HB403 Summary

• Establishes scope and purpose of Alabama Life and Disability Insurance Guaranty Association to protect policyowners and beneficiaries against insurer insolvency, with coverage determined by payee residency for structured settlement annuities rather than contract owner residency.

• Sets specific coverage limits: $300,000 death benefits/$100,000 cash surrender for life insurance; $300,000 disability income/long-term care, $500,000 hospital/medical/surgical; $250,000 annuity benefits; maximum $300 Class A annual assessment per member insurer.

• Allows member insurers to appeal association decisions to the commissioner within 60 days and provides a 180-day stay on proceedings involving insolvent insurers.

• Coordinates coverage with other state guaranty associations to avoid duplication and conforms Alabama law to the National Association of Insurance Commissioners' model law.

• Becomes effective January 1st following passage and approval by the Governor.