Ala. Code
Code of Alabama

Ala. Code § 27-42-6 (2026)

Association Created; Member Insurers; Accounts.

✓ official Alabama Legislature (ALISON) text, current July 2026
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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.)

Notes of Decisions
Cited in 3 cases, 2010–2013 · leading case: Alabama Ins. Guar. Ass'n v. Ass'n of Gen. Contractors Self-Insurer's Fund, 80 So. 3d 188 (Ala. 2010).
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Alabama Ins. Guar. Ass'n v. Ass'n of Gen. Contractors Self-Insurer's Fund, 80 So. 3d 188 (Ala. 2010). · cites it 4× “" The AIGA is "a nonprofit unincorporated legal entity," Ala.Code 1975, § 27-42-6, created pursuant to the Alabama Insurance Guaranty Association Act, Ala.”
Alabama Ins. Guar. Ass'n v. Mercy Med. Ass'n, 120 So. 3d 1063 (Ala. 2013). “Reliance was a member insurer of AIGA, which is “a nonprofit unincorporated legal entity,” § 27-42-6, Ala.Code 1975, established under the AIGA Act.”
Alabama Ins. Guar. Ass'n v. Water Works & Sanitary Sewer Bd. of the City of Montgomery, 93 So. 3d 94 (Ala. 2012). “Legion was a member insurer of AIGA, which is “a nonprofit, unincorporated legal entity,” § 27-42-6, Ala.Code 1975, established under the AIGA Act, § 27-42-1 et seq.”
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