Alabama: Insurance Issues Surface During Special Session on Education

Somehow, the Alabama special session called by Gov. Bob Riley last week to take up only education issues gave some legislators a reason to introduce insurance-related bills.

Sen. Ben Brooks put forth SB 134, which would provide insurance premium credits for building, rebuilding, upgrading, or retrofitting an existing home with weather-resistant improvements. The credits would be determined by the insurance commissioner.

“While the intent of SB 134 is laudable, it would be far better to let the free market make adjustments relative to mitigation incentives,” noted Liz Reynolds, NAMIC Southeast state affairs manager. “The industry has indicated to Senator Brooks a willingness to work with him on this concept, but a special session devoted to the education budget is not the time to accomplish that.”

Another bill of interest that popped up was SB 140, by Sen. Tripp Pittman. It would prohibit cancellation or nonrenewal of a homeowner’s insurance policy without “specific justifiable cause.”

Bills require a two-third vote consideration if they fall outside the governor’s “call” for the special session. SB 134 did receive a favorable committee report and was given a second reading in the Senate, but it is unlikely to move any further. SB 140 is already dead.

NAMIC will follow the Alabama special session and provide resources and assistance on these and other property insurance issues that likely will continue to surface now and in the future.

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

Posted: Tuesday, June 03, 2008 12:00:00 AM. Modified: Tuesday, June 03, 2008 11:26:38 AM.

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