USA Statutes : alabama
Title : Title 27 INSURANCE.
Chapter : Chapter 23 CASUALTY INSURANCE CONTRACTS.
Section 27-23-1Section 27-23-1
When insurer's liability absolute.
As to every contract of insurance made between an insurer and any insured by which such insured is insured against loss or damage on account of the bodily injury or death by accident of any person for which loss or damage such insured is responsible, whenever a loss occurs on account of a casualty covered by such contract of insurance, the liability of the insurer shall become absolute and the payment of the loss shall not depend upon the satisfaction by the insured of a final judgment against him for loss, or damage or death occasioned by the casualty. No such contract of insurance shall be cancelled or annulled by any agreement between the insurer and the insured after the insured has become responsible for such loss or damage, and any such cancellation or annulment shall be void.
(Code 1940, T. 28, §11; Acts 1971, No. 407, p. 707, §484.)Section 27-23-2Section 27-23-2
Rights of judgment creditors.
Upon the recovery of a final judgment against any person, firm or corporation by any person, including administrators or executors, for loss or damage on account of bodily injury, or death or for loss or damage to property, if the defendant in such action was insured against the loss or damage at the time when the right of action arose, the judgment creditor shall be entitled to have the insurance money provided for in the contract of insurance between the insurer and the defendant applied to the satisfaction of the judgment, and if the judgment is not satisfied within 30 days after the date when it is entered, the judgment creditor may proceed against the defendant and the insurer to reach and apply the insurance money to the satisfaction of the judgment.
(Acts 1953, No. 283, p. 350; Acts 1971, No. 407, p. 707, §485.)Section 27-23-20Section 27-23-20
Definitions.
For the purposes of this article, the following terms shall have the meanings respectively ascribed to them by this section.
(1) POLICY OF AUTOMOBILE LIABILITY INSURANCE. A policy delivered, or issued for delivery, in this state insuring a natural person as named insured or one or more related individuals, resident of the same household, and under which the insured vehicles therein designated are of the following types only:
a. A motor vehicle of the private passenger or station type that is not used as a public or livery conveyance for passengers nor rented to others; or
b. Any other four-wheel motor vehicle with a load capacity of 1,500 pounds or less which is not used in the occupation, profession or business of the insured; provided, however, that this article shall not apply:
1. To policies of automobile liability insurance issued under an automobile assigned risk plan;
2. To any policy insuring more than four automobiles; nor
3. To any policy covering garage, automobile sales agency, repair shop, service station or public parking place operation hazards and provided, further, that this article shall apply only to that portion of an automobile liability policy insuring against bodily injury and property damage liability and to the provisions therein, if any, relating to medical payments and uninsured motorists' coverage.
(2) NONPAYMENT OF PREMIUM. Failure of the named insured to discharge, when due, any of his obligations in connection with the payment of premiums on a policy of automobile liability insurance or any installment of such premium, whether the premium is payable directly to the insurer or its agent or indirectly under any premium finance plan or extension of credit.
(Acts 1971, No. 407, p. 707, §485.1.)Section 27-23-21Section 27-23-21
Reasons for cancellation.
