SB283 Summary

• Raises the statutory cap for covered claim benefits from $150,000 to $300,000 per claim and establishes an aggregate cap on total association obligations.

• Requires the Alabama Insurance Guaranty Association to pay covered claims before an order of liquidation is entered for an insolvent insurer.

• Expands the definition of excluded insurance types to clarify that mortgage guaranty, financial guaranty, fidelity bonds, surety bonds, credit insurance, warranty insurance, title insurance, ocean marine insurance, and government-provided insurance are not covered.

• Adds new definitions including "affiliate," "high net worth insured" (net worth exceeding $25 million), "insured," and clarifies "covered claim" to exclude first party claims by high net worth insureds and punitive damages except under the Alabama Wrongful Death Act.

• Conforms association provisions to the most recent model act, including procedures for handling claims, assessing member insurers, and managing coordination with other state guaranty associations.