Alabama House Bill HB102

Alabama 2022 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22
• Engrossed: 2/16/22
• Refer: 2/17/22
• Enrolled: 3/9/22
• Chaptered: 3/10/22
• Passed: 3/10/22

Caption

Insurance Risk Management and Insurance Center, Insurance Dept. to establish at state university and support, fund estab., approp. for center, Sec. 27-2-39 am'd.

Impact

The enactment of HB102 will amend existing statutes, primarily Section 27-2-39 of the Code of Alabama 1975, to facilitate the operational framework for the newly created center. This will include the allocation of financial resources specifically for its operation, which proponents assert will lead to better management and understanding of insurance risks across Alabama. The bill aims to ensure that the center has a stable source of funding, which is expected to foster various initiatives that enhance the efficiency of the state's insurance operations and contribute to improved public understanding of these issues.

Summary

House Bill 102 establishes the Center for Risk and Insurance Research associated with a state university in Alabama. This bill is designed to enhance research, education, and outreach related to insurance and risk management issues within the state. Central to this initiative is the creation of a dedicated fund, known as the Center for Risk and Insurance Research Fund, which will be supported through a portion of fees, licenses, and taxes collected by the Commissioner of Insurance. The intentions behind the bill are to provide a structured environment for advancing knowledge and practices in these critical areas, ultimately benefiting both the industry and the community.

Sentiment

The sentiment surrounding HB102 has been largely positive within legislative discussions, with strong support expressed by representatives advocating for advancements in the insurance sector. There is recognition of the importance of fostering a research-oriented approach to better prepare industry professionals for the challenges of risk management. However, some voices have raised concerns regarding the sustainability of funding and the overall operational effectiveness of the center, suggesting that careful oversight will be necessary to ensure that the goals of the bill are met.

Contention

Notable points of contention include discussions around the funding mechanisms outlined in the bill. While supporters back the allocation of funds derived from various insurance-related revenues, critics have questioned the reliance on these funds to sustain the center over the long term. Furthermore, there are discussions on how effectively the center's initiatives will translate into tangible benefits for the insurance industry and the general public. The bill's proponents and opponents alike recognize the importance of risk management in a changing landscape, but there remains debate about the best strategies to effectively implement these provisions.