The Alabama Life and Disability Insurance Guaranty Association has a limit of liability for cash values that does not exceed:

The Alabama Life and Disability Insurance Guaranty Association provides a safety net for policyholders in the event that an insurance company becomes insolvent. This association is designed to protect consumers by ensuring that they receive a certain amount of their insurance benefits even if the issuing insurer cannot fulfill its obligations.

The specific limit for cash values is set at $100,000, meaning that if an insured policyholder has a cash value benefit as part of their life insurance policy, they can expect to recover up to this amount from the Guaranty Association if the insurance company defaults. This limit is critical as it assures policyholders of a certain level of financial protection, thus encouraging confidence in the insurance industry.

Understanding these limits is important for consumers when they choose insurance policies, as it informs them of the extent of coverage provided against the risk of insurer insolvency, thereby allowing for informed decision-making regarding their life and health insurance needs.