Section 27-44-1 – Short Title.
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.” (Acts 1982, No. 82-561, p. 922, §1.)
Section 27-44-10 – Submission of Plan of Operation and Amendments; Promulgation of Rules in Absence of Plan.
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 equitable administration of the association. The plan of operation and any amendments thereto shall […]
Section 27-44-11 – Duties and Powers of Commissioner; Appeal and Review; Notification.
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 the association with a statement of the premiums in the appropriate states for each member insurer. b. When an […]
Section 27-44-12 – Duties of Commissioner and Board With Regard to Detection and Prevention of Insolvencies or Impairment.
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 commissioners of those states, territories of the United States and the District of […]
Section 27-44-13 – Credits for Assessments Paid.
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 percent of the amount of such assessment for each of the five calendar years following the year in which such assessment was paid. (b) […]
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.
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 […]
Section 27-44-15 – Examination and Regulation of Association; Annual Report.
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 1 of each year, a financial report for the preceding calendar year in a form approved by the commissioner and a […]
Section 27-44-16 – Tax Exemptions.
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 on real or personal property. (Acts 1982, No. 82-561, p. 922, §16.)
Section 27-44-17 – Immunity Under Chapter.
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 agents or employees, the association or its agents or employees, members of the board of directors, or the commissioner or his representatives, for any action […]
Section 27-44-18 – Stay of Proceedings; Reopening Default Judgments.
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 order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the association on any matters germane to its […]
Section 27-44-2 – Purpose of Chapter.
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 contractual obligations, under life and disability insurance policies and annuity contracts specified in Section 27-44-3(b), because of the impairment or insolvency of the member insurer […]
Section 27-44-20 – Association, Policyholders, Beneficiaries, and Insureds to Have Preferred Creditor Status.
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 liquidation, all policyholders, beneficiaries, and insureds of such insolvent insurer, with respect to claims arising from and within […]
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.
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 to the said court for approval of […]
Section 27-44-3 – Scope of Chapter.
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 reside (except for non-resident certificate holders under group policies or contracts), are the beneficiaries, assignees, or payees of the persons covered under subdivision (2). (2) […]
Section 27-44-4 – Construction of Chapter.
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. (Acts 1982, No. 82-561, p. 922, §4.)
Section 27-44-5 – Definitions.
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 three accounts created under Section 27-44-6. (2) ASSOCIATION. The Alabama Life and Disability Insurance Guaranty Association created under Section 27-44-6. (3) AUTHORIZED ASSESSMENT or the term AUTHORIZED […]
Section 27-44-6 – Creation of Association; Membership; Accounts; Supervision.
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 be and remain members of the association as a condition of their authority to transact insurance in this state. The association shall […]
Section 27-44-7 – Board of Directors; Selection of Members; Vacancies; Organizational Meeting; Reimbursement for Expenses.
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 in the plan of operation. At all times, at least one member of the board shall […]
Section 27-44-8 – Powers and Duties of Association.
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 do not impair the contractual obligations of the impaired insurer, and that are approved by the commissioner: (1) Guarantee or reinsure, or cause […]
Section 27-44-9 – Assessments.
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 the member insurers, separately for each account, at such time and for such amounts as the board finds necessary. Assessments shall be due not less than 30 […]