Alabama Life & Disability Insurance Guaranty Association 6 Office Park Circle, Suite 200 / Birmingham, AL 35223 Home About Us FAQs Receiverships Additional Info Links Terms of Use Contact Us Frequently Asked Questions      What happens when my insurance company goes out of business? In most cases, a guaranty association 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. In any case, policyholders should continue making premium payments to keep their coverage in force. Since ALDIGA is a safety net, but not an insurance company, we will seek to transfer policies to a sound insurer as soon as it is practical. When possible, and if allowed under the terms of the insolvent company’s policy, ALDIGA may also elect to cancel policies after notice is given to you and after all valid claims have been paid.   NOTE: This information is not intended as legal advice, and no liability is assumed in connection with its use. The applicable state guaranty association statute is the controlling authority, regardless of any information presented on this site. Users should seek advice from a qualified attorney and should not rely on this compilation when considering any questions relating to guaranty association coverage.   [ Back to FAQ list ]