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AL HB401
Bill
Status
3/6/2018
Primary Sponsor
Kerry Rich
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AI Summary
HB 401 Summary
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Raises the statutory cap for covered claim benefits from $150,000 to $300,000 per claim and establishes an aggregate cap for all covered claims combined.
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Requires the Alabama Insurance Guaranty Association to pay covered claims before an order of liquidation is entered for an insolvent insurer.
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Adds new definitions and conforms provisions of the Insurance Guaranty Association Act to the most recent model act, including definitions for "affiliate," "insured," and "high net worth insured."
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Specifies covered claim limitations including full payment of workers' compensation claims, up to $10,000 for unearned premiums, and excludes claims by high net worth insureds (those exceeding $25 million net worth).
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Becomes effective on the first day of the third month following passage and gubernatorial approval.
Legislative Description
Insurance companies, unsolvenices, Alabama Insurance Guaranty Association Act, provisions conformed to most recent model act, obligation of assoc. to pay covered claims before order of liquidation of insolvent insurer, statutory cap for benefits and aggregate cap provided, Secs. 27-42-3, 27-42-5, 27-42-8, 27-42-11, 27-42-12 am'd.
Insurance
Last Action
Read for the first time and referred to the Senate committee on Banking and Insurance
3/8/2018