Final answer:
The exact maximum benefit amount from the Alabama Life and Disability Insurance Guarantee Association is not indicated, but insurance guarantee associations typically have limits such as $300,000 for life insurance death benefits. These limits are usually set by state laws.
Step-by-step explanation:
The maximum amount that the Alabama Life and Disability Insurance Guarantee Association will pay in benefits for one life is not explicitly given in the reference information provided. However, insurance guarantee associations typically have certain limits on the benefits they can pay out, which may be outlined in their policy documents or the law. The guarantee association is in place to protect policyholders if an insurance company becomes insolvent. While the specifics for Alabama may vary, as an example, the National Organization of Life & Health Insurance Guaranty Associations (NOLHGA) often notes coverage limits per individual, such as $300,000 for life insurance death benefits and $100,000 in cash surrender or withdrawal value for life insurance.
In general, guarantee associations like the one in Alabama are designed to continue coverage and pay claims up to a specified limit set by the state law, ensuring policyholders are not left without support due to the failure of their insurance provider.