What is the purpose of the Connecticut Insurance Guaranty Association?

The Connecticut Insurance Guaranty Association was established to provide protection to policyholders in the event that their insurance company goes insolvent. This association acts as a safety net, ensuring that policyholders can still receive payments for covered claims even when the insurer can no longer meet its obligations due to financial difficulties. This safety net is crucial for maintaining consumer confidence in the insurance market, as it alleviates concerns about the financial stability of insurance companies and ensures that individuals and businesses are protected from potential financial loss.

While advertising insurance products, evaluating rates, or assisting in sales may relate to different aspects of the insurance industry, they do not reflect the primary purpose of the Guaranty Association, which is specifically focused on protecting policyholders and ensuring claim payments in case of an insurer’s insolvency.