reglab/housing_qa huggingface dataset:
AL Code § 27-41-37 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 41 - Investments of Life, Disability and Burial Insurance Companies.|Section 27-41-37 - Investments of Mutual Aid Associations - Generally.

Section 27-41-37Investments of mutual aid associations - Generally. (a) The funds of a mutual aid association shall be in cash or shall be invested as provided in Sections 27-41-3 through 27-41-36 and Section 27-41-38 as applicable to life insurers, except that: (1) Funds of the association to the extent of its reserve liabilities resulting from valuation of its contracts providing for benefits, aid, or services payable or to be rendered other than in cash may, at the option of the association, be invested in securities or assets eligible for investment of the funds of life insurers in general, but with category limits as follows in lieu of limits otherwise applicable thereto under Sections 27-41-3 through 27-41-36: a. Not to exceed 25 percent of the reserves of the association in the aggregate may be invested in preferred and guaranteed stocks authorized in Section 27-41-16 and common stocks authorized under Section 27-41-17; b. Not to exceed 10 percent of such reserves may be invested in insurance stock authorized under Section 27-41-18; and c. Not to exceed 40 percent of such reserves may be invested in real estate for production of income authorized under Section 27-41-34. (2) In addition to the investment of particular reserves in designated categories of investments as provided in subdivision (1) of this subsection, the association may invest additional funds in the same categories, but within the percentage limitations otherwise applicable under Sections 27-41-3 through 27-41-36 as computed upon all of the assets of the association after deduction of the reserves mentioned in subdivision (1) of this subsection. (b) This section shall not apply to mutual aid corporations that received a certificate of authority prior to July 31, 1967. The moneys derived by such corporations from the payment of subscriptions to its capital stock, and the payment of sales of stock (contributed surplus for mutual) may be invested in bonds of the United States or of this state or of the cities or counties of this state, estimated at their market value, or in notes or mortgages secured by real estate collateral worth twice the amount of said mortgages or notes. (c) Mutual aid corporations, both stock and mutual, organized prior to July 31, 1967, shall be solvent so long as their assets exceed their liabilities. (Acts 1977, No. 408, p. 530, §41.)
AL Code § 27-41-38 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 41 - Investments of Life, Disability and Burial Insurance Companies.|Section 27-41-38 - Investments of Mutual Aid Associations - Funeral Supply Inventories and Funeral Equipment.

Section 27-41-38Investments of mutual aid associations - Funeral supply inventories and funeral equipment. In addition to other investments permitted under this chapter, mutual aid associations may invest in funeral supply inventories, consisting of caskets, suits, robes, dresses, and embalming supplies, and funeral equipment, consisting of automobiles, hearses, ambulances, funeral cars, and other motor vehicle equipment, to the extent reasonably necessary to the full performance by the association of its outstanding contracts and policies. Such funeral supply inventories shall not exceed 25 percent of the association's assets. (Acts 1977, No. 408, p. 530, §38.)
AL Code § 27-41-39 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 41 - Investments of Life, Disability and Burial Insurance Companies.|Section 27-41-39 - Investments of Foreign and Alien Insurers; Cash Equivalents.

Section 27-41-39Investments of foreign and alien insurers; cash equivalents. (a) The investments of a foreign or alien insurer shall be as permitted by the laws of its domicile, but shall be of a quality and diversity substantially equivalent to that required of like domestic insurers under this chapter. (b)(1) Cash equivalents are exempt from the limitations of this section. (2) Cash equivalents means investments with a maturity of 90 days or less which are highly rated by a nationally recognized statistical rating organization recognized by the Commissioner of Insurance and which are highly liquid, readily convertible to known amounts of cash without penalty, and so near maturity that they present insignificant risk of change in value. (Acts 1977, No. 408, p. 530, §40; Act 2013-197, p. 386, §1.)
AL Code § 27-41-40 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 41 - Investments of Life, Disability and Burial Insurance Companies.|Section 27-41-40 - Effect of Failure to Dispose of Real Estate, Personal Property, Securities, etc., Within Prescribed Period of Time.

