Insurance Guarantee Associations

Insurance Guarantee Associations are organizations that protect policyholders if their insurance company becomes insolvent or unable to pay claims. Funded by mandatory assessments from insurance companies, these associations act as a safety net, ensuring that policyholders continue to receive benefits, such as claims payments or policy refunds. They operate to maintain public confidence in the insurance system by providing financial backup, especially in cases where individual companies fail. Essentially, they serve as a last-resort safeguard to protect consumers and uphold the stability of the insurance market.