Alabama.
• Explores state-level interventions, including state-backed reinsurance, risk-sharing agreements, or catastrophe bonds to spread financial risk across the industry.
• Consideration of targeted tax credits or grants for wind-resistant construction, fortified roofing, flood mitigation insurance, and other risk-mitigation measures.
• Requests Governor and Alabama Department of Insurance to review rate-setting, claim denials, and policy nonrenewals in coastal zones to improve transparency and accountability.
• Assesses feasibility of broadening the Alabama Insurance Underwriting Association's Wind Pool to improve affordability and streamline claims processing.
• Considers state-administered contingency funds or loan programs to aid post-disaster recovery.
• Considers strengthening construction standards and zoning in high-risk areas to promote resilient development and reduce long-term insurance risks.
• Extends the scope of the Alabama Coastal Commercial Insurance Joint Interim Study Commission for refining proposed solutions, engaging stakeholders, and providing annual market and economic impact assessments.
• Requires copies of the resolution be provided to the Governor, the Alabama Department of Insurance, and other stakeholders.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Resolutions