Section 27-41-40Effect of failure to dispose of real estate, personal property, securities, etc., within prescribed period of time. Any real estate, personal property, securities, or other investment lawfully acquired and held by an insurer shall not be allowed as an admitted asset of the insurer after expiration of the period for disposal thereof or any extension of such period granted by the commissioner pursuant to the provisions of Section 27-41-34. (Acts 1977, No. 408, p. 530, §36.)
AL Code § 27-41-41 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 41 - Investments of Life, Disability and Burial Insurance Companies.|Section 27-41-41 - Only Eligible Investments to Be Counted as Admitted Assets; Treatment of Investments Partially Qualifying as Eligible Investments.

Section 27-41-41Only eligible investments to be counted as admitted assets; treatment of investments partially qualifying as eligible investments. Except as expressly prohibited in Section 27-41-36, an insurer may make any investment without limit as to kind, time, or amount, but only eligible investments shall be included or counted as admitted assets of the insurer in the determination of its financial condition. If part of an investment qualifies as an eligible investment under any provision of this act and part does not, then only the part of the investment so qualifying shall be counted as an admitted asset. (Acts 1977, No. 408, p. 530, §37.)
AL Code § 27-42-1 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-1 - Short Title.

Section 27-42-1Short title. This chapter shall be known and may be cited as the "Alabama Insurance Guaranty Association Act." (Acts 1980, No. 80-806, p. 1639, §1.)
AL Code § 27-42-2 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-2 - Purpose of Chapter.

Section 27-42-2Purpose of chapter. The purpose of this chapter is to provide a mechanism for the payment of covered claims under certain insurance policies, to avoid excessive delay in payments and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies and to provide an association to assess the cost of such protection among insurers. (Acts 1980, No. 80-806, p. 1639, §2.)
AL Code § 27-42-3 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-3 - Applicability of Chapter.

Section 27-42-3Applicability of chapter. This chapter shall apply to all kinds of direct insurance, excluding all of the following: (1) Life, annuity, health, or disability insurance. (2) Mortgage guaranty, financial guaranty, or other forms of insurance offering protection against investment risks. (3) Fidelity or surety bonds, or any other bonding obligations. (4) Credit insurance, vendors' single interest insurance, or collateral protection insurance or any similar insurance protecting the interests of a creditor arising out of a creditor-debtor transaction. (5) Insurance of warranties or service contracts, including insurance that provides for the repair, replacement, or service of goods or property, or indemnification for repair, replacement, or service, for the operational or structural failure of the goods or property due to a defect in materials, workmanship, or normal wear and tear, or provides reimbursement for the liability incurred by the issuer of agreements or service contracts that provide such benefits. (6) Title insurance. (7) Ocean marine insurance. (8) Any insurance provided by or guaranteed by the government. (Acts 1980, No. 80-806, p. 1639, §3; Act 2018-526, §1.)
AL Code § 27-42-4 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-4 - Construction of Chapter.

Section 27-42-4Construction of chapter. This chapter shall be liberally construed to effect the purpose under Section 27-42-2 which will constitute an aid and guide to interpretation. (Acts 1980, No. 80-806, p. 1639, §4.)
AL Code § 27-42-6 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-6 - Association Created; Member Insurers; Accounts.

Section 27-42-6Association created; member insurers; accounts. There is created a nonprofit unincorporated legal entity to be known as the Alabama Insurance Guaranty Association. All insurers defined as member insurers in subdivision (6) of Section 27-42-5 shall be and remain members of the association as a condition of their authority to transact insurance in this state. The association shall perform its functions under a plan of operation established and approved under Section 27-42-9 and shall exercise its powers through a board of directors established under Section 27-42-7. For purposes of administration and assessment, the association shall be divided into three separate accounts: (a) the workmen's compensation insurance account; (b) the automobile insurance account; and (c) the account for all other insurance to which this chapter applies. (Acts 1980, No. 80-806, p. 1639, §6.)
AL Code § 27-42-7 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-7 - Board of Directors; Selection; Vacancies; Expenses.

