Alabama Insurance Guaranty Association

The Alabama Insurance Guaranty Association serves as an agent of the State of Alabama and provides a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payment and financial loss to claimants or policyholders due to insolvency. In 2021, it has maintained the books and records and administered claims for 43 insolvencies, with each insolvency's books and records kept in three separate accounts as required by state statute. The association was created by the Alabama Insurance Guaranty Act.