- Alabama Coastal Insurance Reform Act of 2014 Expands Insurance Premium Tax Credit Zones, Sets $50,000 Limit
- June 17, 2014
- Law Firm: Colodny Fass P.A. - Fort Lauderdale Office
In Bulletin 2014-02 issued today, June 11, 2014, Alabama Insurance Commissioner Jim Ridling advised all authorized property and casualty insurers that revisions enacted this year to Alabama Code Section 27-1-24-1 become effective on July 1, 2014. As amended, the law is now known as the "Alabama Coastal Insurance Reform Act of 2014."
Under existing Alabama law, insurance premium tax credits are afforded to private property insurance carriers that write certain homeowners insurance policies inclusive of wind coverage in Alabama counties contiguous to the Gulf of Mexico and Mobile Bay.
The new law expands the number of zones eligible for the premium tax credit, but restricts the amount of all tax credits in any tax year that may be claimed by insurance carriers to $50,000.
It also deletes the requirement that an insurance carrier must provide a homeowner with a premium payment that is (at a minimum) 12 percent less than the premium amount paid by the homeowner under the Alabama Wind Pool Plan to qualify for the credit.
Of note, insurers meeting all statutory criteria for homeowners policies that want to utilize the credit must apply for it electronically.