§ 27-42-1 Short title
§ 27-42-2 Purpose of chapter
§ 27-42-3 Applicability of chapter
§ 27-42-4 Construction of chapter
§ 27-42-5 Definitions
§ 27-42-6 Association created; member insurers; accounts
§ 27-42-7 Board of directors; selection; vacancies; expenses
§ 27-42-8 Powers and duties
§ 27-42-8.1 Maximum assessment
§ 27-42-9 Plan of operation
§ 27-42-10 Duties and powers of the commissioner; judicial review
§ 27-42-11 Settlement and payment of claims; recovery
§ 27-42-12 Exhaustion of rights; nonduplication of recovery
§ 27-42-13 Prevention of insolvencies; examinations of insurers; reports
§ 27-42-14 Examination of the association; financial report
§ 27-42-15 Tax exemption
§ 27-42-16 Credits for assessments paid; disposition of refunds previously offset
§ 27-42-17 Immunity
§ 27-42-18 Stay of proceedings; access of board to records of insurers
§ 27-42-19 Association, policyholders, beneficiaries, and insureds to have preferred creditor status
§ 27-42-20 Access to assets of insolvent insurer; application for court approval of plan to disburse assets; notice of application

Terms Used In Alabama Code > Title 27 > Chapter 42

  • account: Any one of the three accounts created by Section 27-42-6. See Alabama Code 27-42-5
  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • affiliate: A person who directly, or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer. See Alabama Code 27-42-5
  • Allegation: something that someone says happened.
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
  • Arrest: Taking physical custody of a person by lawful authority.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • association: The Alabama Insurance Guaranty Association created under Section 27-42-6. See Alabama Code 27-42-5
  • Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
  • circuit: means judicial circuit. See Alabama Code 1-1-1
  • claimant: Any insured making a first party claim or any person instituting a liability claim. See Alabama Code 27-42-5
  • commissioner: The Commissioner of Insurance of the State of Alabama. See Alabama Code 27-42-5
  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • control: The possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. See Alabama Code 27-42-5
  • COVERED CLAIM: An unpaid claim, including one of unearned premiums, which arises out of, and is within the coverage and not in excess of, the applicable limits of an insurance policy to which this chapter applies, issued by an insurer, if such insurer becomes an insolvent insurer after January 1, 1981, and (i) the claimant or insured is a resident of this state at the time of the insured event; or (ii) the property from which the claim arises is permanently located in this state. See Alabama Code 27-42-5
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
  • Deposition: An oral statement made before an officer authorized by law to administer oaths. Such statements are often taken to examine potential witnesses, to obtain discovery, or to be used later in trial.
  • Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Germane: On the subject of the pending bill or other business; a strict standard of relevance.
  • HIGH NET WORTH INSURED: Any insured whose net worth exceeds twenty-five million dollars ($25,000,000) on December 31 of the year prior to the year in which the insurer becomes an insolvent insurer; provided that an insured's net worth on that date shall be deemed to include the aggregate net worth of the insured and all of its subsidiaries and affiliates as calculated on a consolidated basis. See Alabama Code 27-42-5
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • INSOLVENT INSURER: An insurer licensed to transact insurance in this state, either at the time the policy was issued or when the insured event occurred, and against whom an order of liquidation with a finding of insolvency has been entered after January 1, 1981, by a court of competent jurisdiction in the insurer's state of domicile or of this state under the provisions of Chapter 32 of this title, which order of liquidation has not been stayed or been the subject of a writ of supersedeas bonds or other comparable order. See Alabama Code 27-42-5
  • insured: Any named insured, additional insured, vendor, lessor, or other party identified as an insured under a policy. See Alabama Code 27-42-5
  • Lawsuit: A legal action started by a plaintiff against a defendant based on a complaint that the defendant failed to perform a legal duty, resulting in harm to the plaintiff.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • MEMBER INSURER: Any person who (i) writes any kind of insurance to which this chapter applies under Section 27-42-3, including the exchange of reciprocal or interinsurance contracts, and (ii) is licensed to transact insurance in this state. See Alabama Code 27-42-5
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • NET DIRECT WRITTEN PREMIUMS: Direct gross premiums written in this state on insurance policies to which this chapter applies, less return premiums thereon and dividends paid or credited to, policyholders on such direct business. See Alabama Code 27-42-5
  • NET WORTH: The total assets of a person, less the total liabilities against those assets as determined in accordance with generally accepted accounting principles. See Alabama Code 27-42-5
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • person: Any individual or legal entity, including governmental entities. See Alabama Code 27-42-5
  • preceding: means next before. See Alabama Code 1-1-1
  • Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
  • residency: For purposes of determining residency in this chapter, the residency of a claimant or insured that is a corporation, partnership, association, or voluntary organization is the state in which the claimant's or insured's principal place of business is located. See Alabama Code 27-42-5
  • SELF-INSURER: A person that covers its liability through a qualified individual or group self-insurance program or any other formal program created for the specific purpose of covering liabilities typically covered by insurance. See Alabama Code 27-42-5
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
  • United States: includes the territories thereof and the District of Columbia. See Alabama Code 1-1-1
  • Verdict: The decision of a petit jury or a judge.
  • Writ: A formal written command, issued from the court, requiring the performance of a specific act.