The resolution addresses the significant increase in wind insurance costs for coastal commercial and multifamily properties in Alabama over the past two years, which has led to many of these properties becoming underinsured or uninsured. This situation poses a risk to the state's economy, particularly in the aftermath of severe storms. To address these challenges, the resolution proposes the creation of the Alabama Coastal Commercial Insurance Joint Interim Study Commission. This commission will evaluate the current risk exposure, explore potential programs to alleviate insurance costs, and ensure the sustainability of any proposed solutions.

The commission will consist of various members, including state officials and representatives from Baldwin and Mobile counties, and will be co-chaired by the chairs of the Senate and House Insurance Committees. Its responsibilities will include analyzing wind coverage pricing in Alabama compared to surrounding states, assessing the fiscal implications of inadequate coverage, and exploring alternative risk reduction strategies. The commission is required to report its findings and any proposed legislation to the Legislature by January 1, 2025, after which it will be dissolved.