Question

What is the purpose of the California Insurance Guarantee Association?

A. To guarantee that all insurance companies in California will remain solvent.
B. To protect the interests of policyholders and beneficiaries against loss because an insolvent insurer is unable to pay its contractual obligations under property and casualty insurance policies
C. To protect the interests of the insurance companies and their investors against loss because an insolvent insurer is unable to pay its contractual obligations.
D. To protect insurance companies against loss when an insured is financially impaired and cannot pay their contractual obligations

Answer 1

The purpose of the California Insurance Guarantee Association (CIGA) is to protect the interests of policyholders and beneficiaries by providing a safety net in case their insurance company becomes insolvent.

Step-by-step explanation:

The purpose of the California Insurance Guarantee Association (CIGA) is to protect the interests of policyholders and beneficiaries. It provides a safety net for policyholders in case their insurance company becomes insolvent and is unable to pay its contractual obligations under property and casualty insurance policies. CIGA steps in to ensure that policyholders receive the benefits they are entitled to.