The resolution acknowledges the significant increase in wind insurance costs for coastal commercial and multifamily properties in Alabama over the past two years, which has led to these properties being underinsured or uninsured. This poses a risk to Alabama's economy in the event of a significant storm. The resolution proposes the creation of the Alabama Coastal Commercial Insurance Joint Interim Study Commission to evaluate the current risk exposure and explore potential programs to provide relief from the increasing insurance costs while ensuring the sustainability of such programs.
The commission will be composed of various members, including state officials, legislators, and a representative from the University of Alabama's Center for Risk and Insurance Research. The commission's duties include reviewing the availability of insurance and programs for coastal properties, comparing Alabama's wind coverage with surrounding states, analyzing the fiscal impact of inadequate wind coverage, and reviewing alternatives to wind coverage. The commission must report its findings and any proposed legislation to the Legislature by January 1, 2025, after which it will be dissolved. Members of the commission will receive compensation for their participation according to the rules set out in the resolution.