HB615 • 2026

Catastrophe savings accounts, required to be held in Alabama banks, credit unions, or veterans financial institutions and approved by the Commissioner of Insurance

Labor

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Robbins
Last action: 2026-03-12
Official status: Pending Committee Action in House of Origin
Effective date: Not listed

Plain English Breakdown

The bill text does not explicitly mention that the Commissioner of Insurance must approve the accounts, but it implies oversight through regulation.

Catastrophe Savings Accounts Must Be Held in Alabama Financial Institutions

This bill requires catastrophe savings accounts to be held in banks, credit unions, or veterans financial institutions located in Alabama and approved by the Commissioner of Insurance.

What This Bill Does

Requires catastrophe savings accounts to be kept in Alabama-based banks, credit unions, or veteran-related financial institutions.

Who It Names or Affects

Insurance policyholders who have residential property in Alabama.
Alabama-based banks, credit unions, and veterans financial institutions.
The Commissioner of Insurance in Alabama.

Terms To Know

Catastrophe Savings Account: A special savings account used to cover insurance deductibles and other expenses related to windstorm damage for residential property owners.
Qualified Catastrophe Expenses: Expenses covered by a catastrophe savings account, including insurance deductibles, costs of FORTIFIED endorsements, and mitigation actions against windstorm damage.

Limits and Unknowns

The bill does not specify what happens if an existing out-of-state catastrophe savings account needs to be moved.
It is unclear how this will affect residents who do not have access to approved financial institutions in Alabama.
There are no details on the penalties for non-compliance with these requirements.

Bill History

2026-03-12 House
Pending Committee Action in House of Origin
2026-03-12 House
Read for the first time and referred to the House Committee on Financial Services

Official Summary Text

Catastrophe savings accounts, required to be held in Alabama banks, credit unions, or veterans financial institutions and approved by the Commissioner of Insurance

Current Bill Text

Read the full stored bill text

HB615 INTRODUCED
Page 0
HB615
KHI3LA5-1
By Representative Robbins
RFD: Financial Services
First Read: 12-Mar-26
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KHI3LA5-1 03/11/2026 KMS (L)cr 2026-1301
Page 1
First Read: 12-Mar-26
SYNOPSIS:
Under existing law, catastrophe savings accounts
cover insurance deductibles and other uninsured
portions of risks of loss from windstorm events to
owners of residential property.
This bill would require catastrophe savings
accounts to be held in Alabama banks, credit unions, or
veterans financial institutions.
A BILL
TO BE ENTITLED
AN ACT
Relating to catastrophe savings accounts; to amend
Section 40-18-310, as amended by Act 2026-100, 2026 Regular
Session, Code of Alabama 1975; to require accounts to be held
in Alabama banks, credit unions, or veterans financial
institutions.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-18-310, as amended by Act
2026-100, 2026 Regular Session, Code of Alabama 1975, is
amended to read as follows:
"§40-18-310
As used in this article, the following terms shall have
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HB615 INTRODUCED
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As used in this article, the following terms shall have
the following meanings:
(1) CATASTROPHE SAVINGS ACCOUNT. A regular savings
account or money market account , established in a bank or
credit union with a brick and mortar location in Alabama or a
veteran-related financial institution, by an insurance
policyholder who is a state income taxpayer for residential
property in this state to cover: (i) an insurance deductible
under an insurance policy for one residential property owned
by a taxpayer that covers hurricane, rising floodwaters, or
other catastrophic windstorm event damage or by an individual
to cover self-insured losses for the taxpayer's residential
property from a hurricane, rising floodwaters, or other
catastrophic windstorm event; (ii) the annual cost of a
FORTIFIED endorsement to supplement an insurance policy; or
(iii) the cost of mitigation actions that would reduce the
risk of hurricane, rising floodwaters, or other catastrophic
windstorm event damage, including, but not limited to, costs
associated with reroofing and obtaining evaluation services to
qualify for a FORTIFIED designation, collectively, "Qualified
Catastrophe Expenses." The account must be labeled as a
catastrophe savings account in order to qualify as a
catastrophe savings account as defined in this article. A
taxpayer may establish only one catastrophe savings account
and shall specify that the purpose of the account is to cover
the Qualified Catastrophe Expenses.
(2) WINDSTORM EVENT. Windstorms, cyclones, hurricanes,
tornadoes, high winds, and hail, and similar perils not
normally among those covered under most property casualty
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HB615 INTRODUCED
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normally among those covered under most property casualty
insurance policies but obtainable through the purchase of
wind, wind and hail, storm or windstorm coverage, or all."
Section 2. This act applies to tax years beginning on
or after January 1, 2027.
Section 3. This act shall become effective on October
1, 2026.
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