Section 27-42-7Board of directors; selection; vacancies; expenses. (a) The board of directors of the association shall consist of not less than five nor more than nine persons serving terms as established in the plan of operation. The members of the board shall be selected by member insurers subject to the approval of the commissioner. Vacancies on the board shall be filled for the remaining period of the term by a majority vote of the remaining board members subject to the approval of the commissioner. If no members are selected within 60 days after January 1, 1981, the commissioner may appoint the initial members of the board of directors. (b) In approving the selections to the board, the commissioner shall consider among other things whether all member insurers are fairly represented. (c) Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors. (Acts 1980, No. 80-806, p. 1639, §7.)
AL Code § 27-42-8.1 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-8.1 - Maximum Assessment.

Section 27-42-8.1Maximum assessment. (a) 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 workers' compensation insurance for the calendar year preceding the assessment. (b) The provisions of this section shall apply to the Alabama Insurance Guaranty Association's obligations under policies of insolvent insurers as they exist on and after May 19, 2008. (Act 2008-460, p. 894, §1.)
AL Code § 27-42-10 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-10 - Duties and Powers of the Commissioner; Judicial Review.

Section 27-42-10Duties and powers of the commissioner; judicial review. (a) The commissioner shall: (1) Notify the association of the existence of an insolvent insurer not later than three days after he receives notice of determination of the insolvency. The association shall be entitled to a copy of any complaint seeking an order of liquidation with a finding of insolvency against a member company at the time that such complaint is filed with a court of competent jurisdiction. (2) Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer. (b) The commissioner may: (1) Require that the association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this chapter. Such notification shall be by mail at their last known address, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation shall be sufficient. (2) Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may levy a fine on any member insurer which fails to pay an assessment when due. Such fine shall not exceed five percent of the unpaid assessment per month, except that no fine shall be less than $100.00 per month. (3) Revoke the designation of any servicing facility if he finds claims are being handled unsatisfactorily. (c) Any final action or order of the commissioner under this chapter shall be subject to judicial review in a court of competent jurisdiction. (Acts 1980, No. 80-806, p. 1639, §10.)
AL Code § 27-42-12 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-12 - Exhaustion of Rights; Nonduplication of Recovery.

Section 27-42-12Exhaustion of rights; nonduplication of recovery. (a) 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 coverage provided by any such policy. Any amount payable on a covered claim under this chapter shall be reduced by the full applicable limits stated in the other insurance policy and the association shall receive a full credit for the stated limits, or, where there are no applicable stated limits, the claim shall be reduced by the total recovery. Notwithstanding the foregoing, no person shall be required to exhaust any right under the policy of an insolvent insurer. (1) A claim under a policy providing liability coverage to a person who may be jointly and severally liable with, or a joint tortfeasor with, the person covered under the policy of the insolvent insurer that gives rise to the covered claim, shall be considered to be a claim arising from the same facts, injury, or loss that gave rise to the covered claim against the association. (2) For purposes of this section, a claim under an insurance policy shall also include: a. A claim against a health maintenance organization, a hospital plan corporation, or a professional health service corporation. b. Any amount payable by or on behalf of a self-insurer. (3) To the extent that the association's obligation is reduced by the application of this section, the liability of the person insured by the insolvent insurer's policy for the claim shall be reduced in the same amount. (b) Any person having a claim which may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first from the association of the place of residence of the insured except that if it is a first party claim for damage to property with a permanent location, he or she shall seek recovery first from the association of the location of the property and, if it is a workers' compensation claim, he or she shall seek recovery first from the association of the residence of the claimant at the time of the accident giving rise to the claim. Any recovery under this chapter shall be reduced by the amount of recovery from any other insurance guaranty association or its equivalent. (Acts 1980, No. 80-806, p. 1639, §12; Act 2018-526, §1.)
AL Code § 27-42-13 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-13 - Prevention of Insolvencies; Examinations of Insurers; Reports.

