(a) The commissioner shall:
(1) Notify the association of the existence of an insolvent insurer not later than three days after he receives notice of determination of the insolvency. The association shall be entitled to a copy of any complaint seeking an order of liquidation with a finding of insolvency against a member company at the time that such complaint is filed with a court of competent jurisdiction.
(2) Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.
(b) The commissioner may:
(1) Require that the association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this chapter. Such notification shall be by mail at their last known address, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation shall be sufficient.
(2) Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may levy a fine on any member insurer which fails to pay an assessment when due. Such fine shall not exceed five percent of the unpaid assessment per month, except that no fine shall be less than $100.00 per month.
(3) Revoke the designation of any servicing facility if he finds claims are being handled unsatisfactorily.
(c) Any final action or order of the commissioner under this chapter shall be subject to judicial review in a court of competent jurisdiction.
Structure Code of Alabama
Chapter 42 - Insurance Guaranty Association.
Section 27-42-1 - Short Title.
Section 27-42-2 - Purpose of Chapter.
Section 27-42-3 - Applicability of Chapter.
Section 27-42-4 - Construction of Chapter.
Section 27-42-5 - Definitions.
Section 27-42-6 - Association Created; Member Insurers; Accounts.
Section 27-42-7 - Board of Directors; Selection; Vacancies; Expenses.
Section 27-42-8 - Powers and Duties.
Section 27-42-8.1 - Maximum Assessment.
Section 27-42-9 - Plan of Operation.
Section 27-42-10 - Duties and Powers of the Commissioner; Judicial Review.
Section 27-42-11 - Settlement and Payment of Claims; Recovery.
Section 27-42-12 - Exhaustion of Rights; Nonduplication of Recovery.
Section 27-42-13 - Prevention of Insolvencies; Examinations of Insurers; Reports.
Section 27-42-14 - Examination of the Association; Financial Report.
Section 27-42-15 - Tax Exemption.
Section 27-42-16 - Credits for Assessments Paid; Disposition of Refunds Previously Offset.
Section 27-42-18 - Stay of Proceedings; Access of Board to Records of Insurers.