The Alabama Life & Disability Insurance Guaranty Association is a statutory entity created in 1983 when the Alabama legislature enacted the Alabama Life and Disability Insurance Guaranty Association Act (the Act was amended as of January 1, 2013—see the Additional Info section for links to both versions of the Act). The guaranty association is composed of all insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the state of Alabama. In the event that a member insurer is found to be insolvent and is placed under a final order of liquidation, rehabilitation or conservation by a court of competent jurisdiction, the ALDIGA Act enables the guaranty association to provide protection up to statutory limits (set out in the Act) to live human beings who are Alabama residents who are holders of life and health insurance policies and individual annuities with the insolvent insurer.
Specifically, when a member insurer is found to be insolvent and is ordered liquidated, a court appointed receiver takes over the insurer under court supervision and processes the assets and liabilities through liquidation. ALDIGA typically works with other effected guaranty associations in other states and the court appointed receiver in servicing the insurance company's policies and providing coverage to Alabama's resident policyholders. The protection provided by the guaranty association is based on limits set forth in Alabama law and the language of the insolvent company's policies at the time of insolvency.
We will make every effort to ensure that the information provided here is in accordance with the most current law in the event that the Alabama legislature amends the Guaranty Association Act or other laws. However, if there should be any inconsistency between the Guaranty Association Act or any other law or regulation and the information on this Web site, the relevant law will supersede. In light of these changes in law and the dramatic variations in policy language, the association cannot make statements regarding coverage of a specific policy unless it is a policy with a company for which the association has been activated to provide protection. Finally, this Web site is for general information purposes and should not be relied upon as legal advice.
Again, we hope the information provided in this Web site is useful. Be sure to read the Frequently Asked Questions section of the site for more information, and please refer to the Contact Us section if you have any questions for the guaranty association.