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 the coverages of and not in excess of the applicable limits of insurance policies and contracts issued by the insolvent insurer, and liability claims against insureds which claims are within the coverage of and not in excess of the applicable limits of insurance policies and insurance contracts issued by the insolvent insurer, and the Alabama Insurance Guaranty Association and any similar organization in another state shall be preferred creditors of said insolvent insurer.
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.