Section 27-42-13Prevention of insolvencies; examinations of insurers; reports. (a) To aid in the detection and prevention of insurer insolvencies, it shall be the duty of the board of directors, upon majority vote, to notify the commissioner of any information indicating any member insurer may be insolvent or in a financial condition hazardous to the policyholders or the public. (b) The board of directors may, upon majority vote, request that the commissioner order an examination of any member insurer which the board in good faith believes may be in a financial condition hazardous to the policyholders or the public. Within 30 days of the receipt of such request, the commissioner shall begin such examination. The examination may be conducted as a National Association of Insurance Commissioners' examination or may be conducted by such persons as the commissioner designates. The cost of such examination shall be paid by the association and the examination report shall be treated as are other examination reports. In no event, shall such examination report be released to the board of directors prior to its release to the public, but this shall not preclude the commissioner from complying with subsection (c) of this section. The commissioner shall notify the board of directors when the examination is completed. The request for an examination shall be kept on file by the commissioner, but it shall not be open to public inspection prior to the release of the examination report to the public. (c) It shall be the duty of the commissioner to report to the board of directors when he has reasonable cause to believe that any member insurer examined or being examined at the request of the board of directors may be insolvent or in a financial condition hazardous to the policyholders or the public. (d) The board of directors may, upon majority vote, make reports and recommendations to the commissioner upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer. Such reports and recommendations shall not be considered public documents. (e) The board of directors may, upon majority vote, make recommendations to the commissioner for the detection and prevention of insurer insolvencies. (f) The board of directors shall, at the conclusion of any insurer insolvency in which the association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency, based on the information available to the association and submit such report to the commissioner. (Acts 1980, No. 80-806, p. 1639, §13.)
AL Code § 27-42-14 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-14 - Examination of the Association; Financial Report.

Section 27-42-14Examination of the association; financial report. The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the commissioner. (Acts 1980, No. 80-806, p. 1639, §14.)
AL Code § 27-42-15 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-15 - Tax Exemption.

Section 27-42-15Tax exemption. The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions except taxes levied on real or personal property. (Acts 1980, No. 80-806, p. 1639, §15.)
AL Code § 27-42-16 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-16 - Credits for Assessments Paid; Disposition of Refunds Previously Offset.

Section 27-42-16Credits for assessments paid; disposition of refunds previously offset. (a) A member insurer may offset against its premium tax liability to this state an assessment described in subdivision (3) of subsection (a) of Section 27-42-8 to the extent of 20 percent of the amount of such assessment for each of the five calendar years following the year in which such assessment was paid. In the event a member insurer should cease doing business, all uncredited assessments may be credited against its premium tax liability for the year it ceases doing business. (b) Any sums acquired by refund, pursuant to subdivision (7) of subsection (a) of Section 27-42-8, from the association which have theretofore been written off by contributing insurers and offset against premium taxes as provided in subsection (a) of this section, and are not then needed for purposes of this chapter, shall be paid by the association to the commissioner and by him deposited with the State Treasurer for credit to the General Fund of this state. (Acts 1980, No. 80-806, p. 1639, §16.)
AL Code § 27-42-17 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-17 - Immunity.

Section 27-42-17Immunity. There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the association or its agents or employees, the board of directors or the commissioner or his representatives for any action taken by them in the performance of their powers and duties under this chapter. (Acts 1980, No. 80-806, p. 1639, §17.)
AL Code § 27-42-18 (2021)
2021 Code of Alabama|Title 27 - Insurance.|Chapter 42 - Insurance Guaranty Association.|Section 27-42-18 - Stay of Proceedings; Access of Board to Records of Insurers.

Section 27-42-18Stay of proceedings; access of board to records of insurers. All proceedings in which the insolvent insurer is a party or is obligated to defend a party in any court in this state shall be stayed for up to six months and such additional time thereafter as may be determined by the court from the date the insolvency is determined or an ancillary proceeding is instituted in the state, whichever is later, to permit proper defense by the association of all pending causes of action as to any covered claims arising from a judgment under any decision, verdict, or finding based on the default of the insolvent insurer or its failure to defend an insured, the association either on its own behalf or on behalf of such insured may apply to have such judgment, order, or administrator that made such judgment, order, decision, verdict, or finding and shall be permitted to defend such claim on the merits. The liquidator, receiver, or statutory successor of an insolvent insurer covered by this chapter shall permit access by the board or its authorized representative to such of the insolvent insurer's records which are necessary for the board in carrying out its functions under this chapter with regard to covered claims. In addition, the liquidator, receiver, or statutory successor shall provide the board or its representative with copies of such records upon the request by the board and at the expense of the board. (Acts 1980, No. 80-806, p. 1639, §18.)