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The National Conference of Insurance Guaranty Funds: Helping Guaranty Funds protect insurance consumers

While rare, the failure of a property and casualty insurance company is an unfortunate but inevitable result of a free-market. Insurer insolvencies can have serious financial implications for policyholders and claimants who have outstanding claims against a company.

Paying the covered claims of those whose insurance company has failed has been the mission of the property and casualty Guaranty Fund System for nearly 40 years. Created by state statutes, the guaranty funds fulfill the “promise to pay” that underlies all insurance contracts. For policyholders and claimants, the guaranty fund system is there, stepping in for failed insurers to pay policyholder claims at legally allowable limits.

The Guaranty Fund System has performed well over its history, paying out about $30 billion on approximately 600 property and casualty insolvencies since 1976. For policyholders and claimants, that's money that would have otherwise gone unpaid, or been greatly reduced, months, or even years, after the fact.

Supported by its member organization, the National Conference of Insurance Guaranty Funds (NCIGF), the state-based property and casualty Guaranty Fund System remains strong, attuned to current and emerging issues and brings essential consumer protection in an increasingly dynamic insurance industry. The National Conference of Insurance Guaranty Funds (NCIGF) is the non-profit, member-funded association formed to provide national assistance and support to the property and casualty guaranty funds located in each of the 50 states and the District of Columbia. The NCIGF coordinates information for multi-state insolvencies and provides legal, informational, administrative, communications and public policy support to our members.