Alabama § 27-44-20 Association, Policyholders, Beneficiaries, and Insureds to Have Preferred Creditor Status

Alabama Statutes

§ 27-44-20 — Association, Policyholders, Beneficiaries, and Insureds to Have Preferred Creditor Status

Alabama § 27-44-20

Title 27Insurance

Ch. 44Life and Disability Insurance Guaranty Association

This text of Alabama § 27-44-20 (Association, Policyholders, Beneficiaries, and Insureds to Have Preferred Creditor Status) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 27-44-20 (2026).

Text

Upon the issuance of a proper court order placing a domestic insurer in receivership or placing a foreign insurer in ancillary receivership for rehabilitation or liquidation, all policyholders, beneficiaries, and insureds of such insolvent insurer, with respect to claims arising from and within the coverage of and not in excess of the applicable limits of insurance policies and contracts issued by the insolvent insurer and the Alabama Life and Disability Insurance Guaranty Fund shall be preferred creditors of said insolvent insurer.

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Upon the issuance of a proper court order placing a domestic insurer in receivership or placing a foreign insurer in ancillary receivership for rehabilitation or liquidation, all policyholders, beneficiaries, and insureds of such insolvent insurer, with respect to claims arising from and within the coverage of and not in excess of the applicable limits of insurance policies and contracts issued by the insolvent insurer and the Alabama Life and Disability Insurance Guaranty Fund shall be preferred creditors of said insolvent insurer.