Welcome to Alabama Insurance Underwriting Association!
RATES, RULES AND LOSS SETTLEMENT CHANGES
The mission of Alabama Insurance Underwriting Association (AIUA) is to provide a market for owners of eligible property located in coastal areas of Baldwin and Mobile counties to obtain essential insurance when they are unable to obtain coverage in the private insurance market. AIUA has successfully and efficiently served this mission for more than 45 years and now provides a market to over 30,000 property owners in the area.
At the recommendation of the Alabama Insurance Underwriting Association (AIUA) Board of Directors and in cooperation with Commissioner Jim Ridling and the Alabama Department of Insurance, AIUA is pleased to announce several important changes in our rates and rules.
These new rates and rules will apply to all policies, new and renewal, with an effective date of June 1, 2016 or later. Renewal policyholders who want to take advantage of these changes before their next renewal date may do so, subject to eligibility requirements.
Wind/Hail/Hurricane rates will decrease approximately 11.4%. (‐5% in the Gulf Front Zone and ‐15% in all other zones.) This is the 3rd significant decrease in wind rates in the last 4 years. Fire rates will increase 22.0%. Mobile Home rates will increase by 35%. The cost for Replacement Cost coverage will decrease by approximately 14.5% The over‐all impact of this rate change will be a decrease of approximately 9.5% with 85% of current AIUA policyholders receiving rate decreases ranging from ‐1% to ‐47%. Some policyholders (tenant occupied property, seasonal property, and Mobile Homes) will see their rates increase ranging from 1% ‐ 35%.
There will be NO CHANGE in Commercial rules and rates.
The AIUA will include Replacement Cost Loss Settlement on Dwellings as follows:
On AIUA wind‐only policies, the AIUA will require concurrent loss settlement and concurrent coverage limits with the all other perils (AOP) policy for the insured dwelling. If the AOP policy is RCV, then the AIUA wind‐only policy must be RCV. If the AOP policy is actual cash value (ACV) loss settlement, then the AIUA wind‐only policy must be ACV.
On AIUA fire/extended coverage policies, the AIUA will require RCV loss settlement if the dwelling ACV is equal to or greater than 80% of RCV and the dwelling is otherwise in an insurable condition.
The AIUA will require ACV loss settlement on roofs greater than twelve years old, with exceptions being made for certain roof materials or types.
RCV loss settlement will not be available on Contents, Condominiums, Mobile / Manufactured Homes, or Commercial policies.
RCV loss settlement will be available on seasonal or secondary dwellings, but the rate will be modified using the applicable seasonal/secondary rate modifier.
AIUA policies with RCV loss settlement will include coverage for additional living expense and ordinance or law coverage.
Eligible dwellings will be converted at renewal to RCV loss settlement at the current limit of liability, and limits will be increased to 100% of estimated RCV within three renewal cycles. Policyholders who want to convert to RCV loss settlement before their next renewal date may do so, subject to eligibility requirements.
The AIUA will offer separate contents coverage limits, on ACV loss settlement basis, up to 50% of the dwelling coverage limit, not to exceed $250,000.
The AIUA will retain existing fire/extended coverage policies, but all new business with an effective date on or after January 01, 2017 will be wind/hail/hurricane only policies.
Please refer to your AIUA Dwelling Policy Program Manual for details.
Producer meetings were held in June & July 2016 to review the changes outlined above. You will find a copy of the meeting presentation below.
When claims arise they need to be reported to AIUA promptly. To report a claim:
- Fill out our on-line claim form
- Call toll free at 1-866-780-2482
- Fax our claim form to 866-728-1783
- Email our claim form to email@example.com
Temporary repairs need to be made to prevent further damage. Document these repairs with photos if possible. Special attention should be given to salvage. You should keep all damaged property until it has been inspected by an adjuster.
Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or who knowingly presents false information in an application for insurance is guilty of a crime and may be subject to restitution fines or confinement in prison, or any combination thereof.
Mobile Home Mortgage Closing Binders
Effective October 27, 2015, binders for Mobile Homes must be “pre-approved” by AIUA. Producers should contact AIUA and describe circumstances before submission will be authorized. To qualify for a mortgage closing binder, mobile homes must be properly tied down at the insured location with certified manufactured housing commission decal affixed to the mobile home and owner occupied.
Without exception, all checks submitted to AIUA are deposited the same day as received. Under no circumstances will a check be 'held' from same day's deposit.
Applications for AIUA Producer Access Authorization:
Currently, over 1,100 producers and over 350 agencies are authorized to access the AIUA market. AIUA believes this number of authorized producers is a sufficient number. Therefore, effective immediately, no new applications for authorization will be accepted. If an existing authorized agency wishes to add a new producer to their existing Producer Access Agreement, AIUA will accept the change to the existing agreement. If an existing authorized producer wishes to sell or transfer their existing AIUA book to an existing authorized producer, AIUA will accept the transfer. Any request for a new agency or new producer, not affiliated with a currently authorized agency/producer, will be rejected.