The Alabama Municipal Insurance Corporation cancelled the City of Prichard’s municipal insurance policy, citing a high number of claims and the previous mayoral administration’s difficulty providing information about those claims. Her city attorney laid out the numbers that led to that conclusion: over the last five years, AMIC paid approximately $1.6 million in claims against Prichard. What No Municipal Insurance Actually MeansAlabama law provides cities with a degree of immunity protection. When a city is insured, residents who are injured by city equipment, city vehicles, or city employee actions have a straightforward path to compensation through the insurer. That is the municipal insurance market’s equivalent of a policy non-renewal — with residents on the receiving end.