Alabama Insurance Guaranty Association

The Alabama Life & Disability Insurance Guaranty Association (ALDIGA) is a statutory entity created in 1983 by the Alabama legislature to protect Alabama residents who are policyholders and beneficiaries of policies issued by an insolvent insurance company. Our mission is to provide assistance to Alabama policyholders in the event of an insurance company insolvency.

ALDIGA is composed of all insurers licensed to sell life insurance, accident and health insurance, and individual annuities in the state of Alabama. The guaranty association is funded by assessments of its member insurance companies. In the event that a member insurer is found to be insolvent and is placed under a final order of liquidation, rehabilitation, or conservation by a court of competent jurisdiction, ALDIGA is authorized to provide protection to live human beings who are Alabama residents who are holders of life and health insurance policies and individual annuities with the insolvent insurer.

The protection provided by the guaranty association is based on limits set forth in Alabama law and the language of the insolvent company's policies at the time of insolvency. ALDIGA works with other affected guaranty associations in other states and the court-appointed receiver in servicing the insurance company's policies and providing coverage to Alabama's resident policyholders.

The Alabama Life & Disability Insurance Guaranty Association is committed to providing accurate and up-to-date information to the public. We will make every effort to ensure that the information provided on this website is in accordance with the most current law. However, if there should be any inconsistency between the Guaranty Association Act or any other law or regulation and the information on this website, the relevant law will supersede.

Services Offered

In the event of an insurance company insolvency, ALDIGA provides the following services to Alabama policyholders:

• Continuation of coverage: In most cases, ALDIGA will continue coverage as long as premiums are paid or cash value exists. It may do this directly, or, most often, it may transfer the policy to another insurance company.
• Transfer of policies: When possible, and if allowed under the terms of the insolvent company's policy, ALDIGA may elect to cancel policies after notice is given to you and after all valid claims have been paid.
• Coverage determination: Coverage is determined by Alabama law and policy language at the time the guaranty association is activated to provide protection.

ALDIGA is here to help Alabama policyholders in the event of an insurance company insolvency. We will seek to transfer policies to a sound insurer as soon as it is practical and will do our best to help policyholders understand their options. However, we cannot give legal advice or advice on what course of action to follow. In important matters, policyholders should seek professional assistance from their insurance agent or financial advisor.