Bill > SB11

This bill establishes the Alaska Flood Authority, a nonprofit organization composed of all property insurers licensed in the state, to increase the availability of flood insurance in Alaska. The authority will be governed by a seven-member board representing insurers, consumers, banking, and housing finance, and will create a state flood insurance plan that mirrors the National Flood Insurance Program's coverage but with maximum coverage limits of $1 million for residential properties and $2 million for commercial properties. The plan will be mandatory for insurers to offer, and they cannot refuse coverage to eligible applicants. Funding for the authority will come from member dues and assessments, with the potential for up to $5 million in state backup funding if needed. The bill broadly defines "flood" to include various water-related inundation scenarios, such as overflow, rapid runoff, snow melt, atmospheric rivers, and mudflow. The authority must submit annual reports to state and federal representatives, analyze the program's effectiveness, and compare it to the existing National Flood Insurance Program. The legislation also creates an Alaska Flood Insurance Fund in the state treasury to manage premiums, dues, and assessments, with the fund's balance potentially being appropriated to operate the authority and insurance program. The bill is set to take effect on July 1, 2026, with provisions for transitional planning and implementation.

Business and Industry

https://www.akleg.gov/basis/Bill/Detail/34?Root=SB11