The bill amends Section 32-7-35 of the Code of Alabama 1975 to establish the Alabama Automobile Insurance Plan. This plan is designed to equitably apportion the costs of high-risk motor vehicle liability policies among insurance companies. The Commissioner of Insurance is tasked with approving the plan after consulting with insurance companies authorized to issue motor vehicle liability policies in Alabama. The plan will be administered by a governing committee approved by the commissioner, and insurance companies in the state are required to subscribe to and participate in the plan.

The bill also allows for the issuance of motor vehicle liability policies in the name of the Alabama Automobile Insurance Plan, which will be recognized as proof of financial responsibility under state law. Applicants for policies or those insured under the plan, as well as affected insurance companies, may appeal decisions of the governing committee to the Commissioner of Insurance. Additionally, the governing committee must file an audited financial report with the commissioner annually, and the commissioner may establish regulations to implement the purposes of this section. The act is set to become effective on October 1, 2024.

Statutes affected:
Introduced: 32-7-35
Enrolled: 32-7-35