Alabama Ins. Guar. Ass'n v. Hamm

These appeals, from cases consolidated in the trial court, present a question relating to the Alabama Insurance Guaranty Association (the "AIGA"), a nonprofit organization established by the legislature to alleviate some of the financial burden imposed on claimants and policyholders by the insolvency of an insurer. Ala. Code 1975, § 27-42-2, § 27-42-6. To do this, the AIGA covers certain claims under policies issued by now insolvent insurance companies. Ala. Code 1975, § 27-42-2, §27-42-3. Thus, the AIGA provides a measure of protection where an insured, in good faith, purchased coverage, but…