Code of Alabama - Title 27: Insurance - Section 27-42-2 - Purpose of chapter

Section 27-42-2 - Purpose of chapter.

The purpose of this chapter is to provide a mechanism for the payment of covered claims under certain insurance policies, to avoid excessive delay in payments and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies and to provide an association to assess the cost of such protection among insurers.

(Acts 1980, No. 80-806, p. 1639, §2.)

Last modified: May 3, 2021