SB283 Alabama 2018 Session

Summary

Primary Sponsor

Mark Slade Blackwell

Republican

Session

Regular Session 2018

Title

Insurance companies, unsolvenices, Alabama Insurance Guaranty Association Act, provisions conformed to most recent model act, obligation of assoc. to pay covered claims before order of liquidation of insolvent insurer, statutory cap for benefits and aggregate cap provided, Secs. 27-42-3, 27-42-5, 27-42-8, 27-42-11, 27-42-12 am'd.

Description

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.

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Subjects

Insurance