(a) No notice of cancellation of a policy of automobile liability insurance shall be effective unless it is based on one or more of the following reasons:
(1) Nonpayment of premium;
(2) The policy was obtained through a material misrepresentation;
(3) Any insured violated any of the terms and conditions of the policy;
(4) The named insured failed to disclose fully his motor vehicle accidents and moving traffic violations for the preceding 36 months if called for in the application;
(5) The named insured failed to disclose in his written application or in response to inquiry by his broker, or by the insurer or its agent information necessary for the acceptance or proper rating of the risk;
(6) Any insured made a false or fraudulent claim or knowingly aided or abetted another in the presentation of such a claim;
(7) Failure to maintain membership in any group or organization when such membership is a prerequisite to the purchase of such insurance;
(8) The named insured or any other operator who either resides in the same household or customarily operates an automobile insured under such policy:
a. Has within the 36 months prior to the notice of cancellation had his driver's license under suspension or revocation;
b. Is, or becomes, subject to epilepsy or heart attacks, and such individual does not produce a certificate from a physician testifying to his unqualified ability to operate a motor vehicle safely;
c. Has an accident record, conviction record (criminal or traffic), physical, mental or other condition which is such that his operation of an automobile might endanger the public safety;
d. Has within the 36 months prior to the notice of cancellation been addicted to the use of narcotics or other drugs;
e. Uses alcoholic beverage to excess;
f. Has been convicted or forfeited bail during the 36 months immediately preceding the notice of cancellation for:
1. Any felony;
2. Criminal negligence resulting in death, homicide or assault arising out of the operation of a motor vehicle;
3. Operating a motor vehicle while in an intoxicated condition or while under the influence of drugs;
4. Being intoxicated while in, or about, an automobile or while having custody of an automobile;
5. Leaving the scene of an accident without stopping to report;
6. Theft or unlawful taking of a motor vehicle;
7. Making false statements in an application for a driver's license; or
g. Has been convicted of or forfeited bail for three or more violations, within the 36 months immediately preceding the notice of cancellation, of any law, ordinance or regulation limiting the speed of motor vehicle laws of any state, violation of which constitutes a misdemeanor, whether or not the violations were repetitions of the same offense or different offenses; or
(9) The insured automobile is:
a. So mechanically defective that its operation might endanger public safety;
b. Used in carrying passengers for hire or compensation; provided, however, that the use of an automobile for a car pool shall not be considered use of an automobile for hire or compensation;
c. Used in the business of transportation of flammables or explosives;
d. An authorized emergency vehicle;
e. Changed in shape or condition during the policy period so as to increase the risk substantially; or
f. Subject to an inspection law and has not been inspected or, if inspected, has failed to qualify.
(b) This section shall not apply to any policy of automobile liability insurance which has been in effect less than 60 days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy.
(Acts 1971, No. 407, p. 707, §485.2.)Section 27-23-22Section 27-23-22
Effect of renewal.
Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of such renewal.
(Acts 1971, No. 407, p. 707, §485.4.)Section 27-23-23Section 27-23-23
Notice of cancellation - Time; reasons.
No notice of cancellation of a policy to which Section 27-23-21 applies shall be effective unless mailed or delivered by the insurer to the named insured at least 20 days prior to the effective date of cancellation; provided, however, that where cancellation is for nonpayment of premium, at least 10 days' notice of cancellation accompanied by the reason therefor shall be given. Unless the reason, or reasons, accompany or are included in the notice of cancellation, the notice of cancellation shall state, or be accompanied by a statement, that upon written request of the named insured, mailed or delivered to the insurer not less than 15 days prior to the effective date of cancellation, the insurer will specify the reason, or reasons, for such cancellation.
(Acts 1971, No. 407, p. 707, §485.3.)Section 27-23-24Section 27-23-24
Notice of cancellation — Availability of assigned risk plan notification.
When a policy is cancelled other than for nonpayment of premium, the insurer shall notify the named insured of his possible eligibility for insurance through the automobile assigned risk plan. Such notice shall accompany, or be included in, the notice of cancellation and shall state that such notice of availability of the automobile assigned risk plan is given pursuant to this article.
(Acts 1971, No. 407, p. 707, §485.6.)Section 27-23-25Section 27-23-25
Notice of cancellation — Proof of notice.
Proof of mailing of notice of cancellation or of reasons for cancellation to the named insured at the address shown in the policy shall be sufficient proof of notice.
(Acts 1971, No. 407, p. 707, §485.5.)Section 27-23-26Section 27-23-26
Specification of reasons for cancellation upon insured's request.
Where the reason, or reasons, for cancellation do not accompany or are not included in the notice of cancellation, the insurer shall, upon written request of the named insured, mailed or delivered to the insurer not less than 15 days prior to the effective date of cancellation, specify in writing the reason, or reasons, for such cancellation. Such reasons shall be mailed or delivered to the named insured within five days after nonpayment of premium. This section shall apply only to a cancellation to which Section 27-23-21 applies.
(Acts 1971, No. 407, p. 707, §485.7.)Section 27-23-27Section 27-23-27
Liability of insurer, etc., for statements, etc.
There shall be no liability on the part of and no cause of action of any nature shall arise against any insurer, its authorized representative, its agents, its employees or any firm, person or corporation furnishing to the insurer information as to reasons for cancellation for any statement made by any of them in any written notice of cancellation, for the providing of information pertaining thereto or for statements made or evidence submitted at the hearings conducted in connection therewith.
(Acts 1971, No. 407, p. 707, §485.8.)Section 27-23-28Section 27-23-28
Applicability of article to nonrenewal.
Nothing in this article shall apply to nonrenewal.
(Acts 1971, No. 407, p. 707, §485.9.) 
