Question

The purpose of the Illinois Insurance Guaranty Fund

A) To provide insurance for low-income individuals
B) To guarantee insurance coverage for all Illinois residents
C) To pay the claims of insolvent insurers
D) To regulate insurance premiums

Answer 1

The Illinois Insurance Guaranty Fund is designed to pay the claims of insolvent insurers, providing a safety net for policyholders in case their insurance company cannot fulfill its obligations.

Step-by-step explanation:

The purpose of the Illinois Insurance Guaranty Fund is to pay the claims of insolvent insurers. This means that if an insurance company becomes financially unable to fulfill its obligations to policyholders, the Guaranty Fund steps in and pays out the claims. It provides a safety net for policyholders and ensures that they receive the benefits they are entitled to.