The Alabama Legislature is considering a bill that would dole out up to $2.5 million to private insurance companies that write policies for coastal properties.
The Mobile Press-Register reports that the measure would shrink the size of the Alabama Insurance Underwriters Association – the state’s insurer of last resort – and increase the number of properties covered by private companies.
Under the proposal, companies would have to write policies for up to 1,000 properties now covered by the association to get the state money. Insurers that fall short of that goal but get more than halfway there could receive $1.25 million.
Rep. Randy Davis, a Republican from Daphne sponsoring the legislation, said his preference is the money would be taken from the state’s General Fund.
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