What is the primary purpose of the Connecticut Life and Health Insurance Guaranty Association?

The primary purpose of the Connecticut Life and Health Insurance Guaranty Association is to provide protection to policyholders in the event of an insurer's insolvency. This association plays a critical role in safeguarding the interests of consumers by ensuring that they do not lose their insurance benefits even if their insurance provider fails financially.

By providing this safety net, the association fosters public confidence in the insurance industry, assuring policyholders that their claims will still be honored, up to certain limits, if their insurer goes bankrupt. This protection is essential for maintaining stability in the insurance market and for ensuring that individuals and families can depend on their life and health insurance coverage during financial crises.

The other options do not align with the primary mission of this organization. For example, offering lower premiums focuses on pricing strategies, which is not part of the association's role. Similarly, providing a marketplace for insurers and endorsing specific insurance companies are not objectives associated with the guaranty association, as its mission strictly revolves around protecting consumers rather than influencing market competition or promoting specific providers.