HJR220ENROLLED
Page 0
HJR220
HGW4G88-2
By Representatives Holk-Jones, Givens, Fidler, Shirey,
Pringle, Brown, Stringer, Wilcox, Drummond, Clarke, Bracy,
Jones, Baker
RFD: Rules
First Read: 08-Apr-25
1
2
3
4
5
6
7 HJR220 Enrolled
Page 1
First Read: 08-Apr-25
Enrolled, An Act,
EXPRESSING THE WILL OF THE ALABAMA LEGISLATURE REGARDING THE
STATE OF COMMERCIAL PROPERTY INSURANCE IN COASTAL ALABAMA.
WHEREAS, the economic vitality of Alabama's coastal
region remains a cornerstone of the state's financial
health, including attracting more than 11 million visitors
to the state annually, creating nearly 100,000 related jobs
for our citizens, and generating almost $10 billion annually
in tourism-related spending; and
WHEREAS, the Alabama Coastal Commercial Insurance
Joint Interim Study Commission has underscored the mounting
instability in the availability and affordability of
commercial property insurance in coastal areas, placing at
risk the resilience of businesses, the integrity of the
tourism industry, and the economic security of the state as
a whole; and
WHEREAS, historical and modeled data demonstrate that
the financial exposure of the state to catastrophic weather
events is neither speculative nor abstract, but a
measurable, recurring, and intensifying fiscal reality, with
potential tax revenue losses exceeding $400,000,000 over a
two-year, post-storm recovery period; and
WHEREAS, the Legislature acknowledges the necessity
of continuing exploration and discussion regarding a range
of potential state-level interventions, including, but not
limited to, a state-supported reinsurance or risk pooling
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28 HJR220 Enrolled
Page 2
limited to, a state-supported reinsurance or risk pooling
program that could include evaluating mechanisms to
stabilize the coastal commercial insurance market through
state-backed reinsurance, risk-sharing agreements, or
catastrophe bonds to distribute financial exposure more
broadly across the insurance industry; and
WHEREAS, the Legislature and Governor should examine
targeted tax credits or grants for businesses that invest in
wind-resistant construction, fortified roofing, flood
mitigation insurance, and other forms of risk mitigation to
reduce overall insurance claims and premium volatility; and
WHEREAS, the Legislature may request that the
Governor and the Alabama Department of Insurance review
insurance industry practices related to rate setting, claim
denials and policy nonrenewals within the coastal zones, and
help further ensure transparency and accountability in
underwriting decisions that impact Alabama businesses; and
WHEREAS, the Legislature and Governor should assess
the feasibility of broadening the coverage scope of the
Alabama Insurance Underwriting Association's Wind Pool to
try to enhance affordability and help further streamline
claims processing for commercial properties; and
WHEREAS, the State of Alabama should further explore
using state-administered contingency funds or loan programs
to aid businesses in post-disaster recovery, which would
help prevent prolonged economic stagnation and massive tax
revenue losses; and
WHEREAS, the Legislature should consider
strengthening construction standards and zoning policies in
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56 HJR220 Enrolled
Page 3
strengthening construction standards and zoning policies in
high-risk areas to promote resilient development and help
minimize future long-term insurance risks; and
WHEREAS, the Governor should extend the scope and
work of the Alabama Coastal Commercial Insurance Joint
Interim Study Commission to help refine proposed solutions,
further engage stakeholders, and provide annual assessments
of market conditions and economic impact; now therefore,
BE IT RESOLVED BY THE LEGISLATURE OF ALABAMA, BOTH
HOUSES THEREOF CONCURRING, That the findings of the Alabama
Coastal Commercial Insurance Joint Interim Study Commission
are acknowledged with great interest, and that this body
remains committed to fostering an environment conducive to
further study, stakeholder engagement, and prudent policy
development aimed at securing the long-term economic and
insurance stability of coastal Alabama.
BE IT FURTHER RESOLVED, That a copy of this
resolution be provided to the Governor, the Alabama
Department of Insurance, and other relevant stakeholders as
a formal expression of this body's unwavering attention to
this matter.
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76 HJR220 Enrolled
Page 4
this matter.
________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in
and was passed by the House 10-Apr-25.
John Treadwell
Clerk
Senate 24-Apr-25 Adopted
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109