Who does CIGA insure?

Who does CIGA insure?

• A. Insolvent insurance companies.
• B. Private self-insured employers.
• C. Workers' comp claimants.
• D. Hospitals.

Answer: (A)

CIGA exists to protect the people who hold insurance with an insurer that becomes insolvent. When a carrier fails, CIGA steps in to pay the covered claims and policy benefits for those policyholders, up to the applicable limits. It does not insure the insolvent company itself. The protection is geared toward the insured individuals or entities who held a policy with the now-insolvent insurer, ensuring they don’t lose coverage or have unpaid claims solely because the insurer went bankrupt. In short, CIGA insures the policyholders of insolvent insurers, not the insolvent companies, nor specific groups like hospitals or workers’ compensation claimants beyond their insured status.

CIGA exists to protect the people who hold insurance with an insurer that becomes insolvent. When a carrier fails, CIGA steps in to pay the covered claims and policy benefits for those policyholders, up to the applicable limits. It does not insure the insolvent company itself. The protection is geared toward the insured individuals or entities who held a policy with the now-insolvent insurer, ensuring they don’t lose coverage or have unpaid claims solely because the insurer went bankrupt. In short, CIGA insures the policyholders of insolvent insurers, not the insolvent companies, nor specific groups like hospitals or workers’ compensation claimants beyond their insured status.