Supporting a System of Policyholder Protection

At the heart of every property and casualty insurance contract is a promise that if misfortune occurs, insurance will cover outstanding claims to soften the blow.

But what happens when an insurance company becomes financially troubled, fails, and can no longer uphold its end of the bargain?

That’s when the state property and casualty guaranty fund system – a system few know much about – steps in. Put simply, guaranty funds provide an essential safety net for policyholders, one that meets the needs of those least able to deal with losses should their insurance company fail.

The National Conference of Insurance Guaranty Funds (NCIGF) – a non-profit, member-funded association – provides national assistance and support to the property and casualty guaranty funds in each of the 50 states, the District of Columbia, and the Commonwealth of Puerto Rico.

How is the system funded?

The property and casualty guaranty fund system is a privately funded, nonprofit, state-based program. The system pays covered claims up to a state’s legally allowable limits and has safeguarded countless policyholders who might otherwise face financial ruin because of unpaid claims related to insolvency.

The guaranty fund system supports the insurance promise by assuring the viability, commitment, and reputation of the property and casualty insurance industry, adding substantial value to both the industry and its customers.

Want To Know More?

Please see our backgrounder for more information about the NCIGF and the Guaranty Fund System.

 NCIGF 2023 Annual Report