The purpose of this subtitle is to protect the persons specified in KRS 304.42-030(1), subject to certain limitations, against failure in the performance of contractual obligations under life, health, and annuity policies, plans, or contracts specified in KRS 304.42- 030(2) because of the impairment or insolvency of the member insurer that issued the policies, plans, or contracts. To provide this protection:
(1) An association of member insurers is created to pay benefits and to continue coverages as limited by this subtitle; and (2) Member insurers of the association are subject to assessment to provide funds to carry out the purpose of this subtitle.