What is the Alabama Insurance Guaranty Association?
Quick answer:
The Alabama Insurance Guaranty Association pays covered claims when an admitted Alabama insurer becomes insolvent: workers compensation claims are paid in full with no cap, unearned premium is covered up to 10,000 dollars per policy, and most other covered claims are paid up to 300,000 dollars per claim or the policy limit, whichever is less (Code of Alabama Section 27-42-8). It does not cover surplus-lines (non-admitted) policies.
The Alabama Insurance Guaranty Association pays covered claims when an admitted Alabama insurer becomes insolvent: workers compensation claims are paid in full with no cap, unearned premium is covered up to 10,000 dollars per policy, and most other covered claims are paid up to 300,000 dollars per claim or the policy limit, whichever is less (Code of Alabama Section 27-42-8). It does not cover surplus-lines (non-admitted) policies.