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State statute · Alabama

Insurance Guaranty Association (27-42-1 to 27-42-20)

Alabama Code Title 27 (Insurance) Chapter 42

Publisher
Legislative Services Agency of the Alabama Legislature
Edition
Code of Alabama as served by ALISON on 2026-09-29
Last checked
2026-09-29
Status
Code of Alabama, public domain
Edition and licensing notes

Publisher. Legislative Services Agency of the Alabama Legislature (ALISON, alison.legislature.state.al.us)

Status. Code of Alabama, public domain (state government edict).

Read the official textPractice questions from this source

What this document is

Alabama Code Title 27 (Insurance) Chapter 42 - Insurance Guaranty Association (27-42-1 to 27-42-20) is a state statute published by Legislative Services Agency of the Alabama Legislature (ALISON, alison.legislature.state.al.us). It is one of the Alabama documents that insurance license exam questions are written from, including alabama property & casualty, alabama personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

  • Ala. Code Section 27-42-3 (Applicability of Chapter)
    “This chapter shall apply to all kinds of direct insurance, excluding all of the following:”
  • Ala. Code Section 27-42-11(d) (Settlement and Payment of Claims; Recovery)
    “(d) The association shall not be obligated to pay any first party claims by a high net worth insured.”
  • Ala. Code Section 27-42-12(a) (Exhaustion of Rights; Nonduplication of Recovery)
    “Any person having a claim under an insurance policy, whether or not it is a policy issued by a member insurer, where the claim under the other policy arises from the same facts, injury, or loss that gave rise to the covered claim against the association, shall be required first to exhaust all...”
  • Ala. Code Section 27-42-8.1(a) (Maximum Assessment)
    “Notwithstanding the one percent maximum assessment set forth in subdivision (3) of subsection (a) of Section 27-42-8, no member insurer may be assessed in any one year for the workers’ compensation account an amount greater than two percent of that member insurer’s net direct written premiums for...”
  • Ala. Code Section 27-42-5(7)c (Definitions; Covered Claim)
    “c. Any amount awarded as punitive or exemplary damages, except for punitive damages awarded under the Alabama Wrongful Death Act.”
  • Ala. Code Section 27-42-8(a)(1)a. (Powers and Duties)
    “1. The full amount of a covered claim for benefits under workers’ compensation insurance coverage. 2. An amount not exceeding ten thousand dollars ($10,000) per policy for a covered claim for the return of unearned premium. 3. An amount not exceeding three hundred thousand dollars ($300,000) or the...”

Practice this material

Alabama Property & Casualty practice testAlabama Personal Lines practice test

Questions about this source

Alabama Code Title 27 (Insurance) Chapter 42 - Insurance Guaranty Association (27-42-1 to 27-42-20) is a state statute published by Legislative Services Agency of the Alabama Legislature (ALISON, alison.legislature.state.al.us). Edition: Code of Alabama as served by ALISON on 2026-09-29.

No. This page summarizes the document and links to the official version. Always rely on the text published by Legislative Services Agency of the Alabama Legislature (ALISON, alison.legislature.state.al.us) for the current law.

Practice questions for Alabama Property & Casualty, Alabama Personal Lines cite this document.

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