The bill amends Section 32-7-35 of the Code of Alabama 1975 to establish the Alabama Automobile Insurance Plan, which aims to equitably distribute the costs of high-risk motor vehicle liability policies among insurance companies. The Commissioner of the Insurance Department is tasked with approving this plan, which will be administered by a governing committee composed of members approved by the commissioner. The bill also allows for the issuance of motor vehicle liability policies in the name of the Alabama Automobile Insurance Plan, ensuring that these policies are recognized as valid insurance under state law.

Key changes include the insertion of provisions that outline the plan's administration, the role of service providers in issuing policies, and the appeal process for applicants and affected insurance companies. Additionally, the bill mandates that the governing committee file an annual audited financial report with the commissioner and allows the commissioner to establish necessary regulations for the plan's implementation. The bill deletes previous language that referred to multiple plans and the inability of applicants to procure policies through ordinary methods, streamlining the process for high-risk individuals seeking insurance. The act is set to take effect on October 1, 2024.

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