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 establishes the Alabama Coastal Commercial Insurance Joint Interim Study Commission. The commission's purpose is to evaluate the current risk exposure, explore potential relief programs for rising insurance costs, and ensure the sustainability of any proposed solutions.

The commission will consist of various members, including state officials and representatives from the affected regions, and will be co-chaired by the chairs of the Senate Banking and Insurance Committee and the House Insurance Committee. Its responsibilities include analyzing wind coverage pricing in Alabama compared to neighboring 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.