Code of Alabama - Title 27: Insurance - Chapter 44 - Life and Disability Insurance Guaranty Association

• Section 27-44-1 Short title
  This chapter shall be known and may be cited as the "Alabama Life and Disability Insurance Guaranty Association Act."
• Section 27-44-2 Purpose of chapter
  (a) The purpose of this chapter is to protect, subject to certain limitations, the persons specified in Section 27-44-3(a) against failure in the performance of...
• Section 27-44-3 Scope of chapter
  (a) This chapter shall provide coverage for the policies and contracts specified in subsection (b) as follows: (1) To persons who, regardless of where they...
• Section 27-44-4 Construction of chapter
  This chapter shall be liberally construed to effect the purpose under Section 27-44-2 which shall constitute an aid and guide to interpretation.
• Section 27-44-5 Definitions
  As used in this chapter, the following terms shall have the following meanings, respectively, unless the context clearly indicates otherwise: (1) ACCOUNT. Either of the...
• Section 27-44-6 Creation of association; membership; accounts; supervision
  (a) There is created a nonprofit unincorporated legal entity to be known as the Alabama Life and Disability Insurance Guaranty Association. All member insurers shall...
• Section 27-44-7 Board of directors; selection of members; vacancies; organizational meeting; reimbursement for expenses
  (a) The board of directors of the association shall consist of not less than five nor more than nine member insurers serving terms as established...
• Section 27-44-8 Powers and duties of association
  (a) If a member insurer is an impaired insurer, the association may, in its discretion and subject to any conditions imposed by the association that...
• Section 27-44-9 Assessments
  (a) For the purpose of providing the funds necessary to carry out the powers and duties of the association, the board of directors shall assess...
• Section 27-44-10 Submission of plan of operation and amendments; promulgation of rules in absence of plan
  (a)(1) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and...
• Section 27-44-11 Duties and powers of commissioner; appeal and review; notification
  In addition to the duties and powers enumerated elsewhere in this chapter: (1) The commissioner shall: a. Upon request of the board of directors, provide...
• Section 27-44-12 Duties of commissioner and board with regard to detection and prevention of insolvencies or impairment
  To aid in the detection and prevention of insurer insolvencies or impairment: (1) It shall be the duty of the commissioner: a. To notify the...
• Section 27-44-13 Credits for assessments paid
  (a) A member insurer may offset against its premium tax liability to this state an assessment described in Section 27-44-9(h) to the extent of 20...
• Section 27-44-14 Liability of unpaid assessments; records of negotiations and meetings; association deemed creditor of impaired or insolvent insurer; judicial distribution of ownership rights of insolvent insurer; recovery by receiver of certain distributions from controlling affiliates
  (a) Nothing in this chapter shall be construed to reduce the liability for unpaid assessments of the insureds on an impaired or insolvent insurer operating...
• Section 27-44-15 Examination and regulation of association; annual report
  The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit to the commissioner, not later than May...
• Section 27-44-16 Tax exemptions
  The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied...
• Section 27-44-17 Immunity under chapter
  There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer or its...
• Section 27-44-18 Stay of proceedings; reopening default judgments
  All proceedings in which the insolvent insurer is a party in any court in this state shall be stayed 180 days from the date an...
• Section 27-44-20 Association, policyholders, beneficiaries, and insureds to have preferred creditor status
  Upon the issuance of a proper court order placing a domestic insurer in receivership or placing a foreign insurer in ancillary receivership for rehabilitation or...
• Section 27-44-21 Immediate access of associations in this and other states to assets of insolvent insurer; application to court; contents of proposal; notice
  (a) Within 120 days of a final determination of insolvency of an insurance company by a court of competent jurisdiction the receiver shall make application...

Last modified: May 3, 2021