(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.)
Notes of Decisions
Alabama Ins. Guar. Ass'n v. Magic City Trucking Serv., Inc., 547 So. 2d 849 (Ala. 1989).
· cites it 5× “The Act also provides for non-duplication of recovery, in § 27-42-12, which in pertinent part states: "(a) Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer which is also a covered claim, shall be…”
State Farm Mut. Auto. Ins. Co. v. Motley, 909 So. 2d 806 (Ala. 2005).
“" Although the Court in Hamm was interpreting the specific features of § 27-42-12 relating to rights of offset statutorily afforded the Alabama Insurance Guaranty Association ("the AIGA") against claims it is obligated to honor in the stead of an insolvent insurer and is…”
Alabama Ins. Guar. Ass'n v. Air Tuskegee, Ltd., 883 So. 2d 192 (Ala. 2003).
· cites it 3× “Ala. Code 1975, § 27-42-12(b), provides, in pertinent part: “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 .”
Alabama Ins. Guar. Ass'n v. Hollingsworth, 613 So. 2d 1204 (Ala. 1991).
· cites it 2× “The Guaranty Association contends that it would be entitled to the setoff because of § 27-42-12(a), which states: “(a) Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer which is also a covered…”
Gibson v. Alabama Ins. Guar. Ass'n, 601 So. 2d 416 (Ala. 1992).
· cites it 4× “As this Court has said in another opinion issued this date in a related case: “Specifically, § 27-42-12 provides that if one first exhausts other available in *418 surance coverage, he or she may then proceed against the AIGA as the guaranty fund for an insolvent insurer.”
— Ala. Code § 27-42-12(a) — 2 cases
Alabama Ins. Guar. Ass'n v. Hollingsworth, 613 So. 2d 1204 (Ala. 1991).
“The Guaranty Association contends that it would be entitled to the setoff because of § 27-42-12(a), which states: “(a) Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer which is also a covered…”
Gibson v. Alabama Ins. Guar. Ass'n, 601 So. 2d 416 (Ala. 1992).
“As this Court has said in another opinion issued this date in a related case: “Specifically, § 27-42-12 provides that if one first exhausts other available in *418 surance coverage, he or she may then proceed against the AIGA as the guaranty fund for an insolvent insurer.”
— Ala. Code § 27-42-12(b) — 2 cases
Alabama Ins. Guar. Ass'n v. Air Tuskegee, Ltd., 883 So. 2d 192 (Ala. 2003).
“Ala. Code 1975, § 27-42-12(b), provides, in pertinent part: “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 .”
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