HB401 Alabama 2018 Session

Under existing law, the Alabama Insurance Guaranty Association Act provides a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payments, 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 the protection among insurers

This bill would conform certain provisions of the act relating to the association to the most recent model act, and would define additional terms

This bill would provide for the obligation of the association to pay covered claims before an order of liquidation of an insolvent insurer

This bill would also raise the statutory cap for statutory benefits available for a covered claim from $150,000 to $300,000, and would provide for an aggregate cap

To amend Sections 27-42-3, 27-42-5, 27-42-8, 27-42-11, and 27-42-12, Code of Alabama 1975, relating to the Alabama Insurance Guaranty Association; to conform certain provisions relating to the association to the most recent model act; to define additional terms; to provide for the obligation of the association to pay covered claims before an order of liquidation of an insolvent insurer; to raise the statutory cap for statutory benefits available for a covered claim from $150,000 to $300,000; and to provide for an aggregate cap.