Insurance Guaranty Association Act

This act establishes a nonprofit guaranty association that all property and casualty insurers licensed in the state must join, funded by assessments on member insurers based on their net direct written premiums. When a member insurer becomes insolvent, the association steps in to pay covered claims of that insurer's policyholders and claimants, subject to statutory definitions, exclusions, and limits, and it takes on the insolvent insurer's rights and defenses through subrogation while claimants must first exhaust other available coverage. The act also sets out the association's board and plan of operation, gives the insurance regulator supervisory and examination authority, provides tools for detecting and preventing insurer insolvency, allows insurers to recoup assessments through rates, and grants immunity from liability for actions taken under it.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.